Biogen, Danaher price; American Airlines upsizes pass-throughs; HSBC, JPMorgan paper soft

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 10 – Investment-grade bond activity kept up the active pace on Thursday, with issuers bringing another $12.4 billion of supply to market.

This figure pushes the shortened week’s total to a staggering $46.17 billion so far.

Biogen Inc. priced the day’s largest new issue, offering $6 billion of notes to help fund share buybacks.

Tranches of Danaher Corp.’s new $2 billion four-part offering sold between 20 basis points and 30 bps tighter than initial price thoughts.

American Airlines, Inc. also entered the day’s primary with an upsized $1.06 billion offering of pass-through certificates in three parts.

In other primary happenings, Credit Suisse Group Funding (Guernsey) Ltd. sold $2 billion of seven-year senior notes, Danske Bank sold $1 billion of five-year notes and Wyndham Worldwide Corp. priced 10-year notes at the tight end of guidance.

Investment-grade bank and financial paper traded mostly flat to wider on Thursday, while credit spreads improved modestly.

Paper from Lloyds Bank plc and Barclays plc headed out unchanged in the secondary market.

HSBC Holdings plc’s 4.25% subordinated notes due 2025 eased 2 bps.

JPMorgan Chase & Co.’s 3.9% senior holding company notes due 2025 traded 4 bps wider.

Bank of America Corp.’s 3.875% senior notes due 2025 were 3 bps wider in the secondary market.

Morgan Stanley’s 4% senior notes due 2025 eased 2 bps over the day.

The Markit CDX North American Investment Grade index firmed 1 bp on Thursday to a spread of 80 bps.

Biogen sells $6 billion

Biogen was in Thursday’s market with a $6 billion four-tranche offering of senior notes (Baa1/A-), according to an informed source.

The company priced $1.5 billion of 2.9% five-year notes at 99.792 to yield 2.945%, or 140 bps over Treasuries.

The tranche was guided in the range of Treasuries plus 140 bps to 145 bps, tightened from the Treasuries plus 162.5 bps area.

Also, $1 billion of 3.625% seven-year notes were issued with a spread of Treasuries plus 170 bps, at the tight end of guidance set in the range of Treasuries plus 170 bps to 175 bps.

Initially, the seven-year tranche was talked in the Treasuries plus 187.5 bps area.

Pricing was at 99.92 to yield 3.638%.

A $1.75 billion tranche of 4.05% 10-year bonds sold at 99.764 to yield 4.079%, or Treasuries plus 185 bps.

Guidance was set in the range of Treasuries plus 185 bps to 190 bps following initial talk in the Treasuries plus 200 bps area.

The issuer also printed $1.75 billion of 5.2% 30-year bonds at 99.294 to yield 5.247% with a 225 bps spread over Treasuries.

The notes sold at the tight end of price guidance set at Treasuries plus 225 bps to 230 bps, tightened from talk in the Treasuries plus 237.5 bps area.

Bookrunners are Goldman Sachs & Co. and BofA Merrill Lynch.

Proceeds will be used, together with cash on hand, to fund share repurchases of common stock under a $5 billion stock repurchase plan and for working capital and other general corporate purposes.

The biopharmaceutical company is based in Cambridge, Mass.

Danaher sells four-parter

Also on Thursday, Danaher priced $2 billion of senior notes (A2/A) in four parts on Thursday, according to a market source and an FWP filed with the Securities and Exchange Commission.

There was $500 million of 1.65% notes due 2018 sold at 99.866 to yield 1.696%, or Treasuries plus 65 bps.

Pricing was at the tight end of the Treasuries plus 70 bps area guidance following talk in the Treasuries plus 90 bps area.

A second tranche was $500 million of 2.4% notes due 2020 priced with a 90 bps spread over Treasuries. The issue sold at 99.757 to yield 2.452%.

Guidance was set in the Treasuries plus 95 bps area, tightened from talk in the Treasuries plus 110 bps area.

The company also priced $500 million of 3.35% notes due 2025 at 99.857 to yield 3.367% with a spread of Treasuries plus 115 bps.

Pricing was at the tight end of the Treasuries plus 120 bps area guidance, which firmed from talk set in the area of Treasuries plus 140 bps.

Finally, there was $500 million of 4.375% bonds due 2045 sold with a spread of Treasuries plus 140 bps. The notes priced at 99.784 with a yield of 4.388%.

Price guidance was set in the Treasuries plus 145 bps area following initial talk set in the Treasuries plus 170 bps area.

Bookrunners are Citigroup Global Markets Inc., Barclays, Jefferies & Co., J.P. Morgan Securities LLC, MUFG and Wells Fargo Securities LLC.

Proceeds will be used to fund a portion of the commercial paper borrowings issued as part of the company’s acquisition of Pall Corp.

Washington, D.C.-based Danaher designs, manufactures and markets professional, medical, industrial, commercial and consumer products.

Credit Suisse prices tight

Credit Suisse priced $2 billion of 3.8% seven-year senior notes (Baa2/BBB+/A) at Treasuries plus 190 bps on Thursday, according to a market source.

Pricing was at 99.829 to yield 3.828%.

The issue priced on top of guidance and at the tight end of initial talk set in the range of Treasuries plus 190 bps to 195 bps.

Credit Suisse Securities (USA) LLC was the bookrunner.

The financial services company is based in Zurich.

American Airlines upsizes

The session also hosted American Airlines, which priced an upsized $1,061,768,000 offering of class AA, class A and class B pass-through certificates, series 2015-2, according to a market source.

The deal includes $583,226,000 of 3.6% class AA certificates (Aa3/AA) priced at par with a final expected distribution date of Sept. 22, 2027.

Also, there is $239,271,000 of 4% class A certificates (A2/A) sold at par with a final expected distribution date of Sept. 22, 2027.

A $239,271,000 tranche of 4.4% class B certificates (Baa3/BBB) priced at par and carries a final expected distribution date of Sept. 22, 2023.

The deal was upsized from $888.74 million.

Morgan Stanley & Co. LLC is the structuring agent and lead bookrunner.

Citigroup, Credit Suisse, Deutsche Bank Securities Inc., Goldman Sachs, Barclays, BofA Merrill Lynch, BNP Paribas Securities Corp., Credit Agricole Securities and JPMorgan are the joint bookrunners.

Proceeds will be used to acquire equipment notes that will be issued to finance the purchase of three Airbus A319-112 aircraft delivered from April 2015 to June 2015, nine Airbus A321-231 aircraft delivered from April 2015 to August 2015, three Boeing 737-823 aircraft delivered from March 2015 to June 2015, one Boeing 777-323ER aircraft delivered in February 2015 and three Boeing 787-8 aircraft delivered from February 2015 to August 2015.

The commercial airline, which is a subsidiary of AMR Corp., is based in Fort Worth, Texas.

Danske new issue prices

Danske Bank priced $1 billion of 2.75% senior notes (A2/A/A) due 2020 on Thursday with a spread of 125 bps over Treasuries, a market source said.

The Rule 144A and Regulation S notes priced at 99.796 to yield 2.794%.

Bookrunners were BofA Merrill Lynch, Citigroup, Danske, Goldman Sachs, JPMorgan and Wells Fargo.

Based in Copenhagen, Danske is Denmark’s largest bank.

Wyndham sells 10-year notes

Meanwhile, Wyndham Worldwide sold $350 million of 5.1% 10-year senior notes (Baa3/BBB-) on Thursday at Treasuries plus 287.5 bps, according to a market source.

The notes priced at the tight end of talk set in the 300 bps area over Treasuries, tight of initial guidance set in the low-300 bps area over Treasuries.

Bookrunners are JPMorgan, BofA Merrill Lynch and Goldman Sachs.

Proceeds will be used to retire debt, including commercial paper and debt outstanding under a revolving credit facility, and for general corporate purposes.

The hospitality and lodging company is based in Bethesda, Md.

Lloyds unchanged

Lloyds Bank’s 2.7% notes due 2020 were unchanged at 98 bps bid on Thursday, a market source said.

Lloyds sold $1 billion of the notes (A1/A/A+) on Aug. 10 at a spread of 110 bps over Treasuries.

The retail bank is based in London.

Barclays steady

Barclays’ 5.25% notes due 2045 traded flat over the day at 224 bps bid, a market source said.

Barclays sold $1.5 billion of the bonds (Baa3/BBB/A) on Aug. 10 at Treasuries plus 235 bps.

The financial services company is based in London.

HSBC paper eases

HSBC’s 4.25% notes due 2025 eased 2 bps over the trading session to 220 bps bid, according to a market source.

HSBC sold $1.5 billion of the notes (A2/A+) on Aug. 10 at a spread of Treasuries plus 212 bps.

The banking and financial services company is based in London.

JPMorgan widens

JPMorgan Chase’s 3.9% notes due 2025 eased 4 bps to 150 bps bid in secondary trading, a source said.

JPMorgan Chase sold $2.5 billion of the notes (A3/A/A+) on July 14 at 155 bps over Treasuries.

The financial services company is based in New York City.

Bank of America soft

Bank of America’s 3.875% senior notes due 2025 eased 3 bps to 185 bps bid on Thursday, a market source said.

Bank of America sold $2.5 billion of the notes (Baa1/A-/A) on July 27 at a spread of 167 bps over Treasuries.

The financial services company based in Charlotte, N.C.

Morgan Stanley weaker

Morgan Stanley’s 4% notes due 2025 traded 2 bps weaker at 156 bps bid over the session, a source said.

Morgan Stanley sold $3 billion of the notes (A3/A-/A) on July 20 at Treasuries plus 165 bps.

The financial services company is based in New York City.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.