Intuit prices $2 billion notes; United upsizes; Takeda markets deal; inflows nearly double

By Cristal Cody

Tupelo, Miss., June 25 – Investment-grade supply on Thursday included $5.8 billion of bonds from Intuit Inc. and United Airlines, Inc.

Intuit priced a $2 billion registered offering of fixed-rate notes (A3/A-/) during the session 40 basis points tighter than initial talk across all four tranches.

The notes had an overall final book demand of more than $10 billion, a source said.

United Airlines sold $3.8 billion of seven-year guaranteed senior secured notes (Baa3//BBB-) via issuers Mileage Plus Holdings, LLC and Mileage Plus Intellectual Property Assets Ltd. in a Rule 144A and Regulation S deal upsized from $3 billion.

Meanwhile, Takeda Pharmaceutical Co., Ltd. (Baa2/BBB+/) is marketing four tranches of registered dollar-denominated senior notes, as well as euro-denominated bonds, on Thursday and Friday, a source said. The dollar notes include 10-, 20-, 30- and 40-year tranches.

A debut bond offering also is expected from Equitable Holdings, Inc. subsidiary Equitable Financial Life Insurance Co. (A2/A+) after the company held fixed income investor calls on Wednesday.

About $23 billion of investment-grade bonds have priced week to date, near the $25 billion range anticipated for the week.

Primary action is expected to slow to about $10 billion to $15 billion headed into the upcoming Independence Day holiday break, sources report.

Investment-grade corporate fund inflows climbed higher over the past week ended Wednesday from the week prior, according to Refinitive Lipper US Fund Flows.

Inflows totaled $7.99 billion, up from $4.26 billion in the previous week.

Year to date, fund flows have a net outflow of $88 million.

High-grade credit spreads were modestly tighter on the day. The Markit CDX North American Investment Grade 33 index finished the session at a spread of 78.04 bps.

In the secondary market, new issues priced this week have been mixed, a source said.

Xylem Inc.’s $1 billion of green senior notes (Baa2/BBB/BBB) tightened about 4 bps from where the issues priced in two tranches on Wednesday.

The company sold $500 million of 1.95% notes due Jan. 30, 2028 at a spread of 150 bps over Treasuries, tighter than talk in the Treasuries plus 175 bps area.

Xylem priced $500 million of 2.25% notes due Jan. 30, 2031 at Treasuries plus 165 bps.

The notes were talked to print at the 190 bps over Treasuries area.

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