Johnson & Johnson sells $4.5 billion bonds; American Electric, Suncor NiSource, KfW price

By Cristal Cody

Tupelo, Miss., Nov. 8 – Johnson & Johnson tapped the high-grade primary market on Wednesday with a $4.5 billion five-tranche offering of notes.

In addition, American Electric Power Co., Inc. priced a $1 billion two-part offering of senior notes.

Suncor Energy Inc. sold $750 million of 30-year notes in an offering that was upsized from $500 million, a source said.

NiSource Finance Corp. sold $500 million of five-year guaranteed notes.

Also, KfW priced $3 billion of three-year global notes.

AvalonBay Communities, Inc. and Mosaic Co. also were expected to price new bonds.

The Markit CDX North American Investment Grade 29 index softened about 0.5 basis point to a spread of 55 bps.

Johnson & Johnson prices

Johnson & Johnson priced a $4.5 billion five-tranche offering of fixed-rate notes (Aaa/AAA/AAA) on Wednesday, according to a market source.

The company priced $500 million of 1.95% three-year notes at a spread of Treasuries plus 23 bps.

The $750 million tranche of 2.625% notes due Jan. 15, 2025 came at a Treasuries plus 43 bps spread.

Johnson & Johnson sold $1.5 million of 2.9% notes due Jan. 15, 2028 at a 58 bps over Treasuries spread.

The $1 billion offering of 3.4% notes due Jan. 15, 2038 priced at a spread of Treasuries plus 63 bps.

In the final tranche, the company sold $750 million of 3.5% notes due Jan. 15, 2048 at a 73 bps spread over Treasuries.

The notes priced on the tight side of guidance.

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

Proceeds will be used for general corporate purposes, including to repay commercial paper.

The consumer products company is based in New Brunswick, N.J.

American Electric in primary

American Electric Power sold $1 billion of senior notes (Baa1/BBB+/) in two tranches on Wednesday, according to a 424B2 filing with the Securities and Exchange Commission.

The company priced $500 million of 2.15% series G notes due Nov. 13, 2020 at 99.867 to yield 2.196%, or a spread of Treasuries plus 45 bps.

American Electric Power sold $500 million of 3.2% series H notes due Nov. 13, 2027 at 99.83 to yield 3.22%, or a Treasuries plus 90 bps spread.

J.P. Morgan Securities, Scotia Capital (USA) Inc., Wells Fargo Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey, Inc. and Huntington Investment Co. were the bookrunners.

American Electric Power is a Columbus, Ohio-based electricity distributor for more than 5 million customers in 11 states.

Suncor prices $750 million

Suncor Energy sold $750 million of 4% 30-year notes (Baa1/A-/DBRS: A) on Wednesday at 99.498 to yield 4.029%, according to an FWP filing with the SEC.

The notes priced at a spread of 125 bps over Treasuries.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Mizuho Securities USA Inc. were the bookrunners.

Proceeds will be used to repay upcoming long-term debt maturities and for general corporate purposes. Suncor is a Calgary, Alta., energy company.

NiSource sells five-year notes

NiSource Finance sold $500 million of 2.65% five-year guaranteed notes on Wednesday with a spread of Treasuries plus 68 bps, according to an FWP filed with the SEC.

The notes (Baa2/BBB+/BBB) priced at 99.874 to yield 2.677%.

J.P. Morgan Securities, PNC Capital Markets LLC, RBC Capital Markets, LLC and U.S. Bancorp Investments Inc. were the bookrunners.

The notes are unconditionally guaranteed by NiSource Inc.

Proceeds will be used to repay NiSource’s $500 million variable rate term loan due March 29, 2019. NiSource is a Merrillville, Ind.-based company with businesses in natural gas transmission, storage and distribution, and electricity generation, transmission and distribution.

KfW raises $3 billion

KfW (Aaa/AAA/AAA) sold $3 billion of 1.875% global notes due Dec. 15, 2020 on Wednesday at 99.829, according to an FWP filing with the SEC.

BMO Capital Markets Corp., J.P. Morgan Securities and TD Securities (USA) LLC were the managers.

The notes will be guaranteed by the Federal Republic of Germany and listed on the Luxembourg Stock Exchange.

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