Morning Commentary: Analog Devices offers two tranches of notes; Zimmer, Sysco to price

By Devika Patel

Knoxville, Tenn., March 8 – Thursday saw a surge of primary activity in the investment-grade bond market, with five new deals announced.

Analog Devices, Inc., a Norwood, Mass., maker of circuits for electronic equipment, announced an offering of senior notes in two tranches.

Zimmer Biomet Holdings, Inc., a Warsaw, Ind., producer of orthopedic reconstructive products, reported plans to sell fixed-rate and floating-rate notes in two tranches.

And Houston-based food service marketing and distribution company Sysco Corp. plans to offer senior notes in two parts.

In addition, Rosemead, Calif., energy company Edison International Inc. expects to price fixed-rate senior notes due 2028; Ottawa-based Canadian government-owned export credit agency Export Development Canada plans to price fixed-rate U.S. dollar-denominated benchmark notes due March 15, 2023 and Scottsdale, Ariz., real estate investment trust Store Capital Corp. is on tap with fixed-rate senior notes due 2028.

Also, Helsinki, Finland-based credit institution Kommunalbanken AS said its previously priced $500 million add-on to its senior floating-rate notes due March 12, 2021 priced at 100.002, with an order book of more than $550 million.

In its deal, Analog Devices will conduct an offering of senior notes in two tranches.

BofA Merrill Lynch, MUFG, SMBC Nikko and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used to repay a portion of the borrowings under Analog Devices’ five-year term loan.

Zimmer Biomet intends to offer fixed-rate and floating-rate notes in two tranches, with the floaters due in 2021 and the fixed-rate notes due in 2023.

BofA Merrill Lynch, Citigroup Global Markets Inc., MUFG and SMBC Nikko are the bookrunners.

Proceeds from the sale will be used with borrowings under the company’s senior unsecured credit facility and cash on hand to repay at maturity Zimmer’s $1.15 billion of 2% notes due April 1, 2018.

Sysco reported that it will sell senior notes in two tranches.

Goldman Sachs & Co., J.P. Morgan Securities LLC, TD Securities (USA) LLC and Wells Fargo are the bookrunners.

Proceeds will be used to fund a tender offer to purchase for cash up to $200 million of the company’s 6.625% senior notes due 2039, its 7.16% debentures due 2027, its 6.5% debentures due 2028 and its 5.375% senior notes due 2035.

Edison International intends to sell 10-year senior notes.

Barclays, JPMorgan, Wells Fargo, Morgan Stanley & Co. LLC and TD Securities (USA) LLC are the bookrunners.

Proceeds will be used to repay borrowings under Edison’s term loan, to repay commercial paper borrowings and for general corporate purposes.

Export Development Canada is preparing to price fixed-rate notes due March 15, 2023. The indications of interest are in excess of $1.2 million.

The spread has been set at mid-swaps plus 10 basis points, in line with talk.

Barclays, BNP Paribas Securities Corp., BofA Merrill Lynch and CIBC World Markets Inc. are the bookrunners for the Securities and Exchange Commission-registered offering.

Store Capital will sell fixed-rate notes due 2028.

Goldman Sachs, Morgan Stanley and Wells Fargo are the bookrunners.

Proceeds will be used for property acquisitions, to repay debt under the company’s revolving credit facility, for working capital and for other general corporate purposes.

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