High-grade volume surges; Fiserv, Wells Fargo, American Tower among issuers; AXIS in pipeline

By Cristal Cody

Tupelo, Miss., June 10 – Investment-grade deal volume soared to more than $17 billion on Monday after the threat of tariffs on Mexico goods was removed late Friday.

Fiserv, Inc. led deal volume with $9 billion of senior notes priced in four tranches following investor calls in the U.S. market last week.

Fiserv also plans to hold a roadshow this week in Europe from Tuesday through Thursday for a possible euro- and/or sterling-denominated deal.

The company intends to acquire First Data Corp. (Ba3/BB-/) in an all-stock transaction valued at about $22.7 billion.

Also on Monday, Wells Fargo & Co. sold $2.5 billion of medium-term senior redeemable fixed-to-floating-rate notes due 2027.

American Tower Corp. priced $2.3 billion of senior notes in two parts.

Digital Realty Trust LP sold $900 million of 10-year notes.

DTE Energy Co. brought $800 million of senior notes in two tranches to the primary market.

Aircastle Ltd. placed $650 million of seven-year senior notes.

Unum Group priced $400 million of 10-year senior notes during the session.

AEP Transmission Co. sold $350 million of 30-year senior notes.

W.P. Carey Inc. raised $325 million in an offering of 10-year senior notes.

In addition, Paccar Financial Corp. came with $200 million of three-year medium-term floating-rate notes.

Meanwhile, AXIS Specialty Finance plc announced plans to price $300 million of 10-year senior notes.

This week, syndicate sources said they expect about $20 billion to $25 billion of supply.

More than $24 billion of high-grade bonds priced last week, beating market forecasts of about $10 billion to $15 billion of issuance expected.

The Markit CDX North American Investment Grade 32 index improved nearly 2 basis points to close at a spread of 60 bps.

Fiserv prices $9 billion

Fiserv priced $9 billion of senior notes (Baa2/BBB/) in four tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.

A $2 billion tranche of 2.75% five-year notes were placed at 99.832 to yield 2.786%, or a spread of 87.5 bps over Treasuries.

The company sold $2 billion of 3.2% seven-year notes at a Treasuries plus 117 bps spread, or 99.993 to yield 3.201%.

Fiserv priced $3 billion of 3.5% 10-year notes at 99.832 to yield 3.52%. The notes priced with a Treasuries plus 137.5 bps spread.

In the final tranche, $2 billion of 4.4% 30-year notes were priced at 99.388 to yield 4.437% and a 182 bps over Treasuries spread.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, MUFG, PNC Capital Markets LLC, U.S. Bancorp Investments Inc., SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC were the bookrunners.

The provider of financial services technology is based in Brookfield, Wis.

Wells Fargo sells $2.5 billion

Wells Fargo sold $2.5 billion of 3.196% medium-term senior redeemable fixed-to-floating-rate notes due June 17, 2027 (A2/A-/A+) on Monday at a spread of 117 bps over Treasuries, according to a market source.

Initial talk was in the Treasuries plus 130 bps area.

The notes will reset in June 2026 to a floating rate of Libor plus 117 bps.

Wells Fargo Securities was the bookrunner.

The financial services company is based in San Francisco.

American Tower brings $2.3 billion

American Tower priced $2.3 billion of senior notes (Baa3/BBB-/BBB) in two tranches on Monday, according to an FWP filing with the SEC.

A $650 million tranche of 2.95% notes due Jan. 15, 2025 priced at 99.188 to yield 3.109%, or a spread of 120 bps over Treasuries.

The company sold $1.65 billion of 3.8% 10-year notes at 99.599 to yield 3.847%. The 10-year notes priced with a 170 bps over Treasuries spread.

BofA Securities Inc., Citigroup Global Markets, J.P. Morgan Securities, Morgan Stanley & Co. LLC and SMBC Nikko Securities America Inc. were the bookrunners.

American Tower is a telecommunications provider based in Boston.

Digital Realty in primary

Digital Realty Trust (Baa2/BBB/BBB) sold $900 million of 3.6% 10-year notes (Baa2/BBB/BBB) at 99.823 to yield 3.621%, or a spread of Treasuries plus 148 bps on Monday, according to an FWP filing with the SEC.

Bookrunners were J.P. Morgan Securities, Mizuho Securities USA LLC, MUFG, Barclays, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Jefferies LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, SunTrust Robinson Humphrey, TD Securities and U.S. Bancorp Investments.

The notes are guaranteed by Digital Realty Trust, Inc.

The San Francisco-based company owns, acquires, develops and operates data centers.

DTE Energy prints

DTE Energy priced $800 million of senior notes (Baa1/BBB+/BBB+) in two parts on Monday on the tight side of guidance, according to a market source and an FWP filed with the SEC.

The company sold $300 million of 2.6% notes due 2022 at 99.888 to yield 2.639%. The notes priced with a spread of 77 bps over Treasuries.

A $500 million tranche of 3.4% 10-year notes priced at 99.638 to yield 3.443%, or a Treasuries plus 130 bps spread.

BNP Paribas Securities Corp., Citigroup Global Markets, Mizuho Securities and MUFG were the bookrunners.

The energy company is based in Detroit.

Aircastle sells notes

Aircastle priced $650 million of 4.25% seven-year senior notes (Baa3/BBB-/BBB-) on Monday at a spread of 230 bps over Treasuries, according to an FWP filing with the SEC.

The notes priced at 99.515 to yield 4.331%.

J.P. Morgan Securities, BNP Paribas Securities, Credit Agricole Securities (USA) Inc. and Wells Fargo Securities were the bookrunners.

Stamford, Conn.-based Aircastle acquires, leases and sells commercial jet aircraft to airlines.

Unum Group prints

Unum Group priced $400 million of 4% 10-year senior notes (Baa2/BBB/BBB) on Monday at 99.633 to yield 4.045% and a spread of 190 bps over Treasuries, according to an FWP filing with the SEC.

Citigroup Global Markets, Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Deutsche Bank Securities Inc. were the bookrunners.

The company held fixed income investor calls on Tuesday for the offering.

Unum is an employee benefits provider based in Chattanooga, Tenn.

AEP sells 30-year issue

AEP Transmission sold $350 million of 3.8% 30-year senior notes (A2/A-/A) on Monday at a spread of Treasuries plus 120 bps, according to an FWP filing with the SEC.

The notes priced at 99.414 to yield 3.833%.

BofA Securities., PNC Capital Markets, RBC Capital Markets and U.S. Bancorp Investments were the bookrunners.

Columbus, Ohio-based AEP Transmission is an electric utility and a division of American Electric Power Co., Inc.

W.P. Carey prices $325 million

W.P. Carey sold $325 million of 3.85% 10-year senior notes at a spread of Treasuries plus 185 bps on Monday, according to an FWP filing with the SEC.

The notes (Baa2/BBB) priced at 98.876 to yield 3.986%.

Wells Fargo Securities, BofA Securities, J.P. Morgan Securities and U.S. Bancorp Investments were the bookrunners.

New York-based W.P. Carey is a publicly traded global net-lease real estate investment trust.

Paccar Financial sells notes

Paccar Financial (A1/A+/) priced $200 million of three-year medium-term floating-rate notes at Libor plus 45 bps on Monday, according to an FWP filing with the SEC.

J.P. Morgan Securities was the bookrunner.

Paccar Financial is a financing arm of Bellevue, Wash.-based Paccar Inc.

AXIS eyes primary

AXIS Specialty Finance plans to price $300 million of senior notes due 2029, according to a market source and a 424B5 filing with the Securities and Exchange Commission on Monday.

The company is scheduled to hold fixed income investor calls on Tuesday.

Wells Fargo Securities and HSBC Securities are the bookrunners.

The issue will have make-whole and par calls.

The notes are fully and unconditionally guaranteed by parent company AXIS Capital Holdings Ltd.

AXIS is a Pembroke, Bermuda-based provider of specialty lines insurance and treaty reinsurance with shareholders’ equity.

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