ABN AMRO Bank, NextEra price; primary activity thins; bonds mixed; credit spreads firm

By Cristal Cody

Tupelo, Miss., Aug. 21 – ABN AMRO Bank NV led deal action on Tuesday with a $2 billion two-tranche offering of notes in the high-grade primary market.

NextEra Energy Capital Holdings Inc. also sold $1.06 billion of floating-rate debentures in two parts during the session.

Week to date, investment-grade issuers have priced more than $5 billion of corporate bonds.

The SSA primary market has been quiet over the past two sessions.

Light primary volume is expected this week with only about $5 billion to $10 billion of supply predicted by market sources.

Volume is expected to ramp up in September with syndicate sources forecasting about $100 billion to as much as $150 billion of new paper.

In the secondary market, bonds were mixed on Tuesday, while credit spreads improved.

United Technologies Corp.’s new senior notes (Baa1/BBB+) traded unchanged to about 6 basis points tighter.

McDonald’s Corp.’s senior medium-term notes (Baa1/BBB+/) priced last week softened about 1 bp.

The Markit CDX North American Investment Grade 30 index closed nearly 2 bps better on Tuesday at a spread of 60 bps.

ABN prices $2 billion

ABN AMRO Bank priced $2 billion of notes (A1/A/A+) in two tranches in the offering on Tuesday, according to a market source.

The company sold $1 billion of floating-rate notes due Aug. 27, 2021 at Libor plus 57 bps.

The $1 billion of 3.4% three-year notes came at a Treasuries plus 75 bps spread.

BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

The Dutch bank is based in Amsterdam.

NextEra sells floaters

NextEra Energy Capital Holdings priced $1,066,000,000 of floating-rate debentures (Baa1/BBB+/A-) in two tranches, according to an FWP filing with the Securities and Exchange Commission.

The company sold $716 million of notes due Aug. 21, 2020 at par to yield Libor plus 40 bps and $350 million of notes due Aug. 28, 2021 at par to yield Libor plus 55 bps.

Wells Fargo Securities LLC was the bookrunner.

NextEra Energy, Inc. will guarantee the notes.

NextEra Energy Capital is a subsidiary of the Juno Beach, Fla.-based energy company.

United Technologies mixed

United Technologies’ 3.65% notes due Aug. 16, 2023 were flat on the day in the secondary market at 84 bps bid, according to a market source.

The company sold $2.25 billion of the five-year notes on Aug. 13 at a 90 bps over Treasuries spread.

United Technologies’ 4.125% notes due Nov. 16, 2028 were quoted tighter at 116 bps bid from 122 bps bid on Monday.

The company priced $3 billion of the 10-year notes in the Aug. 13 offering at a spread of 125 bps over Treasuries.

United Technologies is a Hartford, Conn.-based company that provides technology products and services to the building and aerospace industries.

McDonald’s eases

McDonald’s reopened 3.8% notes due April 1, 2028 eased about 1 bp to 96 bps bid, a market source said.

The issue was reopened in a $550 million tap on Aug. 13 at a Treasuries plus 98 bps spread.

McDonald’s originally sold $500 million of the 10-year notes at a spread of 100 bps over Treasuries on March 14. The total outstanding is $1.05 billion.

McDonald’s 4.45% notes due Sept. 1, 2048 also softened 1 bp during the session to 139 bps bid.

The notes were priced in a $750 million tranche in the offering last week at a spread of 143 bps over Treasuries.

The fast food chain is based in Chicago.

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