MUFG, Telefonica, J.B. Hunt, Honda, Highwoods, Arizona Public, Mid-America price; CDP ahead

By Cristal Cody

Tupelo, Miss., Feb. 26 – High-grade issuers kept up strong pricing action on Tuesday with more than $8 billion of bonds sold during the session.

Mitsubishi UFJ Financial Group, Inc. priced a $5.5 billion five-part offering of senior notes.

Telefonica Emisiones SAU sold $1.25 billion of 30-year guaranteed senior notes.

J.B. Hunt Transport Services Inc. priced $700 million of seven-year senior notes.

American Honda Finance Corp. sold $450 million of floating-rate medium-term notes due 2020.

Highwoods Realty LP priced $350 million of 10-year notes.

Arizona Public Service Co. priced $300 million of 30-year notes.

Mid-America Apartments, LP came with $300 million of 10-year senior notes on Tuesday.

Also during the session, Brooklyn Union Gas Co. held fixed-income investor calls for dollar-denominated 10- and 30-year senior notes.

Coming up on Wednesday, CDP Financial Inc. plans to price a dollar-denominated offering of three-year senior notes.

More than $8 billion of investment-grade bonds priced on Monday, led by a $2.5 billion three-part deal from Lam Research Corp.

The week is expected to post about $25 billion to $30 billion of total volume.

In other action, several U.S. companies have priced reverse Yankee bonds as access to the European market improves, sources said.

Colgate-Palmolive Co. priced €1 billion of euro notes in two tranches on Tuesday following Coca-Cola Co.’s €3.5 billion four-part offering of euro-denominated notes on Monday.

About $21 billion of reverse Yankee bonds have priced year to date, including more than $9 billion priced so far in February.

The Markit CDX North American Investment Grade 31 index was mostly unchanged on Tuesday at a spread of 60 basis points.

In the secondary market, Lam Research’s three tranches of notes were seen earlier about 10 bps tighter than issuance, a source said.

The company sold $750 million of 3.75% notes due 2026 at a spread of 120 bps over Treasuries, $1 billion of 4% notes due 2029 at a spread of 135 bps over Treasuries and $750 million of 4.875% notes due 2049 at a spread of Treasuries plus 185 bps.

MUFG sells $5.5 billion

Mitsubishi UFJ Financial Group (A3/A-/) priced a $5.5 billion five-part offering of senior notes on Tuesday, according to a market source.

The company sold $500 million of three-year floating-rate notes at Libor plus 70 bps.

A $1.5 billion tranche of 3.218% three-year fixed-rate notes priced with a Treasuries plus 77 bps spread.

Mitsubishi UFJ Financial Group sold $1.5 billion of 3.407% five-year notes at a spread of 95 bps over Treasuries.

A $1.5 billion tranche of 3.741% 10-year notes priced at a spread of 110 bps over Treasuries.

The final $500 million tranche of 4.153% 20-year notes priced at a spread of 115 bps over Treasuries.

Morgan Stanley & Co. LLC and MUFG were the bookrunners.

The bank is based in Tokyo.

Telefonica sells $1.25 billion

Telefonica Emisiones priced $1.25 billion of 5.52% 30-year guaranteed senior notes (Baa3/BBB/BBB) on Tuesday at a spread of Treasuries plus 252 bps, according to a market source.

Price guidance was in the Treasuries plus 255 bps area, while the notes were initially talked to print in the 265 bps spread area.

Barclays, BofA Merrill Lynch, Commerz Markets LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and Morgan Stanley were the bookrunners.

The notes are guaranteed by Telefonica SA.

The telecommunications group is based in Madrid.

J.B. Hunt in primary

J.B. Hunt Transport Services priced $700 million of 3.875% seven-year senior notes (/BBB+/) on the tight side of guidance Tuesday at a spread of 135 bps over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced at 99.994 to yield 3.876%.

BofA Merrill Lynch, JPMorgan, SunTrust Robinson Humphrey Inc., BB&T Capital Markets and Regions Securities LLC were the bookrunners.

The issue is guaranteed by J.B. Hunt Transport, Inc.

J.B. Hunt is a Lowell, Ark.-based provider of supply chain solutions.

American Honda sells floaters

American Honda Finance (A2/A/) priced $450 million of floating-rate medium-term notes due Nov. 2, 2020 on Tuesday at par to yield Libor plus 28 bps, according to an FWP filing with the SEC.

The interest rate will initially reset on May 2, 2019 and will reset on each interest payment date.

Citigroup Global Markets Inc. and Deutsche Bank were the bookrunners.

American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.

Highwoods Realty prints

Highwoods Realty priced $350 million of 4.2% 10-year notes on Tuesday at a spread of Treasuries plus 160 bps, according to an FWP filing with the SEC.

The notes (Baa2/BBB/) priced at 99.717 to yield 4.234%.

Jefferies & Co., BofA Merrill Lynch, Wells Fargo Securities LLC, BB&T Capital Markets, Capital One Securities, Inc., Regions Securities and U.S. Bancorp Investments, Inc. were the bookrunners.

The real estate investment trust is based in Raleigh, N.C.

Arizona Service sells bonds

Arizona Public Service priced $300 million of 4.25% 30-year notes (A2/A-/A) on Tuesday at 99.983 to yield 4.251%, according to an FWP filing with the SEC.

The notes priced with a spread of 125 bps over Treasuries.

Barclays, Mizuho, SunTrust Robinson Humphrey and Wells Fargo were the bookrunners.

Arizona Public Service is an electric utility based in Phoenix and a subsidiary of Pinnacle West Capital Corp.

Mid-America prices

Mid-America Apartments sold $300 million of 3.95% 10-year senior notes on Tuesday at a spread of 135 bps over Treasuries, according to an FWP filed with the SEC.

The notes (Baa1/BBB+/BBB+) priced at 99.72 to yield 3.984%.

Wells Fargo, Citigroup, Jefferies, JPMorgan, U.S. Bancorp and Mizuho were the bookrunners.

Mid-America Apartments is a Memphis-based REIT.

Brooklyn Union eyes market

Brooklyn Union Gas (A3/A-/BBB+) planned to hold fixed-income investor calls on Tuesday for a dollar-denominated two-part offering of senior notes, according to a market source.

The Rule 144A and Regulation S deal includes 10- and 30-year tranches.

BofA Merrill Lynch, BNY Mellon Capital Markets LLC, Credit Suisse, Goldman Sachs and MUFG are the arrangers.

The National Grid plc subsidiary is a Brooklyn, N.Y.-based natural gas distributor and transporter.

CDP Financial plans deal

CDP Financial (Aaa/AAA/AAA) plans to price a Rule 144A and Regulation S dollar-denominated offering of three-year senior notes on Wednesday, according to a market source.

Initial price talk on the notes due March 7, 2022 was in the mid-swaps plus 20 bps area.

BNP Paribas Securities Corp., Goldman Sachs, HSBC Securities (USA) Inc. and TD Securities (USA) LLC are the bookrunners.

Parent Caisse de depot et placement du Quebec will guarantee the notes.

CDP Financial is a Montreal-based financing arm of the public and parapublic pension plan and insurance program manager.

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