TransCanada, HSBC, Citadel tap primary with new bonds; Royal Caribbean holds calls

By Cristal Cody

Tupelo, Miss., Nov. 15 – High-grade bond supply slowed but held steady over Wednesday’s session.

TransCanada Pipelines Ltd. priced $1.25 billion of senior notes in two tranches.

HSBC Holdings plc placed $1 billion of six-year fixed-to-floating-rate senior notes.

Citadel LP priced $500 million of long five-year senior notes.

Also, MB Financial, Inc. sold $200 million of $25.00-par depositary shares, each representing 1/40th of an interest in 6% series C non-cumulative perpetual preferred stock, tighter than talk.

The company’s subsidiary, MB Financial Bank, NA, priced $175 million of 4% 10-year fixed-to-floating rate subordinated notes on Tuesday.

Other issuers are holding fixed-income investor calls for possible bond offerings, a source said.

Royal Caribbean Cruises Ltd. (Baa3/BBB-/) was expected to conclude a two-day round of investor calls on Wednesday. BofA Merrill Lynch, BNP Paribas Securities Corp., Goldman Sachs & Co., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and SMBC Nikko Securities America, Inc. are the arrangers.

The Markit CDX North American Investment Grade 29 index ended mostly unchanged at a spread of 57 basis points.

TransCanada sells notes

TransCanada Pipelines (A3/A-/A-) priced $1.25 billion of two-year senior notes in fixed- and floating-rate tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The company sold $550 million of two-year floating-rate notes at par to yield Libor plus 27.5 bps.

TransCanada priced $700 million of 2.125% two-year fixed-rate notes at 99.992 to yield 2.129%, or a spread of Treasuries plus 45 bps.

MUFG and Deutsche Bank Securities Inc. were the bookrunners.

Proceeds will be used for general corporate purposes and to reduce short term debt.

TransCanada is a natural gas and oil pipeline and storage company based in Calgary, Alta.

HSBC prices $1 billion

HSBC Holdings priced $1 billion of 3.033% fixed-to-floating-rate senior notes due Nov. 22, 2023 on Wednesday at par to yield a spread of 100 bps over Treasuries, according to an FWP filing with the SEC.

The sustainable development goal bonds (A2/A/AA-) convert to a floating rate of Libor plus 92.3 bps beginning Nov. 22, 2022.

HSBC Securities (USA) Inc. was the bookrunner.

The company held fixed-income investor calls on Tuesday for the offering.

Proceeds will be used to finance new and/or refinance existing eligible businesses and projects that promote any of the selected seven sustainable development goals as defined by the United Nations, according to a 424B2 filing with the SEC. Eligible categories include good health and well-being, quality education and clean water and sanitation.

The banking and financial services group is based in London.

Citadel places notes

Citadel priced $500 million of 5.375% senior notes due Jan. 16, 2023 (/BBB/) on Wednesday at a spread of 332.8 bps over Treasuries, according to a market source.

The notes were sold on the tight side of initial price talk in the 5% to 6% area.

J.P. Morgan Securities LLC and UBS Securities LLC were the bookrunners.

The company held fixed-income investor calls on Monday and Tuesday.

Citadel is a Chicago-based hedge fund management firm.

MB Financial prints

MB Financial priced $200 million of $25.00-par depositary shares, each representing 1/40th of an interest in 6% series C non-cumulative perpetual preferred stock, according to a market source and an FWP filing with the SEC.

The issue was initially talked to price in the 6.125% area.

BofA Merrill Lynch and UBS Securities were the lead bookrunners. J.P. Morgan Securities and Sandler O'Neill + Partners, LP were joint bookrunners.

MB Financial plans to list the depositary shares on the Nasdaq under the symbol “MBFIO.”

Proceeds will be used to redeem some or all of the company’s 4 million shares of series A preferred stock and for general corporate purposes.

Chicago-based MB Financial is a financial holding company.

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