ABB, Bell Canada, CenterPoint, Valero, Allstate, Dollar General sell notes; KfW plans deal

By Cristal Cody

Tupelo, Miss., March 26 – Investment-grade companies priced more than $5 billion of bonds on Monday.

ABB Finance (USA) Inc. sold $1.5 billion of guaranteed notes in three tranches.

Bell Canada placed $750 million of 30-year notes.

Citizens Bank, NA priced $750 million of senior notes in two tranches.

CenterPoint Energy Resources Corp. came with a $600 million two-part offering of senior notes.

Valero Energy Partners LP sold $500 million of 10-year senior notes on Monday following the company’s investor calls held earlier in the month.

Allstate Corp. priced $500 million of floating-rate senior notes (A3/A-/) in two parts, as well as $500 million of preferred stock.

Also on Monday, Dollar General Corp. sold $500 million of 10-year senior notes.

Coming up on Tuesday, KfW (Aaa/AAA/AAA) plans to price three-year global notes via Citigroup Global Markets Inc., Nomura Securities International, Inc. and RBC Capital Markets, LLC. The notes were initially talked to price with a spread in the mid-swaps plus 1 basis point area.

About $10 billion to $15 billion of overall volume is expected by market sources for the week.

The bonds markets will close early on Thursday and remain closed on Friday for the Good Friday holiday.

The Markit CDX North American Investment Grade 30 index firmed about 3 bps to close the day at a spread of 66 bps.

ABB Finance sells $1.5 billion

ABB Finance (USA) priced $1.5 billion of guaranteed notes (A2/A) in three tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $300 million of 2.8% two-year notes at 99.936 to yield 2.833%, or a spread of Treasuries plus 55 bps.

ABB Finance priced $450 million of 3.375% five-year notes at 99.932 to yield 3.39%. The notes priced with a spread of 75 bps over Treasuries.

In the final tranche, the company sold $750 million of 3.8% 10-year notes at par to yield a spread of Treasuries plus 95 bps.

The notes priced on the tight side of guidance.

Citigroup Global Markets, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the bookrunners.

The notes are guaranteed by Zurich-based parent company ABB Ltd.

The unit of the power and automation technology company is based in Norwalk, Conn.

Bell Canada in primary

Bell Canada priced $750 million of 4.464% 30-year series US-1 notes (Baa1/BBB+/BBB (high)) on Monday at par to yield a spread of 140 bps over Treasuries, according to an FWP filing with the SEC.

BofA Merrill Lynch, RBC Capital Markets, Barclays, Citigroup Global Markets and TD Securities (USA) LLC were the bookrunners.

The bonds are fully and unconditionally guaranteed by parent company BCE Inc.

The telecommunications company is based in Montreal.

Citizens Bank prices

Citizens Bank priced $750 million of senior notes (Baa1/A-/BBB+) in two parts on Monday, according to a market source and a company news release from parent Citizens Financial Group, Inc.

Citizens Bank priced $250 million of five-year floating-rate notes at Libor plus 95 bps.

The company priced $500 million of 3.7% notes five-year fixed-rate notes at a spread of Treasuries plus 110 bps.

Morgan Stanley & Co. LLC, Citigroup Global Markets, Credit Suisse Securities, Wells Fargo Securities LLC and Citizens Capital Markets, Inc. were the underwriters.

The bank is based in Providence, R.I.

CenterPoint sells $600 million

CenterPoint Energy Resources sold $600 million of senior notes (Baa2A-/BBB) in two parts on Monday, according to an FWP filing with the SEC.

The company sold $300 million of 3.55% five-year notes at 99.782 to yield 3.598%, or a spread of Treasuries plus 97 bps.

CenterPoint Energy priced $300 million 4% 10-year notes with a Treasuries plus 117 bps spread. The notes priced at 99.942 to yield 4.007%.

Citigroup Global Markets, Credit Suisse Securities, BofA Merrill Lynch, MUFG, Barclays, J.P. Morgan Securities, Regions Securities LLC and U.S. Bancorp Investments Inc. were the bookrunners.

CenterPoint is a Houston-based energy delivery company.

Valero raises $500 million

Valero Energy Partners priced a $500 million offering of 4.5% 10-year senior notes on Monday at a spread of 170 bps over Treasuries, according to an FWP filing with the SEC.

The notes (Baa3/BBB-/BBB-) priced at 99.66 to yield 4.543%.

Barclays, Credit Suisse Securities, Mizuho Securities USA Inc., MUFG, Citigroup Global Markets, BofA Merrill Lynch, SMBC Nikko Securities America, Inc. and SunTrust Robinson Humphrey Inc. were the bookrunners.

San Antonio-based Valero is an oil refinery owner and operator.

Allstate sells two tranches

Allstate sold $500 million of floating-rate senior notes (A3/A-/) in two parts on Monday, according to a market source and an FWP filing with the SEC.

The company priced $250 million of three-year floaters at par to yield Libor plus 43 bps.

Allstate sold $250 million of five-year floaters at par to yield Libor plus 63 bps.

Both tranches priced on the tight side of guidance.

BofA Merrill Lynch, J.P. Morgan Securities, Morgan Stanley and Wells Fargo Securities were the bookrunners.

Allstate is a Northbrook, Ill.-based insurance company.

Dollar General prices

Dollar General sold $500 million of 4.125% senior notes due May 1, 2028 (Baa2/BBB/) on Monday at a spread of 130 bps over Treasuries, according to a market source and an FWP filing with the SEC.

The notes came on the tight side of talk in the Treasuries plus 135 bps area.

The notes priced at 99.899 to yield 4.137%.

Goldman Sachs & Co., BofA Merrill Lynch, Wells Fargo Securities, Citigroup Global Markets and U.S. Bancorp Investments were the bookrunners.

The discount retailer is based in Goodlettsville, Tenn.

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