United Technologies sells $11 billion; McDonald’s, Zoetis tap primary; Apache eyed

By Cristal Cody

Tupelo, Miss., Aug. 13 – United Technologies Corp. dominated high-grade primary action on Monday with an $11 billion seven-part offering of senior notes that priced on the tight side of guidance. Two other reported issuers also priced notes.

McDonald’s Corp. reopened two existing issues and priced a new 30-year bond in a $1.8 billion deal.

Zoetis Inc. brought $1.5 billion of senior notes in four tranches.

In other activity, Black Hills Corp. (Baa2/BBB+/BBB+) remarketed notes, while Apache Corp. (Baa3/BBB/BBB) held fixed-income investor calls via BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC, according to market sources.

A deal also remains in the pipeline from Elanco Animal Health Inc. (Baa3/BB+/), which held fixed-income investor calls Thursday for a potential $2.5 billion offering of notes to finance the Greenfield, Ind., animal health products company’s spin-off from Eli Lilly & Co., according to a market source.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities are the arrangers.

About $25 billion to $30 billion of deal volume is expected by syndicate sources this week following more than $33 billion of new issuance last week.

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