High-grade supply heavy; JPMorgan, Dow Chemical, Archer-Daniels-Midland, Santander price

By Cristal Cody

Tupelo, Miss., Nov. 28 – JPMorgan Chase & Co. led heavy investment-grade deal volume on Wednesday with a $5 billion two-part offering of notes that priced on the tight side of guidance.

Dow Chemical Co. also came by the primary market to sell $2 billion of senior notes in three parts following fixed-income investor calls held in the previous session.

Archer-Daniels-Midland Co. sold $1 billion of senior notes in two tranches.

American Electric Power Co., Inc. priced a $1 billion two-part offering of senior notes.

Santander Holdings USA, Inc. sold $1 billion of three-year fixed-rate notes and dropped a planned floating-rate tranche.

Aviation Capital Group LLC placed $800 million of senior notes in two tranches during the session.

ERP Operating LP priced an upsized $400 million of 10-year green notes.

Tyco Electronics Group SA sold $350 million of floating-rate notes due 2020.

Also, McKesson Corp. and State Street Corp. were offering notes.

In SSA supply, the European Investment Bank priced $1 billion of three-year global floating-rate notes.

High-grade issuers have priced nearly $30 billion of bonds week to date, compared to market expectations of about $10 billion to $20 billion of deal volume.

The Markit CDX North American Investment Grade 31 index closed the day about 4 basis points better at a spread of 75 bps.

JPMorgan sells $5 billion

JPMorgan Chase (A2/A-/AA-) priced $5 billion of fixed-to-floating-rate notes and fixed-rate notes on the tight side of guidance, according to a market source.

A $2.5 billion tranche of 4.023% six-year fixed-to-floating-rate notes priced with a spread of Treasuries plus 115 bps. The notes will reset to a floating rate after the initial fixed-rate period.

The $2.5 billion of 4.452% 11-year notes came at a spread of Treasuries plus 140 bps.

J.P. Morgan Securities LLC was the bookrunner.

The financial services company is based in New York City.

Dow Chemical prices

Dow Chemical sold $2 billion of senior notes (Baa2/BBB/BBB+) in three parts on Wednesday on the tight side of guidance, according to a market source.

A $500 million tranche of 4.55% notes due Nov. 30, 2025 priced with a spread of Treasuries plus 160 bps.

The company sold $600 million of 4.8% 10-year notes at a Treasuries plus 175 bps spread.

It also priced $900 million of 5.55% 30-year bonds with a 220 bps over Treasuries spread.

BofA Merrill Lynch, Citigroup Global Markets Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and SMBC Nikko Securities America Inc. were the bookrunners.

Dow Chemical is a specialty chemicals company based in Midland, Mich.

Archer-Daniels prints

Archer-Daniels-Midland priced $1 billion of senior notes (A2/A/A) in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

A $400 million tranche of 3.375% notes due March 15, 2022 priced at 99.896 to yield 3.41%. The notes were sold with a Treasuries plus 58 bps spread.

The company sold $600 million of 4.5% notes due 2049 at 98.945 to yield 4.565%, or a spread of 123 bps over Treasuries.

Barclays, Deutsche Bank Securities Inc., BofA Merrill Lynch, Citigroup Global Markets and J.P. Morgan Securities were the bookrunners.

The Chicago-based company processes agricultural commodities and manufactures food and feed ingredients.

American Electric sells notes

American Electric Power sold $1 billion of senior notes (Baa1/BBB+/) in two tranches on Wednesday, according to an FWP filing with the SEC.

The company priced $400 million of 3.65% three-year notes at 99.938 to yield 3.672%, or a spread of Treasuries plus 83 bps.

American Electric Power sold $600 million of 4.3% 10-year notes at 99.718 to yield 4.335%, or a Treasuries plus 128 bps spread.

Barclays, Morgan Stanley, Citigroup Global Markets, J.P. Morgan Securities and Mizuho Securities were the bookrunners.

American Electric Power is a Columbus, Ohio-based electricity provider.

Aviation Capital prices

Aviation Capital Group priced $800 million of senior notes (/A-/BBB+) in two tranches on Wednesday, according to a market source.

The company priced $500 million of floating-rate notes due June 1, 2021 at Libor plus 95 bps.

The floaters were talked to price in the Libor plus 95 bps to 100 bps area, tighter than initial price talk in the Libor plus 105 bps area.

A $300 million tranche of 4.375% note due Jan. 30, 2024 priced on top of guidance at a Treasuries plus 175 bps spread. Initial price talk was in the Treasuries plus 175 bps to 180 bps area.

Citigroup Global Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities, RBC Capital Markets, LLC and Wells Fargo Securities LLC were the bookrunners.

Aviation Capital Group, a privately-held subsidiary of Pacific Life Insurance Co., is a global aircraft leasing company based in Newport Beach, Calif.

Santander brings $1 billion

Santander Holdings USA sold $1 billion of 4.45% three-year senior notes (Baa3/BBB+/BBB+) at 99.823 to yield 4.514%, according to a market source and an FWP filing with the SEC.

The company priced the notes with spread of 167 bps over Treasuries, on the tight side of guidance.

A tranche of senior floating-rate notes was dropped from the final sale.

J.P. Morgan Securities, RBC Capital Markets, Santander Investment Securities Inc. and UBS Securities LLC were the bookrunners.

Boston-based Santander Holdings USA is a wholly owned subsidiary of Madrid-based Banco Santander, SA.

ERP Operating upsizes

ERP Operating placed $400 million of 4.15% 10-year green notes (A3/A-/A) on Wednesday at a spread of 112 bps over Treasuries, according to a market source.

The deal was upsized from $350 million.

The notes priced on the tight side of guidance in the Treasuries plus 115 bps area, plus or minus 3 bps, and better than initial talk in the Treasuries plus 125 bps area.

BofA Merrill Lynch, Citigroup Global Markets and Wells Fargo Securities were the bookrunners.

The unit of apartment property builder and manager Equity Residential is based in Chicago.

EIB raises $1 billion

The European Investment Bank (Aaa/AAA/AAA) priced $1 billion of global floating-rate notes due Oct. 8, 2021 during the session at SOFR plus 32 bps, according to a market source.

The notes priced on top of talk.

Citigroup Global Markets and TD Securities (USA) LLC were the lead managers.

The lender for the European Union is based in Kirchberg, Luxembourg.

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