Duke Realty sells senior notes; Bank of Ozarks prices; Wells Fargo mostly flat; CDX firms

By Cristal Cody

Eureka Springs, Ark., June 16 – Two investment-grade issuers tapped the market on Thursday, continuing a light trend of primary action expected until after the Brexit vote.

Duke Realty LP brought $375 million of 10-year senior notes to market during the session.

Bank of the Ozarks, Inc. priced $225 million of 10-year fixed-to-floating rate subordinated notes in an offering announced earlier in the week.

The Markit CDX North American Investment Grade index opened the day 2 basis points wider but improved 2 bps over the session to end at a spread of 83 bps.

In the secondary market, Wells Fargo & Co.’s 4.4% subordinated notes due 2046 traded flat to 1 bp weaker earlier in the day.

Duke Realty (Baa2/BBB/) sold $375 million of 3.25% 10-year senior notes at a spread of 180 bps over Treasuries on Thursday, according to a FWP filing with the Securities and Exchange Commission.

The notes due June 30, 2026 priced at 99.07 to yield 3.36%.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. were the bookrunners.

Proceeds will be used to repurchase the company’s $275 million outstanding of 5.95% senior notes due 2017 through a tender offer, to redeem any notes not tendered or all of the notes if the tender offer is not completed, to repay borrowings under its revolving credit facility and for general corporate purposes.

Indianapolis-based Duke Realty owns and operates industrial and healthcare properties.

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