Kilroy, W.R. Berkley upsize; Symetra also prices; Verizon flat; Bank of America mixed

By Aleesia Forni and Cristal Cody

Virginia Beach, July 30 – A trio of issuers made their way to the primary market on Wednesday, pricing $1 billion of new investment-grade paper.

Market activity was mostly quiet during the session as the Federal Reserve’s Federal Open Market Committee wrapped up the final day of its two-day meeting.

Kilroy Realty LP sold the largest offering of the day, bringing to market $400 million of 15-year senior notes.

The deal priced at the tight end of talk and garnered an orderbook that was more than two times oversubscribed.

In other primary action, W.R. Berkley Corp. priced $350 million of 30-year bonds, while Symetra Financial Corp. sold a $250 million 10-year offering.

The day’s new issues from Kilroy and W.R. Berkley were met with solid investor demand, both upsizing their bond offerings by $100 million.

So far this week, around $6.2 billion of supply has hit the investment-grade primary market.

With Friday’s nonfarm payroll data, issuance is expected to remain on the light side going forward this week.

Investment-grade bond spreads remained stable over the day, a market source said.

The Markit CDX North American Investment Grade series 22 index was unchanged at a spread of 60 basis points.

In the secondary market, Verizon Communications Inc.’s 4.15% senior notes due 2024 headed out flat, according to a market source.

Bank of America Corp.’s notes (Baa2/A-/A) traded unchanged to tighter over the session, a source said.

Kilroy upsizes

In the day’s largest high-grade bond offering, Kilroy Realty sold $400 million of 4.25% 15-year senior notes with a spread of Treasuries plus 180 bps.

The notes (Baa3/BBB-/) priced at the tight end of talk, a market source said.

Pricing was at 98.882 to yield 4.352%.

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

Kilroy plans to use proceeds from the offering for general corporate purposes, which may include acquiring properties, funding development and redevelopment projects and repaying outstanding debt.

The notes are guaranteed by Kilroy Realty Corp.

Kilroy is a Los Angeles-based real estate investment trust.

W.R. prices tight

W.R. Berkley sold an upsized $350 million offering of 4.75% 30-year senior notes (Baa2/BBB+/) on Wednesday at the tight end of talk at 150 bps over Treasuries, according to an informed source and an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.494 to yield 4.782%.

JPMorgan, Morgan Stanley & Co. LLC and Wells Fargo Securities were the bookrunners.

Proceeds will be used to repay the company’s $200 million of 5.6% senior notes due May 15, 2015 and for general corporate purposes.

Greenwich, Conn.-based W.R. Berkley is an insurance holding company.

Symetra new issue

Also on Wednesday, Symetra Financial priced $250 million of 4.25% senior notes with a spread of Treasuries plus 175 bps, according to an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.585 to yield 4.302%.

The bookrunners were JPMorgan and Wells Fargo Securities.

Proceeds will be used for general corporate purposes, including working capital, capital expenditures, repayment of debt, stock repurchases and dividends.

Symetra is a diversified financial services company based in Bellevue, Wash.

Verizon unchanged

Verizon’s 4.15% notes due 2024 (Baa1/BBB+/A-) traded flat at 118 bps offered during the session, a market source said.

The notes have widened from the 113 bps area on Monday.

Verizon sold $1.25 billion of the 10-year notes on March 10 at 140 bps plus Treasuries.

The telecommunications company is based in New York City.

Bank of America mixed

Bank of America’s 2.65% notes due 2019 (Baa2/A-/A) firmed 6 bps to 74 bps offered, according to a market source.

The five-year notes priced in a $2.5 billion offering on March 27 at Treasuries plus 97 bps.

Bank of America’s 4% notes due 2024 traded unchanged at 124 bps offered, the source said.

The bank sold $2.75 billion of the notes in the March offering at Treasuries plus 137 bps.

The financial services company is based in Charlotte, N.C.

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