Morning Commentary: CVS Health to sell notes in nine tranches; Swedish Export Credit eyes notes

By Devika Patel

Knoxville, Tenn., March 6 – Primary activity in the investment-grade bond market on Thursday brought two new deals to market.

CVS Health Corp., the Woonsocket, R.I., operator of retail pharmacies and a pharmacy benefits manager, announced a nine-part offering of senior notes with fixed- and floating-rate tranches.

And Stockholm-based financial services company Swedish Export Credit Corp. talked a dollar-denominated offering of five-year global notes.

Meanwhile, Deerfield, Ill., snack company Mondelez International, Inc. reported that it priced C$600 million of 3.25% notes due 2025 on Monday.

CVS is preparing to sell floating-rate notes due in 2020 and 2021 and fixed-rate notes due 2020, 2021, 2023, 2025, 2028, 2038 and 2048.

The floaters are non-callable. The 2020 notes and 2021 fixed-rate notes have a make-whole call. The remaining fixed-rate notes will have a make-whole call and then a par call.

Barclays, Goldman Sachs & Co., BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners for the CVS notes.

Proceeds will be used with borrowings under an existing term loan facility and cash on hand to fund the approximately $47.9 billion cash portion of the company’s planned merger with Aetna.

Swedish Export Credit (Aa1/AA+) plans to price a dollar-denominated offering of five-year global notes with initial price talk in the mid-swaps plus 20 basis points area.

Barclays, BNP Paribas Securities Corp., BofA Merrill Lynch and HSBC Securities (USA) Inc. are the lead bookrunners for the notes.

Mondelez International sold C$600 million of 3.25% seven-year notes (Baa1/BBB/BBB) on Monday at Government of Canada curve plus 120 basis points.

Pricing was at 99.547 to yield 3.323%.

BofA Merrill Lynch, HSBC Securities (Canada) Inc. and TD Securities Inc. are the bookrunners.

Proceeds will be used for general corporate purposes, including debt repayment.

© 2015 Prospect News.
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