Fortive returns for more; Scotiabank, Lloyds Bank price; Under Armour firms; CDX eases

By Cristal Cody

Eureka Springs, Ark., June 9 – In the high-grade bond primary market on Thursday, Fortive Corp. priced a $200 million add-on to its 4.3% 30-year senior notes brought to market on Monday.

The Bank of Nova Scotia also sold $1.25 billion of three-year fixed- and floating-rate senior notes on Thursday.

In addition, Lloyds Bank plc sold $200 million of fixed-rate callable senior medium-term notes due June 30, 2028 during the session.

In the secondary market, Under Armour, Inc.’s $600 million offering of 3.25% senior notes due 2026 that priced on Wednesday traded 6 basis points tighter earlier in the day.

Dell, Inc.’s 6.02% senior secured notes due 2026 traded more than 10 bps better than where the bonds were seen on Wednesday.

The Markit CDX North American Investment Grade index closed the day 2 bps weaker at a spread of 75 bps.

Fortive taps market again

Fortive sold a $200 million add-on to its 4.3% 30-year senior notes (Baa1/BBB) on Thursday at 173 bps over Treasuries, according to a market source and a company news release.

The company originally sold $350 million of the notes due June 15, 2046 at 175 bps over Treasuries on Monday. The total outstanding is $550 million.

The bonds were sold in connection with Fortive’s spinoff from Danaher Corp., which will guarantee the notes until the spinoff occurs.

Barclays, Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the bookrunners.

Fortive intends to use the proceeds from the sale of the reopening to make payments to Danaher for the contribution of assets to Fortive by Danaher in connection with the separation, to pay related fees and expenses and for general corporate purposes. Fortive expects that the proceeds of the additional 30-year notes will reduce incrementally other types of debt it had anticipated incurring to fund such payments.

Fortive is an industrial growth company based in Everett, Wash.

Washington, D.C.-based Danaher is a science and technology company.

Scotiabank prices notes

The Bank of Nova Scotia sold $1.25 billion of three-year fixed- and floating-rate senior notes on Thursday, according to an FWP filing with the Securities and Exchange Commission.

The bank priced $1 billion of 1.65% three-year notes at 99.994 to yield 1.652%, or Treasuries plus 75 bps.

The $250 million tranche of floating-rate notes priced at par to yield Libor plus 66 bps.

Scotia Capital (USA) Inc., BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays, Wells Fargo Securities, LLC and Credit Suisse Securities (USA) LLC were the underwriters.

The bank is based in Toronto.

Lloyds Bank sells MTNs

Lloyds Bank sold $200 million of fixed-rate callable senior medium-term notes due June 30, 2028 at par on Thursday, according to a 424B2 filing with the SEC.

The series A notes are fully and unconditionally guaranteed by Lloyds Banking Group plc.

Barclays is the underwriter.

The bank is based in London.

Under Armour firms

Under Armour’s 3.25% notes due 2026 traded at 154 bps offered in the secondary market early Thursday, according to a market source.

The company sold $600 million of the 10-year notes on Wednesday at a spread of 160 bps over Treasuries.

Under Armour is a Baltimore-based developer, marketer and distributor of brand performance apparel, footwear and accessories.

Dell tightens

Dell’s 6.02% notes due 2026 were quoted tighter at 386 bps offered early Thursday, according to a market source.

The notes were seen early Wednesday at 397 bps offered in the secondary market.

Dell sold $3.75 billion of the notes (Baa3/BBB-/BBB-) on May 17 at Treasuries plus 425 bps.

The technology and services company is based in Round Rock, Texas.

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