Union Pacific prices $6 billion; TD, Energy Transfer, Danske, AerCap, Japan Agency print

By Cristal Cody

Tupelo, Miss., June 5 – High-grade deal volume continued at a heavy pace for a second consecutive session on Tuesday.

Supply was led by Union Pacific Corp.’s $6 billion seven-part sale of fixed-rate senior notes.

Toronto-Dominion Bank also priced $3.25 billion of senior medium-term notes in four tranches.

Energy Transfer Partners, LP placed $3 billion of senior notes in four tranches on the tight side of guidance.

Danske Bank A/S sold $1.75 billion of senior notes in three parts.

AerCap Ireland Capital DAC and AerCap Global Aviation Trust priced $600 million of five-year guaranteed senior notes.

Issuance also included a sale of 10-year guaranteed bonds from Japan International Cooperation Agency.

Syndicate sources forecast about $25 billion of deal volume for the week.

On Monday, supply was led by Kraft Heinz Foods Co., John Deere Capital Corp., Hyundai Capital America and Goldman Sachs Bank USA.

The Markit CDX North American Investment Grade 30 index ended modesty softer at a spread of 64 basis points.

Union Pacific sells $6 billion

Union Pacific priced $6 billion of fixed-rate senior notes (A3/A-/) in seven tranches on Tuesday, according to a market source.

Union Pacific priced $600 million of 3.20% three-year notes at a spread of 60 bps over Treasuries.

Union Pacific sold $650 million of 3.50% five-year notes with a spread of Treasuries plus 75 bps.

The $500 million tranche of 3.75% seven-year notes priced at an 87 bps over Treasuries spread.

In a long 10-year-tranche, the company sold $1.5 billion of 3.95% notes at a Treasuries plus 105 bps spread.

Union Pacific priced $750 million of 4.375% long 20-year notes at a 130 bps over Treasuries spread.

The $1.5 billion offering of 4.50% long 30-year bonds priced with a spread of 142 bps over Treasuries.

The final $500 million tranche of 4.80% long 40-year bonds priced at a 172 bps over Treasuries spread.

The notes all priced tighter than initial talk.

Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

The railroad transportation company is based in Omaha.

TD Bank raises $3.25 billion

Toronto-Dominion Bank priced $3.25 billion of senior medium-term notes (Aa2/AA-/) in four tranches during the session, according to a market source.

The bank sold $900 million of two-year floating-rate notes at Libor plus 28 bps.

Toronto-Dominion Bank priced $500 million of 3% two-year notes at a spread of Treasuries plus 55 bps.

The $750 million tranche of three-year floating-rate notes priced at Libor plus 43 bps.

Toronto-Dominion Bank sold $1.1 billion of 3.25% three-year fixed-rate notes with a spread of Treasuries plus 65 bps.

TD Securities (USA) LLC, Citigroup Global Markets, Goldman Sachs & Co. and J.P. Morgan Securities were the bookrunners.

The bank and financial services company is based in Toronto.

Energy Transfer prices

Energy Transfer Partners priced $3 billion of senior notes (Baa3/BBB-/BBB-) in four tranches on the tight side of guidance on Tuesday, according to a market source.

Energy Transfer Partners priced $500 million of 4.20% notes due Sept. 15, 2023 at a spread of 145 bps over Treasuries.

The $1 billion tranche of 4.95% 10-year notes priced at a 205 bps over Treasuries spread.

Energy Transfer Partners also sold $500 million of 5.80% notes due June 15, 2038 at a spread of 275 bps over Treasuries.

The final $1 billion tranche of 6% notes due June 15, 2048 priced at a 300 bps over Treasuries spread.

Mizuho Securities USA Inc., MUFG, SMBC Nikko Securities America and TD Securities were the bookrunners.

Energy Transfer Partners is a Dallas-based natural gas and propane transportation company.

Danske brings $1.75 billion

Danske Bank priced $1.75 billion of senior notes (Baa1/A-/A) in three tranches, a market source said.

The company sold $400 million of floating-rate notes due Sept. 12, 2023 at Libor plus 106 bps and $850 million of 3.875% long five-year notes with a spread of Treasuries plus 120 bps.

Danske Bank priced $500 million of 4.375% 10-year notes with a Treasuries plus 148 bps spread.

BofA Merrill Lynch, Citigroup Global Markets, Danske Markets Inc., Morgan Stanley, TD Securities and Wells Fargo Securities LLC were the lead managers.

Danske Bank is a Copenhagen, Denmark-based bank.

AerCap prices $600 million

AerCap Ireland Capital and AerCap Global Aviation Trust sold $600 million of 4.125% five-year guaranteed senior notes (Baa3/BBB-/BBB-) at 99.749 to yield 4.18%, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at a spread of Treasuries plus 142 bps.

Citigroup Global Markets, Credit Agricole Securities (USA) Inc., Morgan Stanley, SunTrust Robinson Humphrey Inc., BofA Merrill Lynch, Barclays, BNP Paribas Securities Corp., Credit Suisse Securities, Deutsche Bank Securities Inc., Goldman Sachs, HSBC Securities (USA) Inc., J.P. Morgan Securities, Mizuho Securities USA Inc., MUFG, RBC Capital Markets, LLC, Santander Investment Securities Inc., TD Securities and Wells Fargo Securities were the bookrunners.

AerCap is an independent aircraft leasing company based in Amsterdam.

Japan Agency places notes

Japan International Cooperation Agency priced $500 million of 3.375% 10-year guaranteed bonds (/A+/) at par to yield a spread of mid-swaps plus 41 bps, or Treasuries plus 46.9 bps, according to a market source and an FWP filed with the SEC.

The notes were initially talked to price with a spread in the mid-swaps plus 45 bps area.

Barclays, Citigroup Global Markets, Daiwa Capital Markets Europe Ltd. and HSBC Bank plc were the bookrunners.

Japan International Cooperation Agency is a Japanese government-owned agency that promotes international cooperation and development of Japanese and global economies.

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