Mizuho, Bristol-Myers, Paccar, Spire tap high-grade primary market; LyondellBasell improves

By Cristal Cody

Tupelo, Miss., Feb. 22 – Investment-grade corporate issuers priced more than $5.7 billion of bonds over Wednesday’s session.

Mizuho Financial Group, Inc. placed a $3.25 billion three-part offering of senior fixed- and floating-rate notes.

Bristol-Myers Squibb Co. tapped the primary market with a $1.5 billion two-tranche sale of senior notes.

Alexandria Real Estate Equities, Inc. sold an upsized $425 million of 11-year notes.

Paccar Financial Corp. brought $400 million of three-year medium-term notes.

In addition, Spire Inc. priced a $150 million offering of seven-year senior notes.

The deal volume on Wednesday brings week to date supply to more than $8 billion.

About $15 billion to $25 billion of high-grade supply was forecast for the week.

The Markit CDX North American Investment Grade index closed mostly unchanged on Wednesday at a spread of 63 basis points.

In the secondary market, the $1 billion offering of 3.5% notes due March 2, 2027 priced on Tuesday by LyondellBasell Industries NV subsidiary LYB International Finance II BV improved.

Mizuho sells $3.25 billion

Mizuho Financial Group sold $3.25 billion of senior fixed- and floating-rate notes (A1/A-/A-) in three tranches on Wednesday, according to a market source.

The company priced $1.25 billion of five-year floating-rate notes at Libor plus 94 bps.

The $1.5 billion tranche of 2.953% five-year notes priced with a spread of 105 bps over Treasuries.

The final $500 million tranche of 3.663% 10-year notes priced with a Treasuries plus 125 bps spread.

Mizuho Securities USA Inc., Goldman, Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. were the bookrunners.

The notes are non-callable, except upon certain changes in Japanese tax law, according to a 424B5 filed with the Securities and Exchange Commission on Wednesday.

Proceeds will be used to make a loan to Mizuho Bank, which will use the funds for general corporate purposes.

Mizuho Financial Group is a Japanese bank holding company based in Tokyo.

Bristol-Myers Squibb notes

Bristol-Myers Squibb priced a $1.5 billion two-tranche offering of senior notes (A2/A+/) on Wednesday, according to a market source and an FWP filed with the Securities and Exchange Commission.

The company sold $750 million of 1.6% two-year notes at 99.92 to yield 1.641% and a spread of 43 bps over Treasuries.

Bristol-Myers priced $750 million of 3.25% 10-year notes at 99.392 to yield 3.322%. The notes priced with a Treasuries plus 90 bps spread.

Both tranches priced on the tight side of guidance.

Goldman Sachs, Morgan Stanley & Co. LLC, BofA Merrill Lynch, Citigroup and JPMorgan were the bookrunners.

Proceeds will be used to make payments under an accelerated share repurchase agreements program with Morgan Stanley and Goldman Sachs and for general corporate purposes.

Bristol-Myers Squibb is a New York City-based biopharmaceutical company.

Alexandria Real Estate notes

Alexandria Real Estate Equities sold an upsized $425 million of 3.95% guaranteed senior notes due Jan. 15, 2028 (Baa2/BBB/) at 99.855 to yield 3.967% and a spread of 155 bps over Treasuries on Wednesday, according to a market source, a company release and an FWP filed with the SEC.

The deal was upsized from $400 million and priced on the tight side of guidance.

Goldman Sachs, Mizuho, Scotia Capital (USA) Inc., Evercore Group, LLC and TD Securities (USA) LLC were the bookrunners.

The notes are fully and unconditionally guaranteed by the company’s subsidiary, Alexandria Real Estate Equities, LP.

The issue includes a par call after October 2027.

Proceeds will be used for general corporate purposes and to reduce the outstanding balance on the company’s unsecured senior line of credit.

Alexandria Real Estate Equities is a real estate investment trust focused on life science and technology campuses based in Pasadena, Calif.

Paccar prices three-year notes

Paccar Financial (A1/A+/) sold $400 million of 1.95% series O three-year medium-term notes at 99.82 to yield 2.012% and a spread of Treasuries plus 50 bps on Wednesday, according to a market source and an FWP filing with the SEC.

The notes due Feb. 27, 2020 priced on the tight side of talk in the Treasuries plus 55 bps area, plus or minus 5 bps.

JPMorgan, MUFG, U.S. Bancorp Investments, Inc. and TD Securities were the bookrunners for the offering.

Paccar Financial is a financing arm of Bellevue, Wash.-based Paccar Inc.

Spire places seven-year notes

Spire priced a $150 million offering of 3.543% senior notes due Feb. 27, 2024 with a spread of 133 bps over Treasuries on Wednesday, according to a market source.

The notes (Baa2/A-/BBB+) priced on the tight side of guidance.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC were the senior managers.

The notes have a make-whole call before April 1, 2019 and a par call on or after Dec. 27, 2023, according to a 424B3 filed with the Securities and Exchange Commission on Wednesday.

A portion of proceeds will be used to repay short-term debt with the majority of proceeds given to the accounts of selling security holders. The security holders have agreed to purchase $143.75 million of the company’s 2014 series A 2% remarketable junior subordinated notes due 2022.

St. Louis-based Spire is a public gas utility holding company.

LyondellBasell improves

LYB International Finance II’s 3.5% notes due 2027 rose to 99.22 in secondary trading on Wednesday, according to a market source.

The notes were seen earlier in the secondary market at 117 bps offered.

The company sold $1 billion of the guaranteed notes (Baa1/BBB) on Tuesday at 98.968 to yield 3.624%, or a spread of 120 bps over Treasuries.

LyondellBasell Industries is a Houston-based chemical company with executive offices in London and incorporated in the Netherlands.

© 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.