Analog Devices prints $2.1 billion; Toyota Motor Credit sells floaters; Time Warner firms

By Cristal Cody

Eureka Springs, Ark., Nov. 30 – Primary action on Wednesday included two new bond deals in the high-grade market.

Analog Devices, Inc. priced $2.1 billion of senior notes in four tranches.

Toyota Motor Credit Corp. priced $1.5 billion of one-year floating-rate notes during the session.

The Markit CDX North American Investment Grade index tightened 1 basis point on Wednesday to close at a spread of 73 bps.

In the secondary market, Time Warner Inc.’s 3.8% notes due Feb. 15, 2027 priced on Tuesday tightened about 5 bps.

Analog Devices prices

Analog Devices sold $2.1 billion of senior notes (A3/BBB/) in four tranches on Wednesday, according to a market source.

The company priced $400 million of 2.5% five-year notes with a spread of 75 basis points over Treasuries.

The $550 million tranche of 3.125% seven-year notes priced at a 100 bps spread over Treasuries.

Analog Devices priced $900 million of 3.5% 10-year notes with a spread of 120 bps plus Treasuries.

The $250 million tranche of 4.5% 30-year notes were sold at a spread of Treasuries plus 150 bps.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, and MUFG were the bookrunners.

Proceeds will be used for a portion of the cash consideration for the company’s planned merger with Linear Technology Corp. and for general corporate purposes.

The maker of circuits for electronic equipment is based in Norwood, Mass.

Toyota Credit sells floaters

Toyota Motor Credit priced $1.5 billion of one-year series B medium-term floating-rate notes (Aa3/AA-/) at par to yield Libor plus 25 bps on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The bookrunners were BofA Merrill Lynch and RBC Capital Markets, LLC.

Toyota Motor Credit is a financing arm and subsidiary of Toyota Motor Corp.

Time Warner improves

Time Warner’s 3.8% notes due 2027 traded about 5 bps tighter at 150 bps bid in the secondary market, a source said early Wednesday.

Time Warner sold $1.5 billion of the notes (Baa2/BBB-/BBB+) on Tuesday at a spread of 155 bps over Treasuries.

The media company is based in New York.

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