Apple, Eli Lilly, General Motors Financial, EnLink tap primary market; Apple notes soften

By Cristal Cody

Tupelo, Miss., May 4 – Pricing action stayed strong in the high-grade bond market over Thursday’s session.

Apple Inc. was expected to price a six-tranche offering of notes. Final pricing details were not available by press time.

Eli Lilly & Co. priced a $2.25 billion three-tranche offering of senior notes (A2/AA-/A) on Thursday.

General Motors Financial Co. Inc. placed a $750 million tap of its three-year floating-rate notes.

EnLink Midstream Partners, LP priced a $500 million split-rated offering of 30-year senior notes.

Also, Southern Co. Gas Capital Corp. sold $450 million of 30-year senior notes.

The Markit CDX North American Investment Grade index closed the day modestly softer at a spread of 63 basis points.

In secondary trading, Apple’s existing notes priced in February softened 4 bps to 6 bps on Thursday.

Eli Lilly prices

Eli Lilly priced $750 million of 2.35% five-year notes at 99.849 to yield 2.382% and a spread of Treasuries plus 50 bps in the offering, according to an FWP filing with the Securities and Exchange Commission.

Eli Lilly also sold $750 million of 3.1% 10-year notes at 99.965 to yield 3.104%, or Treasuries plus 75 bps.

The final $750 million tranche of 3.95% 30-year notes priced at 99.459 to yield 3.981%. The bonds were sold with a spread of 98 bps over Treasuries.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and Barclays were the bookrunners.

Proceeds will be used for general corporate purposes, including to repay at maturity the company’s $600 million of 1.25% notes due 2018, $200 million of 4.5% notes due 2018 and $600 million of 1.95% notes due 2019.

Eli Lilly is an Indianapolis-based pharmaceutical company.

GM Financial reopens

General Motors Financial (Baa3/BBB/BBB-) sold $750 million in a reopening of its three-year floating-rate notes on Thursday with a coupon of Libor plus 93 bps, according to an FWP filing with the SEC.

The notes priced at 100.286, plus accrued interest from April 13, to yield Libor plus 83.5 bps.

TD Securities (USA) was the bookrunner.

General Motors Financial first sold $750 million of the notes in an offering on April 10 at par to yield Libor plus 93 bps. The total outstanding now is $1.5 billion.

The issue is guaranteed by operating subsidiary AmeriCredit Financial Services, Inc.

General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.

EnLink sells bonds

EnLink Midstream Partners sold $500 million of 5.45% 30-year senior notes on Thursday at a spread of 245 bps over Treasuries, according to an FWP filing with the SEC.

The split-rated notes (Ba1/BBB-/BBB-) priced at 99.981 to yield 5.451%.

Barclays, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC were the active bookrunners.

Proceeds from the deal will be used to repay outstanding borrowings under the company’s revolving credit facility and for general corporate purposes.

EnLink is a Dallas-based midstream energy services provider.

Southern Co. Gas prints

Southern Co. Gas Capital sold $450 million of 4.4% 30-year series 2017A senior notes on Thursday at 99.765 to yield 4.414%, according to an FWP filing with the SEC.

The notes priced with a spread of Treasuries plus 140 bps.

BofA Merrill Lynch, Goldman Sachs & Co., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities were the bookrunners.

The notes are guaranteed by Southern Co. Gas.

Proceeds will be used to repay all or a portion of the company’s short-term debt and for general corporate purposes.

Southern Co. Gas Capital is a financing arm of Atlanta-based energy services holding company Southern Co. Gas, which is a subsidiary of Southern Co.

Apple softens

Apple’s 3.5% notes due Feb. 9, 2027 eased 4 bps on Thursday to 81 bps bid in secondary trading, according to a market source.

The notes had tightened 5 bps in the previous session.

The company sold $2.25 billion of the notes on Feb. 2 at par to yield a spread of Treasuries plus 88 bps.

Apple’s 4.25% notes due Feb. 9, 2047 softened to 116 bps bid from 110 bps bid on Wednesday in the secondary market.

The bonds had traded 5 bps better on Wednesday.

Apple sold $1 billion of the bonds in the Feb. 2 offering at 99.798 to yield 4.262%, or Treasuries plus 115 bps.

The computer and mobile communications device company is based in Cupertino, Calif.

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