VMware prices three-tranche deal; BNY Mellon, Ipalco, Edison International sell notes

By Devika Patel

Knoxville, Tenn., Aug. 17 – Thursday brought announcements of four new issues in the investment-grade bond primary market.

Palo Alto, Calif., virtualization solutions provider VMware, Inc. priced $4 billion of fixed-rate senior notes in three parts on Wednesday after the market close, and Bank of New York Mellon Corp., a New York financial products and services company, sold $750 million of 12-year senior subordinated notes (A2/A-/ A+) late Wednesday.

VMware priced $1.25 billion of 2.3% three-year notes at a spread of 85 basis points over Treasuries; these notes were priced at 99.87 to yield 2.345%. A $1.5 billion tranche of 2.95% five-year notes priced with a Treasuries plus 120 bps spread; these notes were priced at 99.792 to yield 2.995%. VMware also sold $1.25 billion of 3.9% 10-year notes at 170 bps over Treasuries; these notes were priced at 99.664 to yield 3.941%.

Bank of New York Mellon priced its $750 million 3.3% senior subordinated notes (A2/A-/A+) due Aug. 23, 2029 at par to yield 108 bps over Treasuries.

In addition, Indianapolis Power & Light Co. holding company Ipalco Enterprises Inc. issued $405 million of 3.7% seven-year senior secured notes, and Rosemead, Calif., energy company Edison International Inc. priced $400 million of 2.4% five-year senior notes (A3/BBB/A-).

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