CVS Health draws biggest ever order book for high-grade bond
Final order books for CVS Health’s US$40bn bond that helped fund its purchase of health insurer Aetna were US$114.6bn, the largest ever seen for a US corporate bond sale, according to IFR data.
At one point, the books peaked at over US$120bn but some orders dropped out after the deal launched at tighter spreads.
The biggest demand was seen in the three longest dated tranches. The 30-year tranche saw US$28bn of orders, the 20-year saw US$$18bn in demand and the 10-year saw US$21.7bn.
The rest of the tranches were also well oversubscribed, and saw books as follows: two-year FRN US$3.4bn; two-year FXD US$4.6bn; three-year FRN US$3.7bn; three-year FXD US$8.1bn; five-year US$14.3bn; and seven-year US$12.8bn.
Anheuser-Busch InBev previously held the record for the biggest ever order book.
It attracted just over US$109bn in demand for its US$46bn bond issue in 2016 - the second largest US dollar corporate bond ever - that helped finance its acquisition of SABMiller.