By Cristal Cody
Tupelo, Miss., Aug. 8 – Investment-grade companies sold nearly $9 billion of bonds on Thursday, bringing week to date deal volume to more than $36 billion.
CVS Health Corp. priced a $3.5 billion three-part offering of fixed-rate senior notes.
Hartford Financial Services Group, Inc. sold $1.4 billion of senior notes in two tranches.
Welltower Inc. raised $1.2 billion in reopened and new issue tranches.
Humana Inc. priced $1 billion of fixed-rate senior notes in two parts.
EPR Properties priced $500 million of 10-year senior notes.
Magellan Midstream Partners, LP placed $500 million of senior notes due March 1, 2050.
Public Service Electric and Gas Co. sold $400 million of 30-year secured medium-term notes.
Also, Paccar Financial Corp. tapped the primary market with a $300 million offering of five-year medium-term notes.
About $25 billion to $30 billion of issuance was expected by syndicate sources for the week.
Elsewhere, inflows resumed this week.
Lipper US Fund Flows reported that corporate investment-grade funds had inflows of $2.8 billion for the past week ended Wednesday, compared to an outflow of $62 million in the previous week.
The Markit CDX North American Investment Grade 32 index firmed about 2 basis points to close Thursday at a spread of 58 bps.
New issues priced this week are trading mostly tighter in the secondary market, a source said.
McDonald’s Corp.’s $2 billion of senior medium-term notes (Baa1/BBB+/) priced in two tranches on Wednesday improved about 4 bps to 5 bps.
The Chicago-based fast food chain’s $1 billion tranche of 3.625% notes due Sept. 1, 2049 tightened 5 bps. The notes priced at a Treasuries plus 150 bps spread.
CVS Health prices $3.5 billion
CVS Health priced $3.5 billion of fixed-rate senior notes (Baa2/BBB/) in three parts on Thursday, according to an FWP filing with the Securities and Exchange Commission.
A $1 billion five-year tranche of 2.625% notes priced at 99.485 to yield 2.736%. The notes were placed with a Treasuries plus 120 bps spread.
The company sold $750 million of 3% seven-year notes at 99.887 to yield 3.018%, or a 140 bps over Treasuries spread.
CVS Health brought $1.75 billion of 3.25% 10-year notes at 99.097 to yield 3.357%. The notes priced with a Treasuries plus 165 bps spread.
Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Securities, Inc. and Wells Fargo Securities LLC were the bookrunners.
CVS is a Woonsocket, R.I., operator of retail pharmacies and a pharmacy benefits manager.
Hartford prints $1.4 billion
Hartford Financial Services Group priced $1.4 billion of senior notes (Baa1/BBB+/) in two tranches on Thursday, according to FWP filings with the SEC.
The company sold $600 million of 2.8% 10-year notes at 99.68 to yield 2.837%, or a Treasuries plus 112 bps spread.
An $800 million tranche of 3.6% 30-year notes priced at 98.877 to yield 3.662%. The bonds priced with a spread of 142 bps over Treasuries.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities and U.S. Bancorp Investments Inc. were the bookrunners.
Hartford Financial is a Hartford, Conn., financial services holding company and parent company of Hartford Insurance Co.
Welltower prices $1.2 billion
Welltower priced $1.2 billion of senior notes (Baa1/BBB+/BBB+) in reopened and new issue tranches on Thursday, according to a market source and an FWP filing with the SEC.
Welltower brought a $450 million add-on to its 3.625% senior notes due March 15, 2024 at a spread of Treasuries plus 95 bps. The notes priced at 104.774 to yield 2.494%.
Initial price talk was in the Treasuries plus 115 bps area.
The company originally sold $500 million of the notes on Feb. 13 at 99.657 to yield 3.699% and a spread of Treasuries plus 117 bps. The total outstanding is $950 million.
Welltower sold $750 million of new 3.1% notes due Jan. 15, 2030 at a spread of 140 bps over Treasuries, or 99.816 to yield 3.121%.
The notes priced tighter than initial talk in the Treasuries plus 160 bps area.
| Citigroup Global Markets Inc., Goldman Sachs, KeyBanc Capital Markets LLC, Barclays, BofA Securities, Credit Agricole Securities (USA) Inc., Deutsche | Bank Securities Inc., J.P. Morgan Securities, Morgan Stanley | & Co. LLC, MUFG, RBC | Capital Markets, LLC, UBS | Securities LLC and Wells Fargo Securities were the bookrunners.
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| Welltower is a senior housing and health care real estate investment trust based in Toledo, Ohio.
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| Humana sells $1 billion notes
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| Humana priced $1 billion of fixed-rate senior notes (Baa3/BBB+/BBB) in two tranches on Thursday, according to an FWP filing with the SEC.
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| Humana sold $500 million of 3.125% 10-year notes at 99.898 to yield 3.137% and a spread of Treasuries plus 140 bps.
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| The company priced $500 million of 3.95% 30-year notes at 99.634 to yield 3.971%. The notes priced with a spread of 170 bps over Treasuries.
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| BofA Securities, Barclays and Wells Fargo Securities were the bookrunners.
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| The health care and insurance company is based in Louisville, Ky.
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| EPR Properties prints
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| EPR Properties priced $500 million of 3.75% 10-year senior notes (Baa2/BBB-/BBB-) at 99.168 to yield 3.851%, or a spread of 210 bps over Treasuries on Thursday, according to an FWP filing with the SEC.
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| Citigroup Global Markets, Barclays, BofA Securities and RBC Capital Markets were the bookrunners.
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| The company held fixed income investor calls on Monday.
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| The real estate investment trust for entertainment properties is based in Kansas City, Mo.
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| Magellan Midstream sells bonds
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| Magellan Midstream Partners priced $500 million of 3.95% senior notes due March 1, 2050 on Thursday at a spread of 172 bps over Treasuries, according to an FWP filing with the SEC.
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| The notes (Baa1/BBB+) priced at 99.91 to yield 3.955%.
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| Barclays, PNC Capital Markets LLC, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC and Wells Fargo Securities were the bookrunners.
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| Proceeds will be used for general partnership purposes.
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| The energy transportation, storage and distribution company is based in Tulsa, Okla.
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| PSE&G brings secured bonds
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| Public Service Electric and Gas (A2/BBB+/A-) priced $400 million of 3.2% secured medium-term notes due Aug. 1, 2049 on Thursday at 99.275 and a spread of Treasuries plus 98 bps, according to a market source and an FWP filed with the SEC.
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| The notes priced on the tight side of guidance in the 100 bps over Treasuries spread area.
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| MUFG, Scotia Capital (USA) Inc. and Wells Fargo Securities were the lead managers.
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| Proceeds will be used to repay commercial paper.
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| PSE&G is a Newark, N.J.-based electric and gas utility.
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| Paccar Financial in primary
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| Paccar Financial (A1/A+/) priced $300 million of 2.15% five-year medium-term notes at 99.779 to yield 2.197% and a spread of Treasuries plus 67 bps on Thursday, according to an FWP filing with the SEC.
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| MUFG, RBC Capital Markets, U.S. Bancorp Investments, Wells Fargo Securities, Mizuho Securities USA LLC, Williams Capital Group, LP and Loop Capital Markets LLC were the bookrunners.
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| Paccar Financial is a financing arm of Bellevue, Wash.-based Paccar Inc.
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