Rogers, Kimco, EQT, Lazard, Southwest Airlines, Ryder, RBC price; CDX eases; Honeywell flat

By Cristal Cody

Eureka Springs, Ark., Nov. 1 – High-grade primary action remained active over the session on Tuesday in the last week before the U.S. presidential election.

Rogers Communications Inc. priced a $500 million offering of 10-year senior notes.

Kimco Realty Corp. brought a $750 million two-part offering of notes.

EQT Midstream Partners, LP sold $500 million of 10-year senior bonds.

Lazard Group LLC priced $300 million of senior notes due 2027.

Southwest Airlines Co. came to the market with a $300 million offering of 10-year notes.

Ryder System, Inc. raised $300 million in an offering of five-year medium-term notes.

Also, details emerged about Royal Bank of Canada’s $120 million of two-year senior floating-rate notes priced on Friday and Monday.

The Markit CDX North American Investment Grade index softened about 1 basis point to close at a spread of 80 bps.

In the secondary market, Honeywell International Inc.’s new 2.5% notes due 2026 were quoted flat but softer than issuance.

Rogers Communications prices

Rogers Communications priced a $500 million offering of 2.9% 10-year senior notes with a spread of 125 bps over Treasuries on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The notes (Baa1/BBB+/BBB+) priced at 98.354 to yield 3.092%.

BMO Capital Markets, J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc. and Scotia Capital (USA) Inc. were the bookrunners.

The notes are guaranteed by subsidiary Rogers Communications Canada Inc.

Proceeds will be used to repay a portion of outstanding advances under the company's bank credit facilities and borrowings under the securitization program that it entered into on Dec. 31, 2012. Any remaining proceeds will be used for general corporate purposes.

Rogers Communications is a Toronto-based communications and media company.

Kimco prices $750 million

Kimco Realty sold $750 million of notes (Baa1/BBB+/) in two parts on Tuesday, according to an FWP filing with the SEC.

The company priced $400 million 2.7% notes due March 1, 2024 at 99.489 to yield 2.778%, or a spread of 117 bps over Treasuries.

Kimco Realty sold $350 million of 4.125% notes due Dec. 1, 2046 at 99.213 to yield 24.171%, or Treasuries plus 160 bps.

Citigroup Global Markets Inc., BofA Merrill Lynch, RBC Capital Markets LLC, Wells Fargo Securities LLC, Jefferies LLC, UBS Securities LLC and U.S. Bancorp Investments, Inc. were the bookrunners.

Proceeds will be used for general corporate purposes, including to repay up to $400 million of a $650 million term loan due January 2017 and to prefund 2017 debt maturities.

Kimco Realty is a New York-based publicly traded owner and operator of open-air shopping centers.

EQT sells $500 million

EQT Midstream Partners sold $500 million of 4.125% 10-year senior notes (Ba1/BBB-/BBB-) at 99.191 to yield 4.224%, according to an FWP filing with the SEC on Tuesday.

The notes priced with a spread of 240 bps over Treasuries.

The bookrunners were Deutsche Bank Securities Inc., BofA Merrill Lynch, MUFG, BNP Paribas Securities Corp., PNC Capital Markets LLC, Scotiabank, SunTrust Robinson Humphrey, U.S. Bancorp and Wells Fargo.

Proceeds will be used to repay debt outstanding under the company’s credit facility and for general partnership purposes.

EQT Midstream Partners is a Pittsburgh-based energy company.

Lazard prices $300 million

Lazard Group priced $300 million of 3.625% of long 10-year senior notes at 99.569 to yield 3.676% on Tuesday, according to an FWP filing with the SEC.

The notes due March 1, 2027 (Baa3/A-/BBB+) priced with a spread of 185 bps over Treasuries.

Citigroup and Goldman Sachs & Co. were the bookrunners.

Proceeds will be used to redeem or retire $98.4 million outstanding of the company’s notes due 2017 and for general corporate purposes, including to repurchase shares of Lazard’s class A common stock.

Lazard announced on Tuesday that its board of directors has authorized additional share repurchases of $236 million through Dec. 31, 2018, which brings the total share repurchase authorization of the company to $400 million.

Lazard is a New York-based financial advisory and asset management firm.

Southwest Airlines in primary

Southwest Airlines priced $300 million of 3% 10-year notes with a spread of 127 bps plus Treasuries on Tuesday, according to an FWP filing with the SEC.

The notes (Baa1/BBB/BBB+) priced at 99.228 to yield 3.09%.

Morgan Stanley, BNP Paribas and Barclays were the bookrunners.

Proceeds will be used for general corporate purposes.

Dallas-based Southwest Airlines is a passenger airline company.

Ryder sells five-years

Ryder System priced $300 million of 2.25% five-year medium-term notes with a spread of 97 bps over Treasuries, according to a market source.

The notes (Baa1//A-) priced on the tight side of guidance.

BofA Merrill Lynch, BNP Paribas, Mizuho Securities USA Inc. and RBC Capital Markets were the bookrunners.

Ryder System is a Miami-based truck rental and fleet management company.

RBC taps market twice

Royal Bank of Canada priced $120 million of series G two-year senior floating-rate notes at par to yield Libor plus 40 bps in two deals, according to a 424B2 filed on Monday with the SEC.

The bank sold $100 million of the notes due Oct. 31, 2018 on Friday and $20 million of the notes on Monday.

RBC Capital Markets was the bookrunner.

The rate on the notes will reset beginning Jan. 31, 2017. The initial interest rate for the period before the Jan. 31, 2017 interest payment date is 1.28594%.

RBC is a Toronto-based financial services company.

Honeywell steady

Honeywell International’s 2.5% notes due 2026 traded flat earlier on Tuesday at 82 bps offered, according to a market source.

Honeywell sold $1.5 billion of the notes (A2/A/A) on Oct. 24 at a spread of Treasuries plus 78 bps.

Honeywell is a technology and manufacturing company based in Morristown, N.J.

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