Apple, Intel, Kansas City Power, Kommunalbanken, IADB price; Apple existing notes tighten

By Cristal Cody

Tupelo, Miss., June 13 – Investment-grade primary action slowed on Tuesday with just under $4 billion of bonds reported priced over the session.

Apple Inc. tapped the primary market with $1 billion of 10-year senior notes.

Intel Corp. sold $600 million of seven-year senior notes.

Kansas City Power & Light Co. brought $300 million of 30-year notes to the primary market.

In addition, American Equity Investment Life Holding Co. priced $500 million of 5% split-rated 10-year notes at a Treasuries plus 280 basis points spread.

In SSA issuance, Kommunalbanken AS sold $1 billion of long three-year dollar-denominated notes.

Also, Inter-American Development Bank placed $600 million of five-year global floating-rate notes.

Coming up on Wednesday, the Federal Reserve will hold a press conference to announce its monetary policy decision following a two-day meeting. The Fed is widely expected to raise rates, a market source said.

In secondary market activity, Apple’s existing 3.35% notes due Feb. 9, 2027 tightened about 6 bps to 81 bps bid on Tuesday, a source said. Apple sold $2.25 billion of the notes on Feb. 2 at par to yield a Treasuries plus 88 bps spread.

The Markit CDX North American Investment Grade index firmed 1 bp over the day to close at a spread of 59 bps.

Apple sells $1 billion

Apple sold $1 billion of 3% 10-year senior notes (Aa1/AA+/) on Tuesday at a spread of Treasuries plus 82 bps, according to a market source.

The green bonds were talked to price in the Treasuries plus 85 bps area, plus or minus 3 bps.

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

The notes feature a make-whole call and then a par call, according to a 424B2 filed with the Securities and Exchange Commission.

Proceeds will be used for green energy projects.

Apple previously priced $7 billion of notes in six tranches in May.

The computer and mobile communications device company is based in Cupertino, Calif.

Intel taps primary

Intel priced $600 million of 2.7% seven-year senior notes (A1/A+/A+) on Tuesday at 99.987 to yield 2.702% and a spread of Treasuries plus 68 bps, according to an FWP filing with the SEC.

Citigroup Global Markets Inc. was the bookrunner.

Proceeds will be used for general corporate purposes.

In May, Intel brought a $6.5 billion seven-tranche offering of senior notes to the primary market.

The semiconductor chip maker is based in Santa Clara, Calif.

Kansas City Power prices

Kansas City Power & Light sold $300 million of 4.2% 30-year notes (Baa1/BBB+/) on Tuesday at 99.729 to yield 4.216%, according to a market source and an FWP filing with the SEC.

The notes priced with a spread of Treasuries plus 135 bps, on the tight side of guidance of Treasuries plus 135 bps to 140 bps area.

BNP Paribas Securities Corp. and SunTrust Robinson Humphrey Inc. were the bookrunners.

Proceeds will be used to repay at maturity the company’s $250 million of 5.85% notes, to repay at maturity $31 million of its series 1992 EIRR bonds and for general corporate purposes.

The electric utility is based in Kansas City, Mo.

Kommunalbanken notes

Kommunalbanken (Aaa/AAA/) priced $1 billion of 1.75% dollar-denominated notes due Sept. 15, 2020 on Tuesday at mid-swaps plus 8 bps, or a spread of Treasuries plus 28.4 bps, according to a market source.

The notes were initially talked to price in the mid-swaps plus 10 bps area.

Daiwa Capital Markets Europe Ltd., Deutsche Bank Securities Inc., J.P. Morgan Securities and Toronto-Dominion Bank were the lead managers.

The government-funded lender to municipalities is based in Oslo.

IADB sells floaters

Inter-American Development Bank (Aaa/AAA/) priced $600 million of global floating-rate notes due July 15, 2022 on Tuesday on top of guidance at Libor plus 7 bps, according to a market source.

The five-year notes were talked initially to price at the Libor plus 7 bps area.

BMO Capital Markets Corp., Citigroup Global Markets and Wells Fargo Securities, LLC were the bookrunners.

The provider of development financing for Latin America and the Caribbean is based in Washington, D.C.

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