Fannie Mae, EIB, Comcast, Berkshire, American Airlines price; Time Warner notes firm

By Cristal Cody

Eureka Springs, Ark., Jan. 5 – Primary action remained strong for a third straight session in the investment-grade bond market with more than $12 billion of reported securities priced on Thursday.

Fannie Mae sold $3 billion of five-year Benchmark Notes.

The European Investment Bank placed $4 billion of five-year benchmark global SEC registered notes.

Comcast Corp. priced $2.5 billion of senior notes in two tranches on Thursday.

Berkshire Hathaway Finance Corp. brought $1.3 billion of floating-rate senior notes in two parts during the session.

Boardwalk Pipelines, LP sold $500 million of long 10-year senior notes.

In addition, Caterpillar Financial Services Corp. brought a $1.3 billion two-tranche offering of notes.

American Airlines, Inc. also returned to the primary market for a second time this week to sell $197,777,000 of class B series 2017-1B pass-through certificates. It priced the class AA and class A securities from the same deal on Wednesday.

The Markit CDX North American Investment Grade index closed the day mostly unchanged at a spread of 64 basis points.

Media reports surfaced on Thursday that president-elect Donald Trump remains opposed to the merger of AT&T Inc. and Time Warner Inc.

AT&T announced plans in October to acquire Time Warner in an $85.4 billion cash and stock deal.

AT&T’s 4.125% notes due 2026, which tightened 10 bps on Wednesday, traded flat on Thursday.

Time Warner’s 2.95% notes due 2026 tightened 6 bps in the secondary market.

BNP Paribas’ $1.75 billion offering of 3.8% senior non-preferred medium-term notes due Jan. 10, 2024 brought to market on Tuesday were seen about 13 bps tighter than issuance.

Fannie Mae brings $3 billion

Fannie Mae sold $3 billion of five-year Benchmark Notes at 99.821 to yield 2.038% on Thursday, according to a news release.

The notes due Jan. 5, 2022 priced with a spread of 14 bps over Treasuries.

Citigroup Global Markets Inc., Goldman Sachs & Co. and Nomura Securities International were the lead managers.

Fannie Mae is a mortgage credit provider based in Washington, D.C.

Comcast sells $2.5 billion

Comcast priced $2.5 billion of senior notes (A3/A-/A-) in two tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.

The company sold $1.25 billion of 3% notes due Feb. 1, 2024 at 99.809 to yield 3.03% and a spread of 85 bps over Treasuries.

Comcast priced $1.25 billion of 3.3% notes due Feb. 1, 2027 at 99.803 to yield 3.323%, or Treasuries plus 95 bps.

BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Wells Fargo Securities, LLC, BofA Merrill Lynch, RBC Capital Markets, LLC and TD Securities (USA) LLC were the bookrunners.

Proceeds will be used for working capital and general corporate purposes.

Comcast is a media and technology company based in Philadelphia.

EIB taps market

The European Investment Bank sold $4 billion of 2.55% five-year benchmark global SEC registered notes at a spread of 37.3 bps over Treasuries, according to a market source on Thursday.

The notes are due March 15, 2022.

J.P. Morgan Securities PLC, Barclays and HSBC Securities (USA) Inc. were the stabilization managers.

The European Investment Bank is a lending institution based in Luxembourg.

Berkshire Hathaway prints

Berkshire Hathaway Finance priced $1.3 billion of floating-rate senior notes (Aa2/AA/) in two parts on Thursday, according to an FWP filing with the SEC.

The company sold $950 million of two-year floating-rate notes at par to yield Libor plus 25 bps.

Berkshire Hathaway Finance also priced $350 million of three-year floating-rate notes at par to yield Libor plus 32 bps.

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

The notes are unconditionally and irrevocably guaranteed by parent company Berkshire Hathaway Inc.

Proceeds will be used to repay at maturity the company’s $1.05 billion outstanding of floating-rate senior notes due 2017 and any remaining proceeds will go towards general corporate purposes.

Berkshire Hathaway Finance also priced €1.1 billion of euro-denominated senior notes in two tranches during the session.

Berkshire-Hathaway Finance is an Omaha, Neb.-based financing arm of Berkshire-Hathaway.

Boardwalk Pipelines prices

Boardwalk Pipelines sold $500 million of 4.45% long 10-year senior notes (Baa3/BBB-/BBB-) on Thursday in line with guidance at a spread of 212.5 bps over Treasuries, according to a market source and an FWP filing with the SEC.

The notes due July 15, 2027 priced at 99.659 to yield 4.491%.

Barclays, Mizuho Securities USA Inc., MUFG, Wells Fargo Securities, LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC were the bookrunners.

The notes are fully and unconditionally guaranteed by parent company Boardwalk Pipeline Partners, LP.

Proceeds will be used for general partnership purposes, including repayment of debt, acquisitions, capital expenditures and additions to working capital.

Boardwalk Pipelines is a Houston-based owner and operator of natural pipelines and storage facilities.

American Airlines sells

American Airlines sold $197,777,000 of 4.95% class B series 2017-1B pass-through certificates at par on Thursday, according to an FWP filed with the SEC.

The notes have a final distribution date of Aug. 15, 2026 and an initial average life of 5.5 years.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. were the lead managers.

Proceeds will be used to purchase new aircraft.

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

AT&T unchanged

AT&T’s 4.125% notes due 2026 traded flat on the day at 146 bps bid after tightening 10 bps in the previous session, according to a market source.

AT&T (Baa1/BBB+/A-) priced a $900 million add-on to the bonds on May 3 at Treasuries plus 150 bps. The notes originally were sold on Jan. 29, 2016 in a $1.5 billion offering at 195 bps over Treasuries.

The telecommunications company is based in Dallas.

Time Warner firms

Time Warner’s existing 2.95% notes due 2026 traded 6 bps better on Thursday in the secondary market at 134 bps bid, a source said.

Time Warner (Baa2/BBB/BBB+) sold $800 million of the notes on May 5 at a spread of 135 bps over Treasuries.

The media and entertainment company is based in New York.

BNP Paribas tightens

BNP Paribas’ 3.8% notes due Jan. 10, 2024 were seen tighter at 147 bps offered early Thursday, according to a market source.

BNP Paribas sold $1.75 billion of the notes (Baa2/A-/) on Tuesday at a spread of 160 bps over Treasuries.

The banking and financial services company is based in Paris.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.