Nissan, Hospitality Properties, KfW, IADB, Dexia, Kommuninvest price; credit spreads soften

By Cristal Cody

Eureka Springs, Ark., Jan. 10 – Two corporate issuers tapped the investment-grade bond market on Tuesday, while four SSA issuers priced new notes, with total issuance topping out at more than $12 billion over the session.

Nissan Motor Acceptance Corp. came with a $2 billion four-tranche notes deal.

Hospitality Properties Trust priced $600 million of senior notes, including a reopening of a 2013 issue.

In the SSA market, KfW sold $5 billion of five-year global notes.

Inter-American Development Bank priced $3 billion of five-year global notes.

Dexia Credit Local priced $1.5 billion of three-year senior notes.

Also, Kommuninvest I Sverige AB sold $1.25 billion of long three-year notes on Tuesday.

The Markit CDX North American Investment Grade index softened about 1 basis point over the day to a spread of 66 bps.

In the secondary market, Barclays plc’s 4.95% callable senior notes due 2047, which priced last week, were seen about 6 bps better than issuance.

Nissan Motor sells $2 billion

Nissan Motor Acceptance priced $2 billion of notes (A3/A-/) in four tranches on Tuesday, according to a market source.

Nissan Motor sold $250 million of three-year floating-rate notes at Libor plus 58 bps.

The company priced $750 million of 2.25% three-year fixed-rate notes at a spread of 80 bps over Treasuries.

Nissan Motor printed $500 million of five-year floating-rate notes at Libor plus 89 bps.

In the final tranche, the company sold $500 million of 2.8% five-year fixed-rate notes at a spread of 93 bps over Treasuries.

BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC and Societe Generale were the bookrunners.

Nissan Motor Acceptance is an Irving, Texas-based financing and leasing arm of Nissan North America, Inc.

Hospitality Properties prices

Hospitality Properties Trust priced $600 million of fixed-rate senior notes (Baa2/BBB-/) in two tranches on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $200 million in a reopening of its 4.5% notes due June 15, 2023 at 101.215 to yield 4.281%. The notes priced in line with guidance at a spread of 240 bps over Treasuries.

Hospitality Properties Trust originally sold $300 million of the notes on May 30, 2013 at 99.887 to yield 4.514% and a spread of 240 bps plus Treasuries. The total outstanding now is $500 million.

The company’s $400 million offering of 4.95% notes due Feb. 15, 2027 priced at 98.954 to yield 5.083%. The 10-year notes priced with a spread of 270 bps plus Treasuries, on the tight side of guidance.

Citigroup Global Markets Inc., RBC Capital Markets Corp, UBS Securities LLC, Wells Fargo Securities LLC, BBVA Securities Inc., Mizuho Securities USA Inc., PNC Capital Markets LLC, Regions Securities LLC and U.S. Bancorp Investments, Inc. were the bookrunners.

Proceeds will be used to repay debt under the trust’s revolving credit facility, for general business purposes and possibly to redeem some or all of the trust’s outstanding $290 million of series D preferred shares.

The real estate investment trust is based in Newton, Mass.

KfW prices $5 billion

KfW sold $5 billion of 2.125% five-year global notes (Aaa/AAA/) at 99.51 on Tuesday, according to a market source and an FWP filing with the SEC.

The notes due March 7, 2022 priced with a spread of 35.8 bps over Treasuries.

The issue is guaranteed by the Federal Republic of Germany.

Deutsche Bank Securities Inc., Goldman Sachs International and TD Securities (USA) LLC were the managers.

KfW is a government-backed bank based in Frankfurt.

IABD prices $3 billion

Inter-American Development Bank sold $3 billion of 2.125% five-year global notes at mid-swaps plus 28.2 bps on Tuesday, according to a market source.

The notes due Jan. 18, 2022 priced softer than guidance.

BMO Capital Markets Corp., BofA Merrill Lynch, HSBC Securities (USA) Inc. and JPMorgan were the managers.

The provider of development financing for Latin America and the Caribbean is based in Washington, D.C.

Dexia sells $1.5 billion

Dexia Credit Local priced $1.5 billion of 2.25% three-year senior notes (Aa3/AA/) at mid-swaps plus 91.9 bps on Tuesday, according to a market source.

Barclays, Citigroup, Goldman Sachs & Co. and Societe Generale were the bookrunners.

The regional bank, focusing on sustainable development, is based in Brussels.

Kommuninvest prices

Kommuninvest sold $1.25 billion of 1.75% long three-year notes on Tuesday at mid-swaps plus 38.7 bps in a Rule 144A and Regulation S offering, a market source said.

BofA Merrill Lynch, BNP Paribas Securities Corp., Nomura Securities International and TD Securities were the lead managers.

Kommuninvest is an Orebro-based company that offers funding to municipalities of Sweden.

Barclays better

Barclays’ new 4.95% callable senior notes due 2047 were seen in secondary trading early Tuesday at 184 bps offered, according to a market source.

The company sold $1.5 billion of the notes (Baa2/BBB/A) on Jan. 3 at a spread of 190 bps over Treasuries.

Barclays is a London-based banking and financial services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.