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Amgen, CVS propel bonds sales to monthly record.

Amgen, CVS Propel Bonds Sales to Monthly Record. Amgen Inc. (Thousand Oaks CA), the world's largest biotech company, and drug retailer CVS Corp. (Woonsocket RI) led borrowers to a record month as issuance accelerated on signs the economy is improving from a slow first quarter. U.S. corporations sold a record $141 billion in the month of May. Sales shattered the previous high of $131.8 billion in November, according to data compiled by Bloomberg. Amgen issued $4 billion of notes to buy back stock, and CVS offered $5.5 billion in the biggest investment-grade sale this year. The extra yield investors demand to own corporate bonds rather than government debt fell to a low of 131 basis points in May from the high this year of 144 basis points in March, according to Merrill Lynch & Co. The so-called spread came within 5 basis points from the lowest it's been in nine years. A basis point is 0.01 percentage point.

The CVS sale consisted of $1.75 billion of notes due in 2010 that pay interest at 30 basis points more than the three-month London interbank offered rate (LIBOR); $1.75 billion of 5.75% securities due in 2017; $1 billion of 6.25% bonds due in 2027; and $1 billion of so-called hybrid bonds due in 2062. Amgen sold $2 billion of 18-month floating-rate notes; $1.1 billion of 5.85% 10-year fixed-rate securities and $900 million of 6.375% 30-year bonds.
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Title Annotation:TOP STORIES
Publication:MondayMorning
Article Type:Brief article
Date:Jun 4, 2007
Words:244
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