Primary surge continues; Gilead does $10 billion deal; Intel, Wal-Mart tighten

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 9 – The investment-grade primary was again on fire during Wednesday’s session.

Issuers raced to market to price $21.05 billion during the trading day, pushing the week’s total reported deals to $33.76 billion in only two sessions.

The session was led by Gilead Sciences Inc., which was in the market with a $10 billion megadeal for debt repayment, working capital, dividends and share repurchases.

The offering launched between 15 basis points to 20 bps tighter than initial price thoughts, though details of the ultimate sale were unavailable at press time.

Marriott International Inc., Marsh & McLennan Cos., Inc. and Kilroy Realty, LP were each in the market with upsized new issues.

Also on Wednesday, Lowe’s Cos., Inc. sold $1.75 billion of bonds in three parts after dropping a planned three-year fixed-rate tranche, opting to issue a lone floating-rate note due 2018.

Pentair Finance SA was in the market with $1.15 billion of notes in three parts, with both the three- and five-year tranches pricing in line with guidance, which was unchanged from initial price thoughts.

Investment-grade bonds traded mostly better, while credit spreads weakened on Wednesday.

Intel Corp.’s 4.9% senior notes due 2045 tightened 5 bps in secondary trading over the afternoon.

Wal-Mart Stores Inc.’s bonds (Aa2/AA/AA) traded about 4 bps to 10 bps tighter on Wednesday.

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