Deal supply thins; 3M prices $2 billion; Northwestern Mutual, Newcastle Coal tap primary

By Cristal Cody

Tupelo, Miss., Sept. 21 – 3M Co. led the day’s deal action with a $2 billion three-tranche offering of high-grade notes in light supply on Thursday.

The three tranches priced more than 10 basis points better than initial price thoughts and on the tight side of guidance.

3M priced $650 million of 2.25% notes due March 15, 2023 at 99.934 to yield 2.263% and a spread of 37 bps over Treasuries; $850 million of 2.875% 10-year notes at 99.386 to yield 2.946%, or a spread of 67 bps over Treasuries; and $500 million of 3.625% 30-year bonds at 99.058 to yield 3.677% and a spread of 87 bps plus Treasuries

Also in the primary market, Northwestern Mutual Life Insurance Co. sold $1.2 billion of 30-year surplus notes.

The 3.85% surplus notes priced at a spread of Treasuries plus 107 bps, on the tight side of guidance in the Treasuries plus 110 bps area.

In addition, Newcastle Coal Infrastructure Group Pty Ltd. priced $500 million of 10-year senior secured notes.

The 4.4% notes priced at a spread of Treasuries plus 215 bps, according to market sources.

The Markit CDX North American Investment Grade 29 index eased about 1 bp to close the day at a spread of 60 bps.

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