Sanofi Launches $1 Billion, 3-Year Bond Issue
28 September 2011 - 2:26AM
Dow Jones News
Sanofi (SNY, SAN.FR) launched its $1 billion, three-year bond
issue on Tuesday at a large-than-expected size and a slightly lower
price.
The company, formerly Sanofi-Aventis, will tap the market with
issue to repay existing debt and raise funds for other corporate
purposes. The pharmaceutical company's three-year issue launched at
83 basis points over comparable Treasury yields, about 2 basis
points tighter than initial talk.
Bank of America Merrill Lynch, Citigroup Inc., Natixis and
Deutsche Bank AG are the bookrunners on the deal.
Sanofi, the Paris-based multinational, is among European
corporate issuers that are expected to tap the U.S. market for
funds in what are called "opportunistic" transactions. The current
low borrowing rates offer an attractive opportunity for companies.
This coupled with the improved sentiment among investors makes it a
good time for companies to issue debt.
Other companies that are in the market Tuesday include
McDonald's Corp. (MCD) with a $350 million, 10-year issue; Qwest
Corp.'s benchmark 10-year issue; XL Group PLC's (XL) $400 million
10-year unsecured notes; and Bemis Co. Inc's (BMS) $400 million
10-year senior unsecured notes.
Credit markets Tuesday opened on an upbeat note on hope the
European Union is working on resolving the debt crisis.
On Monday, there was $1.95 billion of newly issued
investment-grade corporate bonds, according to Tradeweb.
The Markit.CDX.NA.IG, the derivatives index used as a gauge of
investor sentiment, continues to tighten and is 4 basis points
firmer on the day, according to Markit data.
-By Prabha Natarajan, Dow Jones Newswires; 212-416-2468;
prabha.natarajan@dowjones.com
XL Fleet (NYSE:XL)
Historical Stock Chart
From Sep 2024 to Oct 2024
XL Fleet (NYSE:XL)
Historical Stock Chart
From Oct 2023 to Oct 2024
Real-Time news about XL Fleet Corp (New York Stock Exchange): 0 recent articles
More XL Group PLC News Articles