SMBC Aviation, DPL, Suncorp-Metway, Protective Life sell notes; Manitoba markets dollar issue

By Cristal Cody

Tupelo, Miss., April 8 – Investment-grade supply on Monday included deals from SMBC Aviation Capital Ltd. and DPL Inc. following fixed income investor calls last week.

SMBC Aviation Capital subsidiary SMBC Aviation Capital Finance DAC priced $500 million of five-year senior notes.

DPL sold $400 million of 10-year notes.

Also on Monday, Suncorp-Metway Ltd. priced $500 million of five-year senior notes.

Protective Life Corp. brought $400 million of five-year senior notes to the primary market.

In other high-grade issuance during the session, TransCanada Pipelines Ltd. sold C$1 billion of long 30-year senior notes.

Coming up on Tuesday, the Province of Manitoba plans to price a dollar-denominated offering of five-year bonds.

Saudi Arabian Oil Co., which ended a weeklong roadshow on Friday, is expected to come to the market on Tuesday with a six-tranche offering of bonds that is being eyed by investment-grade desks, sources said.

About $15 billion to $20 billion of high-grade supply, not including Saudi Arabian Oil’s deal, is predicted for the week, according to market sources.

High-grade issuers sold more than $15 billion of bonds in the first week of April, compared to about $20 billion of supply forecast.

The Markit CDX North American Investment Grade 32 index closed the day steady at a spread of 60 basis points.

SMBC Aviation prices

SMBC Aviation Capital Finance priced $500 million of 3.55% five-year senior notes (/A-/A-) on Monday at a spread of Treasuries plus 125 bps, according to a market source.

Price guidance was in the Treasuries plus 130 bps area, tightened from initial talk in the 145 bps spread area.

Citigroup Global Markets Inc., Credit Agricole CIB, Goldman Sachs & Co. LLC, J.P. Morgan Securities plc, RBC Capital Markets, LLC and SMBC Nikko Securities America, Inc. were the lead managers.

SMBC Aviation Capital is a Dublin-based global aircraft leasing company.

DPL sells notes

DPL (Ba1/BBB-/BBB-) priced $400 million of 4.35% 10-year notes on Monday at a spread of 185 bps over Treasuries, according to a market source.

The notes priced on the tight side of guidance in the Treasuries plus 190 bps area and better than initial talk in the 212.5 bps spread area.

Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC were the lead managers.

DPL is a Dayton, Ohio-based electricity provider and subsidiary of AES Corp.

Suncorp-Metway prices

Suncorp-Metway (A1/A+/A+) priced $500 million of 3.3% five-year senior notes at a spread of Treasuries plus 103 bps in a Rule 144A and Regulation S offering on Monday, according to a market source.

The notes tightened from initial price talk in the Treasuries plus 120 bps area.

Citigroup Global Markets HSBC Securities (USA) Inc., J.P. Morgan Securities and RBC Capital Markets, LLC were the lead managers.

Suncorp-Metway is a banking and financial services company based in Brisbane, Queensland, Australia.

Protective Life in market

Protective Life (Baa1/A-/A-) sold $400 million of 3.1% five-year senior notes at a spread of 78 bps over Treasuries on Monday, according to a market source.

The notes were initially talked to print in the Treasuries plus 90 bps area with guidance firmed to the 80 bps spread area.

Deutsche Bank Securities Inc., J.P. Morgan Securities, Mizuho Securities USA LLC and U.S. Bancorp Investments, Inc. were the bookrunners.

Protective Life is a financial services holding company based in Birmingham, Ala.

Manitoba offers notes

Coming up on Tuesday, Manitoba (Aa2/A+/) plans to price a dollar-denominated offering of five-year global bonds, according to a market source.

Initial price talk on the bonds due April 16, 2024 was in the mid-swaps plus 28 bps area.

BMO Capital Markets Corp., National Bank of Canada Financial Inc., Scotia Capital (USA) Inc. and TD Securities (USA) LLC are the bookrunners.

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