Capital One, Kinder Morgan, Georgia Power price bonds; American Water Works holds roadshow

By Cristal Cody

Tupelo, Miss., Aug. 3 – Investment-grade deal action stayed steady on Thursday with more than $3 billion of bonds priced from Capital One, NA, Kinder Morgan, Inc. and Georgia Power Co.

Capital One tapped the primary market with a $1.3 billion two-tranche senior notes offering.

Kinder Morgan priced $1.25 billion of senior notes in two parts, adding a floating-rate tranche to the final sale.

Georgia Power priced $500 million of three-year notes in an offering that was upsized from $400 million.

Also on Thursday, Intel Corp. sold $640 million of 30-year senior notes.

In other activity, Voorhees, N.J.-based water and wastewater utility American Water Works Co., Inc. (A3/A/) kicked off a two-day roadshow for an upcoming deal, according to a market source.

J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are the arrangers.

Credit spreads widened during the session. The Markit CDX North American Investment Grade index softened more than 1 basis point on Thursday to close at a spread of 57 bps.

In the secondary market, Intel’s existing bonds were seen trading about 5 bps wider over the day, a market source said.

ConocoPhillips Co.’s 4.95% notes due 2026 (Baa1/A-/A-) firmed 3 bps to 96 bps bid in secondary trading on Thursday following Moody’s Investors Service credit ratings upgrade, according to a market source.

Moody’s raised the senior debt ratings on the Houston-based energy company to Baa1 from Baa2.

ConocoPhillips sold $1.25 billion of the bonds on March 3, 2016 at a spread of 312.5 bps plus Treasuries.

Capital One sells $1.3 billion

Capital One sold $1.3 billion of senior notes (Baa1/BBB+/A-) in two parts on Thursday, according to a market source.

Capital One Financial priced $300 million of five-year floating-rate notes at Libor plus 82 bps.

The company sold $1 billion of 2.65% five-year fixed-rate notes at a spread of Treasuries plus 90 bps.

Citigroup Global Markets Inc., Credit Suisse Securities (USA), Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Capital One Securities, Inc. were the bookrunners.

Capital One is a McLean, Va.-based financial services company.

Kinder Morgan prices

Kinder Morgan sold $1.25 billion of senior notes (Baa3/BBB-/BBB-) in two parts on Thursday, according to an FWP filed with the Securities and Exchange Commission.

The company priced $250 million of floating-rate notes due Jan. 15, 2023 at par to yield Libor plus 128 bps.

Kinder Morgan sold $1 billion of 3.15% fixed-rate notes due Jan. 15, 2023 at 99.774 to yield 3.196% and a spread of Treasuries plus 140 bps.

The bookrunners were Barclays, J.P. Morgan Securities, BofA Merrill Lynch, Mizuho Securities USA Inc., MUFG, SMBC Nikko Securities Americas Inc. and SunTrust Robinson Humphrey, Inc.

Proceeds will be used to repay debt under the company’s term loan facility, to redeem the 5.5% senior notes due 2022 issued by subsidiary Hiland Partners Holdings LLC and for general corporate purposes.

Kinder Morgan is a Houston-based pipeline transportation and energy storage company.

Intel sells 30-year notes

Intel priced $640 million of 30-year senior notes (A1/A+/A+) on Thursday at par to yield 4.1%, according to an FWP filing with the SEC.

The offering was priced in the U.S. and Taiwan markets.

Deutsche Bank AG, Taipei Branch was the bookrunner.

Intel plans to apply to list the notes on the Taipei Exchange.

Proceeds will be used for a portion of the redemption price for the company’s 4.9% senior notes due 2045, which are being redeemed in August.

The semiconductor chip maker is based in Santa Clara, Calif.

Georgia Power in primary

Georgia Power priced $500 million of series 2017C senior notes due Sept. 8, 2020 on Thursday with a 2% coupon at 99.966 to yield 2.011%, according to an FWP filing with the SEC.

The notes priced with a spread of Treasuries plus 53 bps.

Barclays, MUFG and Scotia Capital (USA) Inc. were the bookrunners.

Proceeds will be used to repay all or a portion of the company’s $50 million floating-rate bank loan and outstanding commercial paper borrowings, which were about $145 million as of Wednesday, with any remaining proceeds used for general corporate purposes.

Georgia Power is an Atlanta-based electric utility company.

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