Morning Commentary: Interpublic offers $2 billion notes; Japan Finance plans five-year bonds

By Devika Patel

Knoxville, Tenn., Sept. 18 – Tuesday saw a moderate amount of primary activity in the investment-grade bond market, with three new deals announced.

Interpublic Group of Cos., Inc., a New York-based provider of advertising and marketing services, announced a $2 billion offering of senior notes in four tranches to help finance a $2.3 billion acquisition.

Japan Finance Organization for Municipalities, the Tokyo-based funding organization for Japanese local governments, reported that it will offer fixed-rate senior notes due Sept. 27, 2023 in a Rule 144A sale.

Brussels, Belgium, regional bank Dexia Credit Local SA announced five-year notes to be sold via Deutsche Bank Securities Inc.

Interpublic on tap

Interpublic said it will offer senior notes in four tranches, which feature a make-whole call and then a par call. Moody's Investors Service said it has assigned a Baa2 rating to the $2 billion of notes.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC are the bookrunners.

Proceeds will be used, along with proceeds from a term loan, to acquire Acxiom Corp.’s Marketing Solutions business for $2.3 billion in cash.

Japan Finance offers notes

Japan Finance said it intends to sell fixed-rate senior notes (A1/A+) due Sept. 27, 2023 with initial price talk in the mid-swaps plus 44 basis points area.

The Rule 144A notes are expected to price Wednesday.

BofA Merrill Lynch, BNP Paribas Securities Corp., JPMorgan and Nomura are the joint bookrunners.

Dexia to price notes

Dexia reported that it plans to price an offering of five-year notes.

The notes will be guaranteed by Belgium, France and Luxembourg.

Deutsche Bank Securities Inc. is the stabilization coordinator and stabilization manager.

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