Macquarie prices $2.5 billion notes; Express Scripts, Starbucks, Royal Caribbean tap primary

By Cristal Cody

Tupelo, Miss., Nov. 20 – Macquarie Group Ltd. led pricing action in the high-grade bond market on Monday with a $2.5 billion three-part offering of senior notes.

Also on Monday, Express Scripts Holding Co. priced a $1.4 billion three-tranche offering of guaranteed senior notes.

Starbucks Corp. raised $1 billion in a two-tranche sale of senior notes.

In addition, Royal Caribbean Cruises Ltd. priced $800 million of senior notes in two parts.

Monday and Tuesday are expected to be the busiest sessions of the week for primary activity, a source said.

Market sources expect about $5 billion to $10 billion of total issuance for the week.

The Markit CDX North American Investment Grade 29 index ended slightly tighter at a spread of 55 basis points.

Macquarie brings three tranches

Macquarie Group priced $2.5 billion of senior notes (A3/BBB/A-) in three tranches on Monday, according to a market source.

The company sold $650 million of floating-rate notes due Nov. 28, 2023 at Libor plus 102 basis points.

Macquarie priced $1.1 billion of 3.189% six-year fixed-to-floating-rate notes with a spread of Treasuries plus 110 bps. The notes will convert to a floating rate of Libor plus 102.3 bps after the initial fixed-rate period.

In the final tranche, the company sold $750 million of 3.763% fixed-to-floating-rate notes due Nov. 28, 2028 at a 140 bps spread over Treasuries. The notes will convert to a floating rate of Libor plus 137.2 bps after the initial fixed-rate period.

BofA Merrill Lynch, Citigroup Global Markets Inc., HSBC Securities (USA) LLC, J.P. Morgan Securities LLC and and Macquarie Group were the bookrunners.

Macquarie Group is a Sydney, Australia-based financial services company.

Express Scripts sells $1.4 billion

Express Scripts Holding priced a $1.4 billion three-tranche offering of guaranteed senior notes (Baa2/BBB+/BBB) on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

Express Scripts placed $400 million of three-year floating-rate notes at par to yield Libor plus 75 bps.

The company sold $500 million of 2.6% three-year notes at 99.977 to yield 2.608% and a spread of 75 basis points over Treasuries.

The $500 million tranche of 3.05% five-year notes were priced at 99.793 to yield 3.095%, or a Treasuries plus 100 bps spread.

The tranches priced on the tight side of guidance.

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

The notes are guaranteed by subsidiaries Express Scripts, Inc. and Medco Health Solutions, Inc.

Express Scripts Holdings is a pharmacy benefit management company based in St. Louis.

Starbucks prices $1 billion

Starbucks priced $1 billion of senior notes (A3/A-/A-) in two tranches on Monday, according to a market source and an FWP filing with the SEC.

The company sold $500 million of 2.2% three-year notes at 99.919 to yield 2.228%. The notes priced with a spread of 37 bps over Treasuries.

Starbucks priced $500 million of 3.75% 30-year notes at 99.731 to yield 3.765%, or a Treasuries plus 97 bps spread.

The notes priced on the tight side of guidance.

Citigroup Global Markets, Goldman Sachs & Co. LLC and U.S. Bancorp Investments, Inc. were the bookrunners.

Starbucks is a Seattle-based specialty coffee retailer.

Royal Caribbean sells $800 million

Royal Caribbean Cruises sold $800 million of senior notes (Baa3/BBB-/) in two parts on Monday, according to a market source and an FWP filing with the SEC.

The company priced $300 million of 2.65% notes due Nov. 28, 2020 at 99.977 to yield 2.658% or a spread of 80 bps over Treasuries.

Royal Caribbean sold $500 million of 3.7% notes due March 15, 2028 at 99.623 to yield 3.745%, or a Treasuries plus 137.5 bps spread.

Both tranches priced on the tight side of talk.

The bookrunners were BofA Merrill Lynch, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., Goldman Sachs, Mizuho Securities USA Inc., SMBC Nikko Securities America Inc., BBVA Securities Inc., Citigroup Global Markets, HSBC Securities (USA) Inc., J.P. Morgan Securities, Scotia Capital (USA) Inc. and SG Americas Securities, LLC.

In the previous week, the company held a two-day round of fixed income investor calls that ended on Wednesday.

Royal Caribbean is a cruise line company based in Miami.

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