High-grade deal volume strong; Sempra, Sumitomo, Crown Castle, Athene, EIB price notes

By Cristal Cody

Tupelo, Miss., Jan. 9 – Sempra Energy led deal action in the high-grade bond market on Tuesday with $5 billion of senior notes priced in seven tranches.

The notes were seen 2 basis points tighter in the grey markets, a source said.

Sumitomo Mitsui Financial Group Inc. came with a $4.75 billion five-part offering of dollar-denominated senior notes.

Also on Tuesday, Crown Castle International Corp. sold $1.75 billion of senior notes in two tranches.

Athene Holding Ltd. priced $1 billion of 10-year senior notes.

In other issuance, Jabil Inc. placed $500 million of 10-year senior notes.

Also, the European Investment Bank priced $5 billion of five-year global notes tighter than initial price talk.

Supply is expected to be heavy over the week with about $25 billion to $30 billion of volume forecasted by market sources for the week.

Credit spreads softened on Tuesday. The Markit CDX North American Investment Grade 29 index eased about 1 bp to a spread of 46 bps.

Sempra Energy sells $5 billion

Sempra Energy priced $5 billion of senior notes (Baa1/BBB+/BBB+) in seven tranches on Tuesday, according to a market source.

The company sold $500 million of floating-rate notes due July 15, 2019 at Libor plus 25 bps.

The $500 million tranche of 2.4% notes due Feb. 1, 2020 priced at a spread of 50 bps over Treasuries.

Sempra Energy priced $700 million of floating-rate notes due Jan. 15, 2021 at Libor plus 50 bps.

The $500 million offering of 2.9% five-year notes priced with a spread of Treasuries plus 65 bps.

Sempra Energy sold $1 billion of 3.4% 10-year notes at a 93 bps spread over Treasuries.

The $1 billion tranche of 3.8% notes due Feb. 1, 2038 priced at a Treasuries plus 98 bps spread.

In the final tranche, the company sold $800 million of 4% 30-year bonds with a 118 bps spread over Treasuries.

All the notes priced on the tight side of talk.

RBC Capital Markets, LLC., Morgan Stanley & Co. LLC and Barclays were the bookrunners.

Proceeds will be used to finance a portion of the company’s planned merger with Energy Future Holdings Corp. or for general corporate purposes, including the voluntary redemption of the company’s mandatory convertible preferred stock.

Sempra is a San Diego-based electricity and natural gas utility and infrastructure company.

Sumitomo Mitsui prices

Sumitomo Mitsui Financial Group priced $4.75 billion of dollar-denominated senior notes (A1/A-/A) in five tranches on Tuesday, according to a market source.

The company sold $750 million of two-year floating-rate notes at Libor plus 35 bps.

Sumitomo Mitsui priced $1.24 billion of 2.514% two-year fixed-rate notes at a spread of Treasuries plus 55 bps.

The company sold $500 million of five-year floating-rate notes at Libor plus 74 bps.

Sumitomo Mitsui’s $1.5 billion tranche of 3.102% five-year fixed-rate notes were sold with a 78 bps spread over Treasuries.

The company also priced $750 million of 3.544% 10-year notes at a spread of 100 bps over Treasuries.

Goldman Sachs & Co., SMBC Nikko Securities America Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

The banking and financial company is based in Tokyo.

Crown Castle sells notes

Crown Castle International sold $1.75 billion of senior notes (Baa3/BBB-/BBB-) in two parts on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

Crown Castle priced $750 million of 3.15% long five-year notes at 99.63 to yield 3.224%. The notes priced on the tight side of talk at a spread of Treasuries plus 90 bps.

The company sold $1 billion of 3.8% 10-year notes at 99.615 to yield 3.846% and a Treasuries plus 130 bps spread, on the tight side of guidance.

Citigroup Global Markets, Credit Agricole Securities (USA) Inc., RBC Capital Markets, SG Americas Securities, LLC, TD Securities (USA) LLC, Barclays, Fifth Third Securities, Inc., J.P. Morgan Securities, BofA Merrill Lynch, Mizuho Securities USA LLC, Morgan Stanley, MUFG, PNC Capital Markets LLC, SMBC Nikko and Sun Trust Robinson Humphrey, Inc. were the bookrunners.

Proceeds will be used to repay in full the $1.25 billion series 2010-3 class C-2020 senior secured tower revenue notes and a portion of the borrowings under the company’s revolver.

Houston-based Crown Castle provides shared wireless infrastructure to wireless carriers.

Athene prices $1 billion

Athene Holding priced $1 billion of 4.125% 10-year senior notes (/BBB/BBB-) on Tuesday at 99.846 to yield 4.144%, or a spread of Treasuries plus 160 bps, according to a market source and an FWP filing with the SEC.

The notes priced on the tight side of guidance of Treasuries plus 165 bps area and tighter than initial price talk in the Treasuries plus 175 bps area.

The bookrunners were Barclays, Goldman Sachs, Wells Fargo Securities LLC, Citigroup Global Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BofA Merrill Lynch and RBC Capital Markets.

Proceeds from the deal will be used for general corporate purposes.

Athene Holding is a retirement services company based in Pembroke, Bermuda.

EIB raises $5 billion

The European Investment Bank (Aaa/AAA/AAA) priced $5 billion of 2.5% global notes due March 15, 2023 on Tuesday at 99.982 to yield 2.504%, according to a market source.

The notes priced in line with guidance at a spread of mid-swaps plus 15 bps, or Treasuries plus 19.3 bps.

Guidance on the notes had tightened to mid-swaps plus 15 bps from initial price talk in the mid-swaps plus 17 bps area.

BNP Paribas Securities Corp., Goldman Sachs International and HSBC Securities (USA) Inc. were the lead managers.

The global notes will be registered with the Securities and Exchange Commission and listed on the Luxembourg Stock Exchange’s regulated market.

The lender for the European Union is based in Kirchberg, Luxembourg.

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