NextEra prices $500 million; primary thins; Old Republic tightens; credit spreads flat

By Cristal Cody

Eureka Springs, Ark., Aug. 25 – NextEra Energy Capital Holdings, Inc. tapped the high-grade primary market on Thursday as the lone reported U.S. corporate issuer.

NextEra Energy Capital Holdings sold $500 million in a remarketing of its series G debentures due Sept. 1, 2018.

Primary action remains light with desks thinning due to end-of-summer vacations and market focus on Federal Reserve chairman Janet Yellen’s Jackson Hole, Wyoming, speech on Friday.

The Markit CDX North American Investment Grade index closed less than ½ of a basis point tighter at a spread of 72 bps.

Old Republic International Corp.’s 3.875% senior notes due 2026 that priced on Tuesday traded more than 25 bps better than issuance in the secondary market earlier on Thursday.

Amgen Inc.’s 2.6% senior notes due 2026 eased 3 bps to trade wrapped around issuance.

NextEra Energy prices

NextEra Energy Capital Holdings sold $500 million of 1.649% series G debentures due Sept. 1, 2018 in a remarketing on Thursday at 100.25 to yield 1.522%, according to an FWP filing with the Securities and Exchange Commission.

The debentures (Baa1/BBB+/A-) priced with a spread of 75 bps over Treasuries.

Citigroup Global Markets Inc. (lead), Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC were the remarketing agents.

The bonds are guaranteed by NextEra Energy Capital Holdings’ parent company, NextEra Energy, Inc.

The debentures were originally issued as part of NextEra Energy’s corporate units on Sept. 25, 2013 in conjunction with a purchase contract agreement. The series G debentures now have $1 billion outstanding.

Proceeds from the remarketing of debentures that are components of the corporate units equal to the aggregate principal amount of the debentures will be applied to satisfy the obligation of the holders of the corporate units to purchase NextEra Energy’s common stock on Sept. 1.

Proceeds from any debentures that are not a component of the corporate units and whose holders elect to include those debentures in the remarketing will be paid to those holders.

NextEra Energy is an energy company based in Juno Beach, Fla.

Old Republic tightens

Old Republic International’s 3.875% senior notes due 2026 were quoted early Thursday at 208 bps offered in the secondary market, according to a source.

Old Republic International sold $550 million of the notes (Baa3/BBB+) on Tuesday at Treasuries plus 235 bps.

Chicago-based Old Republic is an insurance holding company.

Amgen softens

Amgen’s 2.6% senior notes due 2026 were 3 bps softer at 110 bps offered earlier in the day, a source said.

The company sold $1.25 billion of the notes (Baa1/A) on Aug. 10 at 110 bps over Treasuries.

Amgen is a Thousand Oaks, Calif., manufacturer and marketer of human therapeutics based upon advances in cellular and molecular biology.

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