Carrier, Bank of New Zealand, Amphenol, Carlisle, Oaktree price; Otis in queue; inflows heavy

By Cristal Cody

Tupelo, Miss., Feb. 13 – Carrier Global Corp. tapped the high-grade primary market on Thursday with a $9.25 billion six-part offering of senior notes as part of its spin-off from United Technologies Corp.

The deal attracted a final order book of more than $40 billion.

Also during the session, Carlisle Cos. Inc. priced $750 million of 10-year notes.

Bank of New Zealand came with $750 million of five-year notes.

Amphenol Corp. brought $400 million of five-year senior notes to the market.

Oaktree Specialty Lending Corp. sold $300 million of five-year senior notes after holding fixed income investor calls earlier in the week.

In other issuance, AT&T Inc. priced $2.9 billion of Formosa bonds.

Also, Freddie Mac sold $3 billion of five-year notes.

Coming up on Friday, Otis Worldwide Corp., which also is being spun off from United Technologies, is expected to hold fixed income investor calls for a possible $5.3 billion senior note (Baa2/BBB/) offering.

High-grade issuers have priced more than $29 billion of bonds week to date.

About $25 billion to $35 billion of supply was expected this week, according to syndicate sources.

Corporate investment-grade fund inflows climbed to $6.23 billion for the past week ended Wednesday, up from $4.9 billion in the previous week and $4.38 billion in the prior week, according to Lipper US Fund Flows.

Net inflow year to date totals more than $34 billion.

The Markit CDX North American Investment Grade 33 index closed mostly unchanged at a spread of 43.88 basis points.

Carrier sells six tranches

Carrier Global sold $9.25 billion of senior notes (Baa3/BBB/) in six tranches in the offering on Thursday, according to a market source.

A $500 million tranche of 1.923% three-year notes priced at a spread of 50 bps over Treasuries, tighter than initial talk in the 75 bps area.

A $2 billion offering of 2.242% five-year notes priced at a Treasuries plus 80 bps spread. Initial price talk was in the 100 bps over Treasuries area.

Carrier Global sold $1.25 billion of 2.493% seven-year notes with a 95 bps spread over Treasuries, versus initial talk at the 115 bps area.

A $2 billion tranche of 2.722% 10-year notes were sold at a spread of 110 bps over Treasuries, 20 bps tighter than initial talk.

Carrier Global placed $1.5 billion of 3.377% 20-year notes at a spread of Treasuries plus 130 bps.

Initial price talk was in the 150 bps over Treasuries area.

Finally, $2 billion of 3.577% 30-year notes priced with a 150 bps over Treasuries spread.

The notes were initially talked to price in the Treasuries plus 170 bps area.

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

Farmington, Conn.-based Carrier Global is a heating and cooling systems provider.

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

Carlisle prices $750 million

Carlisle Cos. priced $750 million of 2.75% 10-year notes (Baa2/BBB/) on the tight side of guidance Thursday at a spread of 128 bps over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.

Initial price talk was in the Treasuries plus 150 bps area.

The notes priced at 98.756 to yield 2.894%.

J.P. Morgan, BofA Securities, Inc. and Wells Fargo Securities LLC were the bookrunners.

The diversified manufacturer is based in Scottsdale, Ariz.

Bank of New Zealand prints

Bank of New Zealand priced $750 million of 2% five-year notes (A1/AA-) on Thursday at a spread of Treasuries plus 68 bps, according to a market source.

Initial price talk was in the Treasuries plus low 80 bps area.

J.P. Morgan, Morgan Stanley, nabSecurities, LLC and TD Securities (USA) LLC were the bookrunners.

The bank is based in Auckland, New Zealand.

Amphenol sells notes

Amphenol priced $400 million of 2.05% five-year senior notes (Baa1/BBB+/) at 99.829 to yield 2.086% on Thursday, according to a market source and an FWP filing.

The notes priced at a spread of 65 bps over Treasuries, tighter than guidance in the 70 bps area, plus or minus 3 bps, and initial talk in the 87.5 bps spread area.

BofA Securities, Mizuho Securities USA Inc., TD Securities (USA) LLC, HSBC Securities (USA) Inc. and Wells Fargo Securities were the bookrunners.

The designer, manufacturer and marketer of electric, electronic and fiber optic components is based in Wallingford, Conn.

Oaktree Specialty prices

Oaktree Specialty Lending (Baa3//BBB-) priced $300 million of 3.5% five-year senior notes on Thursday at 99.153 to yield 3.687% and a spread of 225 bps over Treasuries, according to a market source and an FWP filing.

The notes priced on the tight side of guidance in the 230 bps area and better than initial talk at the 250 bps over Treasuries area.

J.P. Morgan, BofA Securities, RBC Capital Markets, LLC and ING Financial Markets LLC were the bookrunners.

Oaktree held fixed income investor calls for the offering on Monday and Tuesday.

The Los Angeles-based specialty finance company is managed by Oaktree Capital Group, LLC.

AT&T sells Formosa bonds

AT&T priced $2,995,000,000 of 4% global notes due June 1, 2049 (Baa2/BBB/A-) on Thursday at par to yield 4%, according to an FWP filing.

BNP Paribas, Taipei Branch, Citibank Taiwan Ltd., Deutsche Bank AG, Taipei Branch and Morgan Stanley Taiwan Ltd. were the bookrunners.

The company plans to list the Formosa bonds on the Taipei Exchange and apply to list the issue on the New York Stock Exchange.

AT&T is a Dallas-based telecommunications company.

Freddie Mac prints $3 billion

Freddie Mac priced $3 billion of 1.5% Reference Notes due Feb. 12, 2025 at 99.923 to yield of 1.516% on Thursday, according to a news release.

The notes priced 8 bps more than the yield on the five-year U.S. Treasury notes.

Bookrunners were Barclays, Nomura Securities International, Inc. and Wells Fargo Securities.

The government-backed mortgage lender is based in McLean, Va.

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