CVS prices $40 billion in nine parts; Svensk ExportKredit to sell notes, OeKB prices

By Devika Patel

Knoxville, Tenn., March 6 – Tuesday saw one of the biggest new investment-grade deals ever come to market as CVS Health Corp. priced $40 billion of notes in nine parts.

The deal from the Woonsocket, R.I., operator of retail pharmacies was the third biggest ever, behind Verizon Communications, Inc.’s $49 billion from September 2013 and Anheuser-Busch InBev Finance Inc.’s $46 billion from January 2016.

In addition to that deal, there was one new announced, with Stockholm-based financial services company Swedish Export Credit Corp. preparing a dollar-denominated offering of five-year global notes; Vienna-based export and financial services company Oesterreichische Kontrollbank AG issuing $1.5 billion of 2.875% five-year guaranteed global notes; and Deerfield, Ill., snack company Mondelez International, Inc. pricing C$600 million of 3.25% notes seven-year notes.

CVS sells $40 billion notes

CVS Health priced $40 billion of notes in nine parts with floating-rate senior notes in two tranches and fixed-rate senior notes in seven tranches.

The company sold $1 billion of two-year floaters at Libor plus 63 bps with a price of par; $1 billion of three-year floaters at Libor plus 72 bps with a price of par; $2 billion of 3.125% two-year notes at a spread of Treasuries plus 90 bps which priced at 99.952 to yield 3.15%; $3 billion of 3.35% three-year notes at a spread of Treasuries plus 95 bps which priced at 99.949 to yield 3.368%; $6 billion of 3.7% five-year notes at a spread of Treasuries plus 125 bps which priced at 99.104 to yield 3.899%; $5 billion of 4.1% seven-year notes at a spread of Treasuries plus 145 bps which priced at 99.021 to yield 4.262%; $9 billion of 4.3% 10-year notes at a spread of Treasuries plus 160 bps which priced at 98.594 to yield 4.475%; $5 billion of 4.78% 20-year notes at a spread of Treasuries plus 180 bps which priced at 98.014 to yield 4.937%; and $8 billion of 5.05% 30-year notes at a spread of Treasuries plus 195 bps which priced at 99.43 to yield 5.087%.

Barclays, Goldman Sachs & Co., BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

Proceeds will be used with borrowings under an existing term loan facility and cash on hand to fund the approximately $47.9 billion cash portion of the company’s planned merger with Aetna.

Svensk eyes global notes

Swedish Export Credit (Aa1/AA+) plans to price a dollar-denominated offering of Securities and Exchange Commission-registered five-year global notes on Wednesday.

Initial price talk was in the mid-swaps plus 20 basis points area.

Barclays, BNP Paribas Securities Corp., BofA Merrill Lynch and HSBC Securities (USA) Inc. are the lead bookrunners for the notes.

Settlement is expected March 14.

OeKB sells $1.5 billion notes

Oesterreichische Kontrollbank priced $1.5 billion of 2.875% five-year guaranteed global notes (Aa1/AA+/) at Treasuries plus 25.55 bps, with pricing at 99.912.

The notes are guaranteed by the Republic of Austria.

Bookrunners were Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. and BofA Merrill Lynch.

Mondelez prices C$600 million

Mondelez International sold C$600 million of 3.25% notes (Baa1/BBB/BBB) due March 7, 2025 on Monday at Government of Canada curve plus 120 bps. Pricing was at 99.547 to yield 3.323%.

BofA Merrill Lynch, HSBC Securities (USA) and TD Securities (USA) LLC are the bookrunners.

Proceeds will be used for general corporate purposes, including debt repayment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.