Archer-Daniels, Ford Motor Credit, Boston Properties, Air Lease price; credit spreads soften

By Cristal Cody

Eureka Springs, Ark., Aug. 8 – August issuance continued to remain strong for a second week with companies pricing more than $5 billion of bonds on Monday.

Archer-Daniels-Midland Co. sold $1 billion of 10-year notes.

Ford Motor Credit Co. LLC priced $1 billion of three-year fixed- and floating-rate tranches.

Boston Properties LP sold $1 billion of 10-year senior notes.

Air Lease Corp. brought $750 million of seven-year senior notes to the primary market.

Ameriprise Financial, Inc. placed $500 million of 10-year senior notes.

CenterPoint Energy Houston Electric, LLC sold $300 million of 10-year general mortgage bonds.

CubeSmart, LP priced a $300 million offering of 10-year senior notes during the session.

Wells Fargo & Co. priced $100 million of five-year floating-rate notes.

Also, deals from Berkshire Hathaway Inc. and Berkshire-Hathaway Finance Corp. were expected to price on Monday.

The Markit CDX North American Investment Grade index ended the day 1 basis point softer at a spread of 71 bps.

In the secondary market, Caterpillar Financial Services Corp.’s 1.7% medium-term notes due 2021 traded 7 bps tighter than where the notes priced on Thursday.

Barclays plc’s new 3.2% notes due 2021 were more than 10 bps better than where the paper priced on Wednesday.

Archer-Daniels-Midland prices

Archer-Daniels-Midland sold $1 billion of 2.5% 10-year notes with a spread of 95 bps over Treasuries, according to a FWP filing with the Securities and Exchange Commission on Monday.

The notes due Aug. 11, 2026 (A2/A/A) priced at 99.71 to yield 2.533%.

BNP Paribas Securities Corp., HSBC Securities (USA) Inc., Deutsche Bank Securities Inc., MUFG, Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch were the bookrunners.

Proceeds will be used for general corporate purposes, including to repay a portion of outstanding commercial paper debt.

The Chicago-based company processes agricultural commodities and manufactures food and feed ingredients.

Ford Motor Credit sells $1 billion

Ford Motor Credit priced $1 billion of three-year fixed- and floating-rate notes in two parts on Monday, according to a FWP filing with the Securities and Exchange Commission.

The company sold $700 million of 1.897% notes due Aug. 12, 2019 at par to yield a spread of 105 bps over Treasuries.

In the second tranche, Ford Motor Credit sold $300 million of three-year floating-rate notes at par to yield Libor plus 83 bps.

The bookrunners were Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Goldman, Sachs & Co., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and SG Americas Securities, LLC.

Proceeds will be added to the company’s general funds.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based Ford Motor Co.

Boston Properties prints $1 billion

Boston Properties sold $1 billion of 2.75% 10-year senior notes at 99.271 to yield 2.833%, according to a FWP filing with the Securities and Exchange Commission on Monday.

The notes due Oct. 1, 2026 (Baa2/A-/BBB+) priced with a spread of 125 bps over Treasuries.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, US Bancorp Investments Inc., BNY Mellon Capital Markets, LLC, Citigroup Global Markers Inc. and Wells Fargo Securities, LLC were the bookrunners.

Proceeds will be used to repay debt, settle forward-starting interest rate swap contracts or for other general business purposes.

Boston-based Boston Properties operates real estate investment trust Boston Properties, Inc.

Air Lease prices $750 million

Air Lease sold $750 million of 3% seven-year senior notes with a spread of 180 bps over Treasuries on Monday, according to a FWP filing with the Securities and Exchange Commission.

The notes due Sept. 15, 2023 (/BBB-/) priced at 98.658 to yield 3.213%.

The bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Mizuho Securities USA Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., Fifth Third Securities, Inc., Goldman, Sachs & Co., ICBC Standard Bank Plc, Lloyds Securities Inc., Morgan Stanley & Co. LLC, MUFG, RBC Capital Markets, LLC, Santander Investment Securities Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC.

Proceeds will be used for general corporate purposes.

Air Lease is an aircraft leasing company based in Los Angeles.

Ameriprise sells $500 million

Ameriprise Financial sold $500 million of 2.875% 10-year senior notes at a spread of 130 bps over Treasuries on Monday, according to a FWP filing with the Securities and Exchange Commission.

The notes due Sept. 15, 2026 (A3/A/) priced at 99.893 to yield 2.887%.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

Ameriprise Financial is a financial services company based in Minneapolis.

CenterPoint Energy sells bonds

CenterPoint Energy Houston Electric sold $300 million of 2.4% series Z 10-year general mortgage bonds on Monday at 99.884 to yield 2.413%, according to a FWP filing with the Securities and Exchange Commission.

The bonds due Sept. 1, 2026 (A1/A/A) priced with a spread of 83 bps over Treasuries.

BofA Merrill Lynch, Deutsche Bank Securities Inc. and RBC Capital Markets, LLC were the bookrunners.

Proceeds will be used for general limited liability company purposes.

CenterPoint Energy is a Houston-based electricity transmitter and distributor.

CubeSmart prints $300 million

CubeSmart priced a $300 million offering of 3.125% 10-year senior notes on Monday at 99.504 to yield 3.183%, according to a FWP filing with the Securities and Exchange Commission.

The notes due Sept. 1, 2026 (Baa2/BBB/) priced with a spread of 160 bps over Treasuries.

Wells Fargo Securities, LLC, Barclays and Jefferies LLC were the bookrunners.

The notes are fully and unconditionally guaranteed by CubeSmart.

Proceeds will be used to repay outstanding debt under the company’s revolving portion of its credit facility due in April 2020 and for working capital and other general corporate purposes.

CubeSmart is a real estate investment trust that owns, manages, operates and develops self-storage facilities.

Wells Fargo prices $100 million

Wells Fargo priced $100 million of five-year floating-rate notes at par to yield Libor plus 90 bps on Monday, according to a FWP filing with the Securities and Exchange Commission.

The notes are due Aug. 10, 2021.

Wells Fargo Securities, LLC was the bookrunner.

The offering will be an add-on to the company’s $100 million of floating-rate notes due Aug. 10, 2021 that will be issued on Aug. 10. The total outstanding after closing will be $200 million.

The retail, commercial and corporate banking services provider is based in San Francisco.

RBS markets notes

Royal Bank of Scotland Group plc intends to price an offering of perpetual subordinated contingent convertible additional Tier 1 capital notes, according to filings with the Securities and Exchange Commission on Monday.

The notes do not have a maturity date and are callable after five years and every five years thereafter.

The company also is considering an additional perpetual 10-year non-callable tranche.

RBS is the global coordinator and lead manager. Joint bookrunners are Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and UBS Investment Bank.

Proceeds will be used for general corporate purposes.

Royal Bank of Scotland Group is a banking and financial services company based in Edinburgh, Scotland.

Caterpillar firms

Caterpillar Financial Services’ 1.7% notes due 2021 were quoted at 65 bps offered early Monday in secondary trading, according to a market source.

The company priced $950 million of the five-year notes on Thursday at a spread of 72 bps over Treasuries.

Nashville, Tenn.-based Caterpillar Financial Services is a financing arm of Caterpillar Inc.

Barclays better

Barclays’ 3.2% notes due 2021 traded at 202 bps offered in the secondary market, a source said early Monday.

Barclays sold $1.35 billion of the notes on Wednesday at a spread of 215 bps plus Treasuries.

The financial services company is based in London.

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