Occidental Petroleum prices $13 billion; UBS, Public Service, PPG Industries, UDR print

By Cristal Cody

Tupelo, Miss., Aug. 6 – Occidental Petroleum Corp. led primary action in the high-grade bond market on Tuesday with a $13 billion 10-tranche offering of senior notes that priced better than talk.

Also during the session, UBS Group AG sold $1.5 billion of fixed-to-floating-rate notes due Aug. 13, 2030.

Public Service Co. of Colorado priced $550 million of green first mortgage bonds due March 1, 2050 after holding fixed income investor calls on Friday.

PPG Industries, Inc. brought $600 million of fixed-rate notes in two parts to the primary market.

UDR, Inc. sold $400 million of guaranteed medium-term notes due Aug. 15, 2031.

In addition, Motorola Solutions, Inc. priced a $150 million add-on to its 4.6% senior notes due May 23, 2029.

Credit spreads recovered slightly over the session.

The Markit CDX North American Investment Grade 32 index firmed about 3 basis points to a spread of 59 bps after closing the previous session 5 bps wider.

On Monday, supply was light as trade war concerns with China took hold, according to market sources.

NextEra Energy Capital Holdings Inc. priced a $1.5 billion remarketing of two-year debentures, while Mid-America Apartments, LP brought a $250 million add-on to its 3.95% senior notes due March 15, 2029.

About $25 billion to $30 billion of issuance is expected by syndicate sources for the week.

Occidental Petroleum sells 10 tranches

Occidental Petroleum priced $13 billion of senior notes (Baa3/A/) in 10 tranches better than talk on Tuesday, according to a market source.

The company sold $500 million of floating-rate notes due Feb. 8, 2021 at Libor plus 95 bps.

A $500 million tranche of floaters due Aug. 13, 2021 priced at Libor plus 125 bps.

The company sold $1.5 billion of 2.6% fixed-rate notes due Aug. 13, 2021 at a spread of 105 bps over Treasuries.

A $1.5 billion tranche of floating-rate notes due Aug. 15, 2022 priced at Libor plus 145 bps.

Occidental Petroleum sold $2 billion of 2.7% notes due Aug. 15, 2022 at a Treasuries plus 120 bps spread.

A $3 billion tranche of 2.9% five-year notes came at a 140 bps over Treasuries spread.

The company brought $1 billion of 3.2% seven-year notes to the market at a spread of 160 bps over Treasuries.

A $1.5 billion tranche of 3.5% 10-year notes priced at a Treasuries plus 185 bps spread.

A $750 million offering of 4.3% 20-year notes were placed with a spread of 210 bps over Treasuries.

Finally, $750 million of 4.4% 30-year notes priced at a Treasuries plus 225 bps spread.

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

The Los Angeles oil and gas, chemical and midstream company plans to use the proceeds to finance its merger with Anadarko Petroleum Corp.

UBS Group sells $1.5 billion

UBS Group (/A-/A+) priced $1.5 billion of 3.126% fixed-to-floating-rate notes due Aug. 13, 2030 on Tuesday at a spread of 140 bps over Treasuries, according to a market source.

Initial price talk was in the Treasuries plus 155 bps area.

The rate on the notes will reset to a floating rate of Libor plus 146.76 bps after the initial fixed-rate period.

UBS Securities LLC was the bookrunner.

The investment bank and financial services company is based in Zurich and Basel, Switzerland.

PPG Industries prices

PPG Industries priced $600 million of fixed-rate notes (A3/A-/A-) in two tranches on Tuesday, according to a market source and an FWP filed with the Securities and Exchange Commission.

The company sold $300 million of 2.4% five-year notes at 99.827 to yield 2.437%, or a spread of Treasuries plus 90 bps. The notes priced on the tight side of guidance in the 95 bps area.

PPG Industries priced $300 million of 2.8% 10-year notes at 99.732 to yield 2.831%. The notes priced at a Treasuries plus 110 bps spread, on the firm side of talk in the 115 bps spread area.

J.P. Morgan Securities, BNP Paribas Securities Corp., PNC Capital Markets LLC, Citigroup Global Markets and MUFG were the bookrunners.

PPG is a diversified coatings and chemical manufacturing company based in Pittsburgh.

Public Service sells green bonds

Public Service Co. of Colorado sold $550 million of 3.2% green first mortgage bonds due March 1, 2050 (A1/A/A+) on Tuesday at a spread of 100 bps over Treasuries, according to an FWP filing with the SEC.

The notes priced at 98.672 to yield 3.269%.

Barclays, Citigroup Global Markets, PNC Capital Markets and TD Securities (USA) LLC were the bookrunners.

Public Service Co. of Colorado is an electric and natural gas company based in Denver and a subsidiary of Xcel Energy Inc.

UDR raises $400 million

UDR priced $400 million of 3% guaranteed medium-term notes due Aug. 15, 2031 (Baa1/BBB+/) on Tuesday at 99.71 to yield 3.029%, or a spread of Treasuries plus 130 bps, according to an FWP filing with the SEC.

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

The notes are fully and unconditionally guaranteed by United Dominion Realty, LP.

UDR is a real estate investment trust that owns and operates apartment communities.

Motorola brings add-on

Motorola Solutions priced a $150 million add-on to its 4.6% senior notes due May 23, 2029 (Baa3/BBB-/BBB-) on Tuesday at a spread of 200 bps over Treasuries, according to an FWP filing with the SEC.

The notes printed at 106.896 to yield 3.734%.

BofA Securities was the bookrunner.

The notes were first priced in a $650 million offering on May 9 at 99.96 to yield 4.605% and a Treasuries plus 215 bps spread. The total outstanding is $800 million.

Motorola is a telecommunications company based in Schaumburg, Ill.

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