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Thursday, 21 June 2018

CVS Health draws biggest ever order book for high-grade bond

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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.

 

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