Baker Hughes sells $3.95 billion notes; Martin Marietta, RPM price; BMO to offer notes

By Cristal Cody

Tupelo, Miss., Dec. 6 – Baker Hughes, a GE Co. LLC led deal action in the high-grade bond market on Wednesday with a $3.95 billion three-tranche Rule 144A and Regulation S offering of notes.

Also in the primary market, Martin Marietta Materials Inc. sold $1.4 billion of senior notes in three tranches.

RPM International Inc. came with $300 million of 30-year notes.

In addition, International Bank for Reconstruction and Development, also known as World Bank, priced an upsized $1 billion of four-year global notes.

In other market action, Bank of Montreal held fixed-income investor calls on Wednesday for an offering of dollar-denominated fixed-to-floating rate subordinated notes due 2032, according to a market source and an 424B5 filed with the Securities and Exchange Commission.

BMO Capital Markets Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. and UBS Securities LLC are the bookrunners.

The Markit CDX North American Investment Grade 29 index was slightly softer on the day at a spread of 52 basis points.

Baker Hughes prices notes

Baker Hughes priced $3.95 billion of notes (A3/A-/) in three tranches in the Rule 144A and Regulation S offering on Wednesday, according to a market source.

The company sold $1.25 billion of 2.773% five-year notes at a spread of Treasuries plus 65 bps.

Baker Hughes placed $1.35 billion of 3.337% 10-year notes with a 100 bps spread over Treasuries.

The $1.35 billion tranche of 4.08% 30-year notes priced at a Treasuries plus 135 bps spread.

The notes were sold on the tight side of guidance.

Barclays, Citigroup Global Markets, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC were the active bookrunners.

Baker Hughes is a Houston-based company that provides integrated oilfield products, services and digital solutions.

Martin Marietta sells notes

Martin Marietta Materials’ $1.4 billion offering of senior notes (Baa3/BBB+/) included three tranches on Wednesday, according to a market source.

The company priced $300 million of floating-rate notes due Dec. 20, 2019 at Libor plus 50 bps.

The $500 million tranche of 3.5% 10-year notes priced with a Treasuries plus 120 bps spread.

Martin Marietta sold $600 million of 4.25% 30-year notes with a spread of 155 bps over Treasuries.

The notes priced on the tight side of talk.

Deutsche Bank Securities, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to acquire Panadero Corp. and Panadero Aggregates Holdings, LLC for $1.625 billion in cash and refinance in full at maturity the company’s $300 million of 6.6% senior notes due April 15, 2018.

The producer of construction aggregates is based in Raleigh, N.C.

RPM sells bonds

RPM International priced $300 million of 4.25% 30-year notes (Baa3/BBB/) in its sale at 99.997 to yield 4.25%, or a spread of 153 bps over Treasuries, according to a market source and an FWP filed with the Securities and Exchange Commission.

The notes priced on the tight side of guidance in the Treasuries plus 155 bps area, plus or minus 2 bps.

BofA Merrill Lynch and Wells Fargo Securities were the bookrunners.

Proceeds will be used to repay, redeem or refinance $250 million of 6.5% unsecured senior notes due Feb. 15, 2018 and for general corporate purposes.

RPM is a Medina, Ohio-based company that manufactures and markets specialty chemical products for industrial and consumer markets.

World Bank upsizes

The International Bank for Reconstruction and Development priced $1 billion of 2.125% four-year global notes (Aaa/AAA/) on Wednesday at a spread of 27.8 bps over Treasuries, according to a market source.

The offering was upsized from $500 million.

Deutsche Bank Securities, Goldman Sachs and HSBC Securities (USA) Inc. were the bookrunners.

The global development financing cooperative is based in Washington, D.C.

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