Ontario, NetApp, Magellan, Clorox, American Airlines tap primary market; credit spreads firm

By Cristal Cody

Tupelo, Miss., Sept. 26 – Primary action revved up on Tuesday with several issuers tapping the high-grade bond market.

The Province of Ontario priced a $2 billion offering of five-year bonds.

In corporate issuance, NetApp Inc. placed $800 million of senior notes in two tranches.

Magellan Midstream Partners, LP priced $500 million of 30-year senior notes.

Clorox Co. sold $400 million of 10-year senior notes.

Also, American Airlines, Inc. priced a $220,723,000 offering of pass-through certificates.

The Markit CDX North American Investment Grade 29 index tightened about 1 basis point to end at a spread of 59 bps.

Ontario prices $2 billion

The Province of Ontario priced a $2 billion offering of 2.2% five-year bonds on Tuesday at 99.991 to yield 2.202%, according to an FWP filing with the Securities and Exchange Commission.

The bonds (Aa2/A+/AA-) priced at mid-swaps plus 27 bps, or Treasuries plus 35.2 bps.

The underwriters were Citigroup Global Markets Ltd., Goldman Sachs International, HSBC Bank plc, TD Securities (USA) LLC, National Bank of Canada Financial Inc., BMO Capital Markets Corp., CIBC World Markets Corp., RBC Capital Markets, LLC and Scotia Capital (USA) Inc.

Proceeds will be used for general provincial purposes.

NetApp prices $800 million

NetApp (Baa2/BBB+/) sold $800 million of senior notes in two tranches, according to an FWP filing with the SEC.

The company priced $400 million of 2% two-year notes at 99.825 to yield 2.09% and a spread of Treasuries plus 65 bps.

NetApp sold $400 million of 3.3% seven-year notes at 99.975 to yield 3.304%, or Treasuries plus 123 bps.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, BofA Merrill Lynch, MUFG and Wells Fargo Securities, LLC were the bookrunners.

Proceeds will be used for general corporate purposes, including the repayment of $750 million of the company’s 2% senior notes due 2017 on or prior to maturity in December 2017.

NetApp is a storage and data management company based in Sunnyvale, Calif.

Magellan Midstream sells notes

Magellan Midstream Partners priced $500 million of 4.2% 30-year senior notes with a spread of 147 bps over Treasuries on Tuesday, according to an FWP filing with the SEC.

The notes (Baa1/BBB+) priced at 99.341 to yield 4.239%.

Barclays, SunTrust Robinson Humphrey Inc., Wells Fargo Securities, Citigroup Global Markets Inc., PNC Capital Markets LLC and SMBC Nikko Securities America, Inc. were the bookrunners.

Proceeds will be used for general partnership purposes, including capital expenditures and debt repayment. The energy transportation, storage and distribution company is based in Tulsa, Okla.

Clorox raises $400 million

Clorox sold $400 million of 3.1% 10-year senior notes on Monday at a spread of 87.5 bps over Treasuries, according to an FWP filing with the SEC.

The notes priced at 99.966 to yield 3.104%.

Citigroup Global Markets, Morgan Stanley, MUFG and Wells Fargo Securities were the bookrunners.

Proceeds will be used to repay at maturity all or some of the company’s $400 million 5.95% senior notes due October 2017 and for general corporate purposes.

The manufacturer and marketer of consumer and professional products is based in Oakland, Calif.

American Airlines prices at par

American Airlines priced a $220,723,000 offering of 3.7% series 2017-2B pass-through certificates (Baa3/BBB/) at par on Tuesday, according to an FWP filing with the SEC.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs were the structuring agents and lead bookrunners.

BofA Merrill Lynch, Barclays, Citigroup Global Markets, ICBC Standard Bank, J.P. Morgan Securities, Morgan Stanley, BNP Paribas Securities Corp., Credit Agricole Securities, Standard Chartered Bank and SMBC Nikko were bookrunners.

Proceeds will be used to acquire the company’s series B equipment notes.

The commercial airline and subsidiary of AMR Corp. is based in Fort Worth, Texas.

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