McDonald’s, Burlington Northern, Molson Coors, Nordstrom tap primary; credit spreads soften

By Cristal Cody

Tupelo, Miss., March 6 – Investment-grade bond issuance stayed strong over Monday’s session with new deals from companies that included McDonald’s Corp., Burlington Northern Santa Fe, LLC, Molson Coors Brewing Co., Enable Midstream Partners LP and Nordstrom, Inc.

Volume is expected to be heavy over the week with as much as $50 billion of supply forecast from corporate and SSA issuers.

The Markit CDX North American Investment Grade index eased about 1 basis point on Monday to close at a spread of 61 bps.

McDonald’s prices $2 billion

McDonald’s priced $2 billion of senior notes (Baa1/BBB+/BBB) in three parts on Monday, according to a market source.

McDonald’s sold $600 million in a reopening of its 2.625% notes due Jan. 15, 2022 at a spread of Treasuries plus 62 bps.

The company originally priced $500 million of the notes on Sept. 27, 2011. The total amount now outstanding is $1.35 billion.

McDonald’s priced $850 million of 3.5% notes due March 1, 2027 at a Treasuries plus 107 bps spread.

In the final tranche, the company sold $550 millions of 4.45% notes due March 1, 2047 at a spread of 137 bps over Treasuries.

The tranches priced on the tight side of guidance.

J.P. Morgan Securities LLC, Mizuho Securities USA Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities LLC were the active bookrunners.

Proceeds will be used for general corporate purposes.

The fast food chain is based in Oak Brook, Ill.

Burlington Northern Santa Fe prices

Burlington Northern Santa Fe sold $1.25 billion of senior debentures (A3/A/) in two parts on Monday, according to an FWP filing with the Securities and Exchange Commission.

The company priced $500 million of 3.25% debentures due June 15, 2027 at 99.747 to yield 3.278%, or a spread of Treasuries plus 78 bps.

The $750 million tranche of 4.125% 30-year debentures priced at 98.857 to yield 4.191% and a Treasuries plus 108 bps spread.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc. and Goldman Sachs & Co. were the bookrunners.

Proceeds will be used for general corporate purposes, including debt repayment.

The holding company for railroad transportation subsidiaries is based in Fort Worth, Texas.

Molson Coors brings $1 billion

Molson Coors Brewing priced $1 billion of senior notes (Baa3/BBB-/BBB-) in two tranches on Monday, according to a market source and a news release.

The company sold $500 million of 1.9% notes due March 15, 2019 at a spread of 62.5 bps over Treasuries.

Molson Coors sold $500 million of 2.25% notes due March 15, 2020 at a Treasuries plus 70 bps spread.

Both tranches priced on the tight side of guidance.

BofA Merrill Lynch, Citigroup Global Markets Inc. and UBS Securities LLC were the bookrunners.

Proceeds will be used to repay a portion outstanding under the company’s term loan facility.

The beer brewing company is based in Denver.

Enable Midstream Partners prints

Enable Midstream Partners sold $700 million of 4.4% 10-year senior notes on Monday at a spread of 195 bps over Treasuries, according to an FWP filing with the SEC.

The notes due March 15, 2027 (Baa3/BB+/BBB-) priced at 99.615 to yield 4.448%.

Bookrunners were Citigroup Global Markets Inc., MUFG, RBC Capital Markets Corp., Barclays, Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Mizuho Securities USA Inc., SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments, Inc.

Proceeds will be used for general partnership purposes, including repaying borrowings under the company’s revolving credit facility.

Enable is a Houston-based owner and operator of oil and gas infrastructure for gathering, processing, transportation and storage.

Nordstrom sells new issue, add-on

Nordstrom sold $650 million of senior notes (Baa1/BBB+/) on Monday in an offering that included new 10-year notes and a tap of its 5% senior notes due Jan. 15, 2044, according to an FWP filing with the SEC.

The company sold $350 million of 4% 10-year notes at 99.624 to yield 4.046% and a spread of Treasuries plus 155 bps.

Nordstrom priced a $300 million add-on to its 5% notes due Jan. 15, 2044 at 95.557 to yield 5.312%. The bonds priced with a Treasuries plus 220 bps spread.

The 2044 notes form a single series with the outstanding $665.56 million principal of 5% senior notes Nordstrom issued on May 6, 2014.

BofA Merrill Lynch, Morgan Stanley and U.S. Bancorp Investments were the bookrunners.

Proceeds are expected to be used to repay or retire all $650 million of the company’s 6.25% senior notes due 2018 and for general corporate purposes.

Nordstrom is a fashion specialty retailer based in Seattle.

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