Aetna, Citigroup, Brixmor, Nasdaq, RBC tap bond market; Mylan tightens; Pfizer mixed

By Cristal Cody

Eureka Springs, Ark., June 2 – High-grade issuers priced nearly $18 billion of new bonds on Thursday, with the first two sessions of June already seeing more than $20 billion of volume.

On Thursday, Aetna Inc. priced a $13 billion eight-tranche offering of senior notes.

In addition, Citigroup Inc. sold $3 billion in three tranches of notes.

Brixmor Operating Partnership LP priced $600 million of 10-year senior notes during the session.

Nasdaq, Inc. brought a $500 million offering of 10-year senior notes to the primary market.

Royal Bank of Canada also priced $500 million of two-year senior medium-term notes.

In the secondary market, Mylan NV’s $6.5 billion senior notes (Baa3/BBB-/BBB-) that priced in four tranches on Tuesday traded about 3 basis points to 9 bps tighter earlier in the day.

Pfizer Inc.’s $5.6 billion notes (A1/AA/A+) placed in five parts on Tuesday traded mostly flat to about 6 bps better early Thursday.

The Markit CDX North American Investment Grade index closed mostly unchanged at a spread of 78 bps.

Aetna prices $13 billion

Aetna priced $13 billion in eight tranches of senior notes (Baa2/A/A-) on Thursday, according to a market source.

The company sold $500 million of one-year floating-rate notes at Libor plus 65 bps, on the tight side of guidance of Libor plus 70 bps, plus or minus 5 bps.

Aetna priced $1 billion of 1.7% two-year notes at 85 bps over Treasuries, compared to talk of Treasuries plus 90 bps, plus or minus 5 bps.

The $1.65 billion tranche of 1.9% three-year notes priced with a spread of 90 bps over Treasuries. The notes were talked at Treasuries plus 95 bps, plus or minus 5 bps.

The company placed $1.85 billion of 2.4% five-year notes at Treasuries plus 105 bps, on the tight side of talk of Treasuries plus 110 bps, plus or minus 5 bps.

The $1.3 billion tranche of 2.8% seven-year notes priced at 120 bps over Treasuries. The notes were guided at Treasuries plus 125 bps, plus or minus 5 bps.

Aetna sold $2.8 billion of 3.2% 10-year notes with a spread of 145 bps over Treasuries. The notes were talked to price at Treasuries plus 150 bps, plus or minus 5 bps.

The company placed $1.5 billion of 4.25% 20-year notes at 170 bps over Treasuries, on the tight side of talk of Treasuries plus 175 bps, plus or minus 5 bps.

In the final tranche, Aetna sold $2.4 billion of 4.375% 30-year notes at 180 bps over Treasuries. The bonds were guided at 185 bps over Treasuries, plus or minus 5 bps.

The bookrunners were Citigroup Global Markets Inc. and UBS Securities LLC.

Proceeds will be used to fund a $3.2 billion term loan and the cash portion of the purchase price of the company’s merger with Humana Inc., according to a 424B3 filing with the Securities and Exchange Commission.

If the merger is not completed, proceeds from the floating-rate notes and two series of fixed-rate notes will be used for general corporate purposes.

Aetna is a diversified health care benefits company based in Hartford, Conn.

Citi raises $3 billion

Citigroup sold $3 billion in three tranches of notes (Baa1/BBB+/A) on Thursday, according to a market source.

Citigroup priced $1 billion of three-year floating-rate notes at Libor plus 93 bps.

The company sold $1 billion of 2.05% three-year fixed-rate notes on top of guidance at Treasuries plus 105 bps.

In the final tranche, Citigroup priced a $1 billion add-on to its 2.7% notes due March 30, 2021 in line with guidance at a spread of 125 bps over Treasuries. Citigroup originally sold $1.5 billion of the notes on March 22 at 133 bps over Treasuries. The total outstanding is $2.5 billion.

Citigroup was the bookrunner.

Citigroup is a financial services company based in New York.

Brixmor prices $600 million

Brixmor Operating Partnership sold $600 million of 4.125% 10-year senior notes with a spread of 240 bps over Treasuries, according to a FWP filing with the SEC on Thursday.

The notes (Baa3/BBB-/BBB-) priced at 99.328 to yield 4.208%.

Citigroup, BofA Merrill Lynch, Wells Fargo Securities LLC, Jefferies, J.P. Morgan Securities LLC and RBC Capital Markets, LLC were the bookrunners.

Proceeds will be used to repay debt under the company’s $1.25 billion unsecured revolving credit facility and for general corporate purposes.

Brixmor Operating is a subsidiary of New York-based real estate investment trust Brixmor Property Group Inc.

Nasdaq brings $500 million

Nasdaq sold $500 million of 10-year senior notes at 99.906 to yield 3.861% on Thursday, according to a FWP filing with the SEC.

The notes (Baa3/BBB) priced with a spread of 205 bps over Treasuries.

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

Proceeds will be used to help fund the $1.1 billion cash portion of the company’s acquisition of the equity interests in U.S. Exchange Holdings, Inc. and for general corporate purposes.

The financial services company is based in New York City.

RBC prints $500 million

Royal Bank of Canada priced $500 million of 1.5% senior medium-term notes with a spread of 65 bps over Treasuries on Thursday, according to a FWP filing with the SEC.

The series G notes due June 7, 2018 priced at 99.943 to yield 1.529%.

RBC Capital Markets was the bookrunner.

Royal Bank of Canada is based in Toronto.

Mylan tightens

Mylan’s 3.15% notes due 2021 were quoted at 173 bps offered early Thursday, according to a market source.

The notes priced on Tuesday in a $2.25 billion tranche at Treasuries plus 180 bps.

The company’s 3.95% notes due 2026 were quoted at 217 bps offered in secondary trading.

Mylan sold $2.25 billion of the 10-year notes in Tuesday’s sale at Treasuries plus 220 bps.

The global pharmaceutical company is based in Hatfield, England.

Pfizer mixed

Pfizer’s 1.95% notes due 2021 were unchanged in the secondary market earlier on Thursday at 60 bps offered, a source said.

The company sold $1.15 billion of the notes on Tuesday at Treasuries plus 60 bps.

Pfizer’s 2.75% notes due 2026 traded better at 84 bps offered.

The notes priced in a $1.25 billion tranche on Tuesday at 90 bps over Treasuries.

Pfizer is a biopharmaceutical company based in New York.

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