The Motley Fool Previous Page

A Big Deal in Corporate Bonds

Russ Krull
November 12, 2012

Last week was a busy one for U.S. dollar-denominated corporate-bond issues. Companies floated more than $36 billion of new borrowing, with just one issuer accounting for more than a third of the total. Borrowers based outside the U.S. were responsible for nearly $11 billion. Here's a rundown on a few of the deals.

The week's biggest borrower by far was Abbott Labs (NYSE: ABT  ) , soon to be spin-off AbbVie, with $14.7 billion spread over six tranches ranging from three- to 30-year maturities. AbbVie will be using the money to "to make a cash distribution to Abbott, to pay related fees and expenses and for general corporate purposes." Abbott will be using that distribution to finance tender offers for outstanding debt.

Dow Chemical (NYSE: DOW  ) easily made the billion-dollar club with $2.5 billion split between 10- and 30-year paper. The company is using the money for "repaying or refinancing indebtedness or other obligations as well as for general corporate purposes, which may include funding pension contributions, funding capital expenditures, financing working capital, and pursuing growth initiatives." That sure narrows it down.

Brazilian bank Itau Unibanco (NYSE: ITUB  ) tapped the markets for $1.7 billion of 10-year debt and is using the money to beef up its capital ratio.

E*Trade (Nasdaq: ETFC