Progressive, Cimarex Energy, MetLife, Essex, Eaton Vance price; Duke Energy stable

By Cristal Cody

Tupelo, Miss., April 3 – Several high-grade bond issuers tapped the primary market on Monday.

Progressive Corp. brought $850 million of 30-year guaranteed senior notes.

Cimarex Energy Co. placed $750 million of 10-year senior notes.

MetLife Global Funding I came with a $500 million offering of five-year notes.

Essex Portfolio, LP raised $350 million in a 10-year guaranteed senior notes deal.

Eaton Vance Corp. also priced $300 million of 10-year notes on Monday.

About $20 billion to $25 billion of supply is expected over the week by syndicate sources.

The Markit CDX North American Investment Grade index was modestly wider on Monday at a spread of 67 basis points.

In the secondary market, Duke Energy Ohio, Inc.’s 3.7% first mortgage bonds due June 15, 2046 priced in March were flat but remain better than issuance.

Progressive sells $850 million

Progressive priced $850 million of 4.125% 30-year guaranteed senior notes on Monday at 99.879 to yield 4.132%, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes due April 15, 2047 (A2/A/A) priced with a spread of 115 bps over Treasuries. The notes were talked to price in the Treasuries plus 115 bps area, plus or minus 5 bps.

The bookrunners were Credit Suisse Securities (USA) LLC and BofA Merrill Lynch.

Proceeds will be used to redeem all $563.7 million of the company’s 6.7% fixed-to-floating rate junior subordinated debentures due 2067.

Progressive is an insurance company based in Mayfield Village, Ohio.

Cimarex raises $750 million

Cimarex Energy sold $750 million of 3.9% 10-year senior notes on Monday at a spread of 158 bps over Treasuries, on the tight side of guidance, according to a market source and an FWP filing with the SEC.

The notes due May 15, 2027 (Baa3/BBB-/) priced at 99.748 to yield 3.93%.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., MUFG and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to fund the purchase price and interest payable for all 5.875% notes due May 1, 2022 tendered and accepted under a tender offer and for the redemption of any of the notes that remain outstanding after the tender offer.

Cimarex is an oil and gas company based in Denver.

MetLife sells $500 million

MetLife Global Funding I priced $500 million of 2.65% five-year notes (Aa3/AA-/) on Monday at a spread of 78 bps over Treasuries, according to a market source.

The notes due April 8, 2022 priced on the tight side of guidance in the Treasuries plus 80 bps area, plus or minus 2 bps.

BofA Merrill Lynch, Credit Suisse Securities, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities were the bookrunners.

The issuer is a financing arm of New York City-based insurance and employee benefits company MetLife Inc.

Essex Portfolio in primary

Essex Portfolio sold $350 million of 3.625% 10-year guaranteed senior notes with a spread of Treasuries plus 135 bps on Monday, according to an FWP filing with the SEC.

The notes due May 1, 2027 (Baa1/BBB+/BBB+) priced at 99.423 to yield 3.694%.

The bookrunners were Wells Fargo Securities, Citigroup Global Markets Inc., J.P. Morgan Securities, MUFG, U.S. Bancorp and Jefferies LLC.

The notes will be guaranteed by Essex Property Trust, Inc.

Proceeds will be used to repay debt under Essex’s $1 billion unsecured line of credit facility and its $25 million unsecured working capital line of credit facility and for other general corporate and working capital purposes.

Based in Palo Alto, Calif., Essex Portfolio is a real estate investment trust.

Eaton Vance prints

Eaton Vance priced $300 million of 3.5% 10-year notes on Monday at 99.632 to yield 3.544%, according to a market source and an FWP filing with the SEC.

The notes due April 6, 2027 (A3/A-/) priced on the tight side of talk at a spread of 120 bps over Treasuries.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, Citigroup Global Markets and Wells Fargo Securities were the lead managers.

Eaton Vance is an investment management firm based in Boston.

Duke Energy Ohio steady

Duke Energy Ohio’s 3.7% first mortgage bonds due June 15, 2046 (A2/A/) were unchanged in secondary trading on Monday at 106 bps bid, according to a market source.

The bonds priced in a $100 million reopening on March 22 at 93.462 to yield 4.085% and a spread of 107 bps over Treasuries.

The company originally sold $250 million of the bonds at 99.301 to yield 3.739%, or 125 bps over Treasuries, on June 20, 2016.

The Charlotte, N.C.-based company generates, transmits, distributes and sells electricity and is a wholly owned subsidiary of Duke Energy Corp.

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