Deal supply thins; 3M prices $2 billion; Northwestern Mutual, Newcastle Coal tap primary

By Cristal Cody

Tupelo, Miss., Sept. 21 – 3M Co. led the day’s deal action with a $2 billion three-tranche offering of high-grade notes in light supply on Thursday.

The three tranches priced more than 10 basis points better than initial price thoughts and on the tight side of guidance.

Also in the primary market, Northwestern Mutual Life Insurance Co. sold $1.2 billion of 30-year surplus notes.

In addition, Newcastle Coal Infrastructure Group Pty Ltd. priced $500 million of 10-year senior secured notes.

The Markit CDX North American Investment Grade 29 index eased about 1 bp to close the day at a spread of 60 bps.

3M raises $2 billion

3M priced a $2 billion three-tranche offering of series F senior medium-term notes (A1/AA-/) on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company priced $650 million of 2.25% notes due March 15, 2023 at 99.934 to yield 2.263% and a spread of 37 bps over Treasuries.

3M sold $850 million of 2.875% 10-year notes at 99.386 to yield 2.946%, or a spread of 67 bps over Treasuries.

The $500 million tranche of 3.625% 30-year bonds priced at 99.058 to yield 3.677% and a spread of 87 bps plus Treasuries.

The 2.875% notes were initially talked in the 55 bps to 60 bps over Treasuries area and later tightened to the 40 bps area.

Initial price thoughts on the 10-year notes were in the Treasuries plus 80 bps to 85 bps area and firmed to the 70 bps area in later guidance.

The 30-year notes were initially talked in the Treasuries plus 100 bps to 105 bps spread area and later guided in the 90 bps area.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Barclays and Morgan Stanley & Co. LLC were the bookrunners.

3M is a Maplewood, Minn.-based global company that produces products including Post-it notes and Scotch tape.

Northwestern Mutual prices

Northwestern Mutual Life Insurance priced $1.2 billion of 3.85% surplus notes due Sept. 30, 2047 (Aa2/AA/) at a spread of Treasuries plus 107 bps on Thursday, according to market sources.

The notes priced on the tight side of guidance in the Treasuries plus 110 bps area.

BofA Merrill Lynch, J.P. Morgan Securities and Morgan Stanley were the bookrunners.

Northwestern Mutual Life Insurance is a Milwaukee-based financial services and mutual insurance company.

Newcastle Coal sells notes

Newcastle Coal Infrastructure Group priced $500 million of 4.4% 10-year senior secured notes (/BBB/BBB-) on Thursday at a spread of Treasuries plus 215 bps, according to market sources.

The notes were initially talked to price in the Treasuries plus 240 bps area.

Citigroup Global Markets Inc. and J.P. Morgan Securities were the bookrunners.

The company is a Kooragang, NSW, Australia-based owner and operator of coal export terminals.

© 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.