Berkshire Hathaway Energy, BNP, General Motors price notes; Libor yield highest since 2008

By Cristal Cody

Tupelo, Miss., Jan. 2 – Several issuers tapped the investment-grade bond market in the first session of 2018.

Berkshire Hathaway Energy Co. priced $2.2 billion of senior notes in four tranches.

BNP Paribas SA placed $2 billion of seven-year notes on the tight side of talk.

General Motors Financial Co. Inc. brought $1.65 billion of senior notes in three tranches to the primary market.

Also, Santander UK plc was offering notes.

Deal action is expected to be strong in January, according to market sources.

The Markit CDX North American Investment Grade 29 index ended the session about 0.5 basis point tighter at a spread of 48.5 bps.

The three-month Libor yield hit 1.69%, the highest yield since December 2008, according to a market source.

Berkshire prices $2.2 billion

Berkshire Hathaway Energy priced $2.2 billion of senior notes (A3/A-/BBB+) in four tranches on Tuesday, a source said.

The company sold $450 million of 2.375% three-year notes at a spread of Treasuries plus 38 bps.

Berkshire Hathaway Energy priced $400 million of 2.8% five-year notes at a 55 bps spread over Treasuries.

In the long 10-year tranche, the company priced $600 million of 3.25% notes with a Treasuries plus 83 bps spread.

The final $750 million tranche of 3.8% notes due July 15, 2048 were sold at a spread of 103 bps over Treasuries.

The notes priced on the tight side of talk.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG and Wells Fargo Securities LLC were the bookrunners.

Berkshire Hathaway Energy is a Des Moines, Iowa-based holding company majority owned by Omaha, Neb.-based Berkshire Hathaway.

BNP Paribas raises $2 billion

BNP Paribas priced $2 billion of 3.375% senior subordinated notes due Jan. 9, 2025 (Baa2/A-/A+) on Tuesday in a Rule 144A and Regulation S offering on the tight side of talk at a spread of Treasuries plus 103 bps, according to a market source.

Initial price talk was in the Treasuries plus 105 bps area.

BNP Paribas Securities Corp. was the bookrunner.

BNP Paribas is a Paris-based banking and financial services company.

GM Financial sells $1.65 billion

General Motors Financial (Baa3/BBB/BBB-) priced $1.65 billion of senior notes in three tranches on Tuesday, according to a market source.

The company sold $400 million of five-year floating-rate notes at Libor plus 99 bps, $850 million of 3.25% five-year notes priced at a spread of 102 bps over Treasuries and $400 million of 3.85% 10-year notes at a spread of Treasuries plus 142 bps.

Citigroup, Deutsche Bank Securities Inc., Lloyds Securities, Mizuho, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc. were the bookrunners.

General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.