Primary volume surges; Intel, Sherwin-Williams, American Express bring deals; CDX firms

By Cristal Cody

Tupelo, Miss., July 28 – Investment-grade issuers hit the primary market in force on Tuesday with new deals priced from companies including Intel Corp., Sherwin-Williams Co., American Express Credit Corp., Citizens Financial Group, Inc., Janus Capital Group Inc. and Spirit Airlines, Inc.

Intel sold $1,007,000,000 of 4.9% 30-year senior notes at par.

Sherwin-Williams brought an upsized $800 million two-part offering of 10-year and 30-year senior notes.

American Express Credit sold $500 million of three-year senior medium-term floating-rate notes at par.

Janus Capital Group priced $300 million of 4.875% 10-year senior notes over the session.

Citizens Financial Group sold $250 million of 4.35% subordinated notes due Aug. 1, 2025 at par.

Spirit Airlines priced $576,581,000 of pass-through certificates on Tuesday in two parts.

Unilever Capital Corp. and Bank of Montreal also were expected to tap the market.

In the secondary market earlier in the day, long bonds from Intel and CVS Health Corp. traded 1 basis point to 2 bps weaker.

Credit spreads improved over the session. The Markit CDX North American Investment Grade index firmed 2 bps to a spread of 71 bps.

The CDX has ranged from a low of 60.4 bps to a high spread of 76.4 bps over the past 12 months, according to a Barclays Bank plc report on Tuesday.

Intel prices $1 billion

Intel sold $1,007,000,000 of 4.9% 30-year senior notes at par on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

Cathay United Bank Co., Ltd., MasterLink Securities Corp. and Yuanta Securities Co., Ltd. were the bookrunners.

Proceeds will be used to fund the costs for its acquisition of Altera Corp.

Intel is a semiconductor chip maker based in Santa Clara, Calif.

Sherwin-Williams senior notes

Sherwin-Williams priced an upsized $800 million two-part offering of 10-year and 30-year senior notes (A2//A) on Tuesday, according to an FWP filing with the SEC.

In the first tranche, the company sold $400 million of 3.45% notes due Aug. 1, 2025 at 99.941 to yield 3.457%. The notes priced with a spread of 120 bps plus Treasuries.

Sherwin-Williams also sold $400 million of 4.55% notes due Aug. 1, 2045 at 99.4 to yield 4.587%. The notes priced at Treasuries plus 160 bps.

The deal was upsized by $50 million.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.

Proceeds will be used for general corporate purposes, including to repay a portion of outstanding short-term debt.

Sherwin-Williams is a Cleveland-based developer, manufacturer and distributor of paints and related products.

American Express floaters

American Express Credit sold $500 million of three-year senior medium-term floating-rate notes at par on Tuesday, according to an FWP filing with the SEC.

The series F notes due July 31, 2018 priced to yield a spread of Libor plus 61 bps.

Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and Wells Fargo Securities were the bookrunners.

American Express Credit is a New York-based subsidiary of credit card issuer and travel-related services provider American Express Co.

Janus Capital 10-year notes

Janus Capital Group priced $300 million of 4.875% 10-year senior notes (Baa3//) on Tuesday, according to a company statement.

The notes are due Aug. 1, 2025.

JPMorgan, Citigroup Global Markets and Wells Fargo Securities were the managers.

Proceeds will be used with other funds to repurchase the company¡¯s outstanding $344.5 million of 6.7% notes due June 15, 2017 and for general corporate purposes.

Janus Capital is a Denver-based global investment firm.

Citizens Financial prices $250 million

Citizens Financial Group priced $250 million of 4.35% subordinated notes due Aug. 1, 2025 at par on Tuesday, according to an FWP filing with the SEC.

The notes (/BBB/BBB) priced with a spread of 210 bps over Treasuries.

BofA Merrill Lynch was the lead manager.

Proceeds will be used to repurchase $250 million of the company¡¯s common stock from RBS Group.

Citizens Financial Group is a Providence, R.I.-based retail bank holding company.

Spirit pass-through certificates

Spirit Airlines priced $576,581,000 of pass-through certificates on Tuesday in two parts, according to FWP filings with the SEC.

Spirit Airlines sold $455,622,000 of 4.1% series 2015-1 class A pass-through certificates due Oct. 1, 2029 (/A/A) at par. The certificates have an initial average life of 8.6 years.

In the second part, the company priced $120,959,000 of 4.45% series 2015-1 class B pass-through certificates due Oct. 1, 2025 (/BBB-/BBB+) at par with an initial average life of 5.5 years.

Citigroup Global Markets and Morgan Stanley & Co. LLC were the lead managers. Credit Suisse Securities (USA) LLC was a bookrunner.

Proceeds from the deal will be used to acquire related series of equipment notes to be issued by Spirit Airlines for new aircraft.

Spirit Airlines is a Miramar, Fla.-based low-fare airline service provider.

Intel eases

In the secondary market, Intel’s 4.9% bonds due 2045 priced in the previous week widened 2 bps to 182 bps offered, according to a market source earlier on Tuesday.

The company priced a $2 billion tranche of the bonds (A1/A+/ A+) at Treasuries plus 185 bps on July 22 as part of a $7 billion deal.

Intel is a semiconductor chip maker based in Santa Clara, Calif.

CVS modestly softer

CVS Health’s 5.125% bonds due 2045 were seen about 1 bp weaker in trading earlier in the day at 184 bps offered, a source said.

The company sold $3.5 billion of the bonds (Baa1/BBB+) on July 13 at a spread of Treasuries plus 190 bps as part of a $15 billion six-part offering of senior notes.

The pharmacy retailer is based in Scarsdale, N.Y.

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