High-grade supply robust; Gilead Sciences, BP, Scotiabank, Quebec, Kommuninvest price

By Cristal Cody

Tupelo, Miss., Sept. 14 – Primary action remained heavy in the high-grade bond market on Thursday.

Gilead Sciences Inc. tapped the market with a $3 billion four-part deal.

BP Capital Markets plc sold $3 billion of notes in four tranches.

Bank of Nova Scotia priced $1.4 billion of senior notes in two parts.

In other issuance, the Province of Quebec priced an upsized $1.25 billion of three-year floating-rate notes.

In addition, Kommuninvest I Sverige AB sold $1 billion of three-year notes.

The Markit CDX North American Investment Grade 28 index eased about 1 basis point to a spread of 57 bps.

Gilead Sciences sold $3 billion of senior notes (A3/A/) in four tranches on Thursday, according to FWP filings with the Securities and Exchange Commission.

In the fixed-rate tranche, the company sold $1 billion of 1.85% two-year notes at a spread of Treasuries plus 50 bps.

Gilead Sciences also priced $750 million of one-year floating-rate notes at par to yield Libor plus 17 bps.

The company sold $750 million of floating-rate notes due March 20, 2019 at par to yield Libor plus 22 bps.

Gilead Sciences also sold $500 million of two-year floaters at par to yield Libor plus 25 bps.

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

Proceeds will be used to help finance the company’s acquisition of Kite Pharma, Inc.

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