Becton Dickinson sells $6.2 billion; week’s supply nears $50 billion; AT&T eases

By Aleesia Forni and Cristal Cody

Virginia Beach, Dec. 4 – Becton, Dickinson and Co. came to Thursday’s primary market with a $6.2 billion offering of senior notes, helping push the week’s total new issuance to more than $49 billion.

The session also saw new deals price from Clorox Co., Church & Dwight Co., Inc. and JPMorgan Chase & Co.

Despite the flood of new issuance the market has seen during the first week of December, demand for high-grade bonds remains solid.

The orderbook for the new bonds priced by Becton Dickinson was more than three times oversubscribed.

The company sold its multi-billion dollar deal in five parts, each around 10 basis points to 15 bps tight of the midpoint of initial guidance.

JPMorgan came to the primary with a $2 billion offering of subordinated notes during the session.

Consumer products companies Clorox and Church & Dwight were each in the market with new bond offerings priced tight of guidance.

Also on Thursday, BGC Partners Inc. launched a new $300 million issue of five-year senior notes.

In total, $9 billion of new investment-grade bonds priced during the session, bringing the week’s total supply to $49.25 billion.

Sources are expecting the primary’s pace to continue into next week before slowing down ahead of the late-December holiday season.

Royal Bank of Canada tapped the Canadian market on Thursday with a C$1.5 billion offering of 2.35% five-year deposit notes priced at a spread of 91.8 bps over the Government of Canada benchmark, a source said. RBC Dominion Securities Inc. was the bookrunner.

In new issue secondary trading, Church & Dwight’s 2.45% notes due 2019 firmed less than 1 bp, a trader said.

The 3.5% notes due 2024 that Clorox brought tightened 3 bps on the offered side in the secondary market, a trader said.

No aftermarket activity was seen late afternoon in Becton Dickinson’s offering.

In other secondary activity, AT&T Inc.’s 3.9% notes due 2024 widened 4 bps on the day, a source said.

Investment-grade credit spreads headed out slightly weaker, sources said.

The Markit CDX North American Investment Grade series 23 index eased 1 bp to a spread of 62 bps.

Becton, Dickinson five-parter

Becton Dickinson sold a $6.2 billion five-tranche offering of senior notes (Baa2/BBB+/), according to an informed source.

The sale included $750 million of floaters due 2016 priced at par to yield Libor plus 45 bps.

A second tranche was $1.25 billion of 1.8% notes due 2017 priced at par, or Treasuries plus 85 bps.

There was also $1.25 billion of 2.675% five-year notes priced at par with a spread of 110 bps over Treasuries.

A $1.75 billion tranche of 3.734% bonds due 2024 sold at par, or 150 bps over Treasuries.

Finally, $1.2 billion of 4.685% 30-year bonds priced at par with a spread of Treasuries plus 175 bps.

All five tranches sold at the tight end of price talk.

Goldman Sachs & Co., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., MUFG and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds will be used for the acquisition of CareFusion Corp.

Becton Dickinson is a medical technology and supply company based in Franklin Lakes, N.J.

JPMorgan sub notes

JPMorgan Chase sold a $2 billion offering of 4.125% subordinated notes (Baa1/A-/A) due Dec. 15, 2026 at 99.746 with a spread of Treasuries plus 190 bps, according to a source away from the trade.

JPMorgan was the bookrunner.

Proceeds will be used for general corporate purposes.

JPMorgan is a New York-based bank.

Clorox 10-years

Clorox sold a $500 million offering of 10-year senior notes (Baa1/BBB+/) on Thursday with a spread of Treasuries plus 125 bps, according to a market source and an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.907 to yield 3.511%.

JPMorgan, Goldman Sachs, Morgan Stanley and RBC Capital Markets LLC were the bookrunners.

Proceeds will be used to repay the company’s $575 million of 5% senior notes due January 2015 and for general corporate purposes.

The 3.5% notes due 2024 that Clorox priced were quoted late afternoon in the secondary market at 122 bps offered, a trader said.

The manufacturer and marketer of consumer and professional products is based in Oakland, Calif.

Church & Dwight new issue

Church & Dwight issued $300 million of 2.45% five-year senior notes (Baa1/BBB+/) on Thursday at Treasuries plus 87.5 bps, according to an informed source and an FWP filed with the SEC.

Pricing was at 99.939 to yield 2.463%.

The notes sold tight of price guidance.

BofA Merrill Lynch, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes, including repayment of commercial paper debt incurred primarily for strategic acquisitions.

Church & Dwight’s 2.45% notes due 2019 traded modesty better at 87 bps bid in aftermarket trading, according to a trader.

The maker of personal-care, household and specialty products is based in Princeton, N.J.

BGC launches

BGC Partners launched $300 million of five-year senior notes (/BBB-/BBB-) at 5.5% on Thursday, according to a market source.

The notes will be sold via Rule 144A and Regulation S.

Cantor, Deutsche Bank Securities, Morgan Stanley and RBC Capital Markets are the bookrunners.

BCG Partners is a financial services company based in New York City.

AT&T softens

AT&T’s 3.9% notes due 2024 (A3/A-/A) traded 3 bps weaker over the morning and eased 1 bp in afternoon trading to 137 bps bid, a market source said.

AT&T sold $1 billion of the notes on March 5 at a spread of Treasuries plus 125 bps.

The telecommunications company is based in Dallas.

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