Bayer prices $15 billion; Duke Energy Florida sells $1 billion; Walmart deal in focus

By Cristal Cody

Tupelo, Miss., June 18 – Bayer AG tapped the high-grade primary market on Monday with a $15 billion eight-part Rule 144A and Regulation S offering of senior notes.

The company held three days of fixed-income investor calls that ended Friday for the deal.

Bayer closed June 7 on its $63 billion acquisition of Monsanto Co.

Duke Energy Florida, LLC also priced a $1 billion two-part offering of first mortgage bonds.

Prospect Capital Corp. placed an upsized $70 million add-on to its 5.875% senior notes (/BBB-//Kroll: BBB) due March 15, 2023 on Monday.

About $35 billion to as much as $50 billion of volume, including Bayer’s deal, is forecast for the week, according to syndicate sources.

Walmart Inc. is expected in the immediate horizon with a bond deal following fixed-income investor calls held on Monday, according to a market source.

Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the arrangers.

The mid-June week typically is slow with just $15 billion of average issuance since 2011 but higher-than-average volume is expected this week because of deal-related debt financing, BofA Merrill Lynch analysts said in a note released Monday.

The Markit CDX North American Investment Grade 30 index ended the day modestly softer at a spread of 61 basis points.

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