CVS prices $2 billion; Morgan Stanley, Nasdaq, CIBC, KeyBank, Societe Generale in primary

By Cristal Cody

Tupelo, Miss., Dec. 7 – Corporate issuers including CVS Health Corp., Morgan Stanley and Nasdaq, Inc. tapped the high-grade primary market on Monday.

CVS Health sold $2 billion of new and reopened senior notes (Baa2/BBB/) in two tranches.

The company priced a $750 million tap of its 1.3% notes due Aug. 21, 2027 and a new $1.25 billion tranche of notes due Feb. 28, 2031.

Morgan Stanley (A2/BBB+/A) brought $2.5 billion of global medium-term senior fixed-to-floating-rate notes due Dec. 10, 2026 to the market on Monday.

Nasdaq priced $1.9 billion of senior notes (Baa2/BBB/) in three tranches.

The company sold $600 million of two-year notes, $650 million of notes due Jan. 15, 2031 and $650 million of 20-year notes.

Washington Gas sells tap

System Energy Resources, Inc. also came by with $200 million of five-year first mortgage bonds (Baa1/A/) on Monday.

Washington Gas Light Co. priced a $100 million reopening of its 3.65% medium-term notes due Sept. 14, 2049 (A3/A-/A) during the session, bringing the total outstanding issue to $400 million.

In addition, Canadian Imperial Bank of Commerce offered three-year fixed- and floating-rate senior notes (A2/BBB+/AA-) in two tranches.

The floaters are talked to price at SOFR plus a spread, while the fixed-rate notes are talked to price in the Treasuries plus 50 basis points area.

KeyBank NA marketed two tranches of senior notes (A3/A-/A-) that includes floating-rate notes due Jan. 3, 2024 talked to price in the SOFR plus 51 bps area and fixed-to-floating-rate notes due Jan. 3, 2024 talked to print in the Treasuries plus 45 bps spread area.

Societe Generale SA (A1/A/A-) offered dollar-denominated fixed-to-floating-rate notes due Dec. 14, 2026 that are talked at the Treasuries plus 135 bps to 140 bps area.

Also, Guardian Life Global Funding marketed $350 million of five-year notes (Aa2/AA+/) backed by funding agreements on Monday. Initial price talk is at the Treasuries plus 65 bps spread area.

About $15 billion to $20 billion of high-grade bonds are expected in the primary market this week with volume likely front-loaded, according to syndicate sources.

More than $21 billion of corporate bonds priced last week, boosted by Goldman Sachs Group Inc.’s $2.5 billion two-part offering of senior notes (A3/BBB+/A) on Friday.

The Markit CDX North American Investment Grade 35 index softened modestly to a spread of 50.85 bps from 50.4 bps on Friday.

The iShares iBoxx Investment Grade Corporate Bond ETF edged up 0.09% to $137.12.

The PIMCO Investment Grade Corporate Bond index improved 0.11% at $116.58.

© 2015 Prospect News.
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