Home Depot, National Rural Utilities, Fannie Mae price; Comcast, Charter Communications ease

By Cristal Cody

Tupelo, Miss., Feb. 3 – High-grade primary action on Wednesday included deals from Home Depot Inc. and National Rural Utilities Cooperative Finance Corp.

Home Depot sold $3 billion of notes (A2/A/A) in three tranches.

National Rural Utilities Cooperative Finance brought to market $700 million of collateral trust bonds in two tranches.

Regions Financial Corp. announced plans to tap the market.

Fannie Mae was in the primary market on Wednesday with a $3 billion sale of 1.375% Benchmark Notes, which priced at a spread of 16.5 basis points plus Treasuries.

The biggest chunk of the deal, 86%, went to investors in the United States, according to Fannie Mae. Asian and European investors took 6% each of the notes, while the remainder went to other investors.

Fund managers took 54% of the deal. Commercial banks gained 16% of the notes. The rest was split among central banks, insurance companies, other investors, state and local governments, corporate investors and pension funds and retail investors.

Also on Wednesday, Canada priced $150 million of 1.276% Canada global notes due Feb. 10, 2020 at par.

Investment-grade bonds traded mostly flat to wider on Wednesday.

Comcast Corp.’s 4.6% senior notes due 2045 eased 1 bp and remain weak in secondary trading.

Charter Communications Inc.’s bonds (Ba1/BBB-) traded 1 bp to 2 bps softer.

The Markit CDX North American Investment Grade index closed unchanged at a spread of 108 bps.

Home Depot prices $3 billion

Home Depot sold $3 billion of senior notes (A2/A/A) in three tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

In the first tranche, Home Depot priced $1.35 billion of 2% notes due April 1, 2021 at 99.644 to yield 2.073%. The notes priced at a spread of 80 bps over Treasuries.

Home Depot sold $1.3 billion of 3% notes due April 1, 2026 at 99.356 to yield 3.074%, or 120 bps over Treasuries.

In the final tranche, the company priced a $350 million add-on to its 4.25% notes due April 1, 2046 at 100.602 to yield 4.214%. The long bonds priced with a spread of 150 bps over Treasuries. The company originally priced $1.25 billion of the notes in June 2015.

Barclays, Goldman Sachs & Co., J.P. Morgan Securities LLC and BofA Merrill Lynch were the bookrunners.

The company plans to use the proceeds to repay its outstanding 5.4% senior notes due March 1, 2016 and for general corporate purposes.

Home Depot is an Atlanta-based home improvement retailer.

National Rural sells trust bonds

National Rural Utilities Cooperative Finance sold $700 million of collateral trust bonds (A1/A/A+) in two tranches on Wednesday, according to FWP filings with the SEC.

The company priced $350 million of 1.65% bonds due Feb. 8, 2019 at 99.881 to yield 1.691% and a spread of 80 bps over Treasuries.

The $350 million tranche of 2.7% bonds due Feb. 15, 2023 priced at 99.727 to yield 2.743%. The bonds printed with a spread of 115 bps over Treasuries.

Mitsubishi UFJ Securities (USA), Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc. were the lead managers.

Proceeds will be used for general corporate purposes, including to repay debt and to fund the early redemption of $300 million of 3.05% collateral trust bonds due March 1, 2016.

National Rural Utilities is a Dulles, Va.-based finance cooperative that provides financing to member organizations and affiliates.

Fannie Mae raises $3 billion

Fannie Mae sold $3 billion of 1.375% Benchmark Notes at 99.626 to yield 1.452% on Wednesday, according to a company release.

The notes due Feb. 26, 2021 priced with a spread of 16.5 bps over Treasuries.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Nomura Securities International, Inc. were the lead managers.

Fannie Mae will apply to list the securities on the EuroMTF market of the Luxembourg Stock Exchange.

The mortgage credit provider is based in Washington, D.C.

Canada sells global note

Canada priced a U.S. dollar-denominated $150 million offering of 1.276% Canada global notes due Feb. 10, 2020 at par on Wednesday, according to a 424B2 filing with the SEC.

Scotia Capital (USA) Inc. arranged the transaction.

Comcast eases

Comcast’s 4.6% notes due 2045 eased 1 bp to 181 bps bid in the secondary market on Wednesday, according to a market source.

Comcast sold $1.7 billion of the bonds (A3/A- /A-) on May 19, 2015 at Treasuries plus 150 bps.

The provider of entertainment, information and communication products and services is based in Philadelphia.

Charter softens

Charter Communications’ 4.908% notes due 2025 eased 1 bp to 303 bps bid, a market source said.

The company sold $4.5 billion of the bonds on July 9, 2015 at a spread of Treasuries plus 260 bps.

Charter Communications’ 6.484% bonds due 2045 traded 2 bps wider at 374 bps bid.

The company sold $3.5 billion of the bonds in the July 9, 2015 offering at Treasuries plus 335 bps.

The Stamford, Conn.-based company provides cable, internet and phone services.

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