Shire prices $12.1 billion; Hess, American Airlines, S&P tap market; credit spreads firm

By Cristal Cody

Eureka Springs, Ark., Sept. 19 – Shire Acquisitions Investments Ireland DAC tapped the high-grade market on Monday with a $12.1 billion four-part offering of senior notes, ending speculation about when the deal would price.

The company priced $3.3 billion of 1.9% three-year notes with a spread of 100 basis points over Treasuries, $3.3 billion of 2.4% five-year notes at Treasuries plus 120 bps, $2.5 billion of 2.875% seven-year notes at 135 bps over Treasuries and $3 billion of 3.2% 10-year notes at 150 bps plus Treasuries.

Shire dropped a planned tranche of floating-rate notes in the deal.

Also on Monday, Hess Corp. priced $1.5 billion of senior notes in two parts.

American Airlines, Inc. sold $813.8 million of class AA and class A pass-through enhanced equipment trust certificates.

S&P Global Inc. placed $500 million of long 10-year senior notes.

About $30 billion of high-grade volume is expected over the week as traders and investors focus on mid-week monetary policy meetings from the Federal Reserve and Bank of Japan.

The Markit CDX North American Investment Grade index closed 1 bp tighter at a spread of 75 bps.

In the secondary market, Gilead Sciences Inc.’s 2.95% senior notes due 2027 traded about 1 bp better earlier in the day.

Ingredion Inc.’s 3.2% senior notes due 2026 traded 10 bps better than where the bonds priced on Thursday.

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