Shell, Credit Suisse, Xcel, Caterpillar, Nordstrom bring high-grade supply; Duke eyes primary

By Cristal Cody

Tupelo, Miss., Nov. 4 – Investment-grade issuers brought about $10 billion of new bonds and securities to the primary market on Monday, led by a $4 billion three-part deal from Shell International Finance BV.

Shell International Finance priced the guaranteed senior notes on the tight side of guidance.

Credit Suisse AG, New York Branch brought $2 billion of three-year senior notes.

Xcel Energy Inc. sold $1 billion of senior notes in two tranches.

Baker Hughes, a GE co., LLC and co-issuer Baker Hughes Co-Obligor, Inc. priced $525 million of 10-year senior notes.

Caterpillar Inc. sold $500 million of five-year medium-term notes during the session.

National Oilwell Varco, Inc. tapped the primary market with a $500 million offering of 10-year senior notes.

Also during the session, Nordstrom, Inc. sold $500 million of long 10-year senior notes.

In addition, Commonwealth Edison Co. came with $300 million of 30-year first mortgage bonds.

Investment-grade supply is expected to be strong this week with syndicate sources forecasting about $25 billion to $30 billion of volume.

In other high-grade market activity on Monday, Duke Realty Corp. held fixed income investor calls for a possible deal, a source said.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the investor call arrangers.

The Markit CDX North American Investment Grade 33 index closed the day more than 1 basis point tighter at a spread of 51.5 bps.

Shell prices $4 billion

Shell International Finance sold $4 billion of guaranteed senior notes (Aa2/AA-) in three tranches on Monday, according to a market source.

A $1.25 billion tranche of 2% five-year notes priced at a spread of Treasuries plus 47 bps.

Shell sold $1.5 billion of 2.375% 10-year notes at a 68 bps over Treasuries spread.

In the final tranche, $1.25 billion of 3.125% 30-year notes priced at a spread of 95 bps over Treasuries.

BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, J.P. Morgan and Morgan Stanley were the bookrunners.

The notes are guaranteed by Royal Dutch Shell plc.

The Hague, the Netherlands-based oil and gas company plans to use the proceeds for general corporate purposes.

Credit Suisse prices $2 billion

Credit Suisse, New York Branch sold $2 billion of 2.1% senior notes due Nov. 12, 2021 (A1/A+) on Monday at a spread of Treasuries plus 52 bps, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at 99.988 to yield 2.106%.

Credit Suisse Securities (USA) LLC was the bookrunner.

The New York branch is part of Zurich-based financial services company Credit Suisse Group AG.

Xcel Energy prices $1 billion

Xcel Energy sold $1 billion of senior notes (Baa1/BBB+/BBB+) in two tranches on Monday, according to an FWP filing.

The company priced $500 million of 2.6% 10-year notes at 99.279 to yield 2.682% and a spread of 90 bps plus Treasuries.

A $500 million tranche of 3.5% 30-year notes sold at 99.573 to yield 3.523%. The bonds priced with a spread of 125 bps over Treasuries.

Barclays, Credit Suisse Securities, J.P. Morgan, CIBC Capital Markets, MUFG and TD Securities (USA) LLC were the bookrunners.

The public utility holding company is based in Minneapolis.

Baker Hughes taps market

Baker Hughes priced $525 million of 3.138% 10-year senior notes (A3/A-/) in a registered offering on Monday at par to yield a spread of Treasuries plus 135 bps, according to an FWP filing.

BofA Securities, Inc., Morgan Stanley, Barclays, Citigroup, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and J.P. Morgan were the bookrunners.

Baker Hughes is an oilfield services company based in Houston.

Caterpillar prices $500 million

Caterpillar priced $500 million of 2.15% five-year medium-term notes (A3/A/A) on Monday at a spread of 57 bps over Treasuries, according to an FWP filing.

The notes priced at 99.906 to yield 2.17%.

BofA Securities, Citigroup and MUFG were the bookrunners.

Deerfield, Ill.-based Caterpillar manufactures construction and mining equipment, diesel and natural gas engines and other industry equipment.

National Oilwell sells notes

National Oilwell Varco priced $500 million of 3.6% 10-year senior notes (Baa1/BBB+/) on Monday at a spread of 190 bps over Treasuries, according to an FWP filed with the SEC.

The company sold the notes at 99.265 to yield 3.688%.

Barclays, J.P. Morgan, Wells Fargo Securities, ABN AMRO Securities (USA) LLC, Citigroup, DNB Markets, Inc., HSBC Securities, Scotia Capital (USA) Inc., Skandinaviska Enskilda Banken AB, Standard Chartered Bank and UniCredit Capital Markets LLC were the bookrunners.

National Oilwell is a Houston-based provider of equipment and components used in oil and gas drilling and production operations, oilfield services and supply chain integration services to the upstream oil and gas industry.

Nordstrom in primary

Nordstrom sold $500 million of 4.375% senior notes due April 1, 2030 (Baa2/BBB/) on Monday at a spread of 260 bps over Treasuries, according to an FWP filing.

The notes priced at 99.888 to yield 4.389%.

BofA Securities, J.P. Morgan and U.S. Bancorp Investments Inc. were the bookrunners.

Nordstrom held fixed income investor calls for the offering on Thursday and Friday.

Proceeds will be used to repay or retire all $500 million of the company’s 4.75% senior notes due 2020 and for general corporate purposes.

Nordstrom is a fashion specialty retailer based in Seattle.

Commonwealth Edison prints

Commonwealth Edison sold $300 million of 3.2% 30-year first mortgage bonds (A1/A/A) at 99.217 to yield 3.241%, or a spread of 97 bps over Treasuries, on Monday, according to an FWP filing.

Credit Suisse Securities, PNC Capital Markets LLC, TD Securities and Morgan Stanley were the bookrunners.

Commonwealth Edison is a unit of Chicago-based energy provider Exelon Corp.

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