Global Payments, BMW, McDonald’s, Lloyds, NiSource, AerCap, Wisconsin Public tap primary

By Cristal Cody

Tupelo, Miss., Aug. 7 – High-grade issuers priced more than $10 billion of bonds over Wednesday’s session.

Global Payments Inc. led supply with a $3 billion three-part offering of fixed-rate senior notes.

BMW Finance NV sold $2.25 billion of senior notes in four tranches.

McDonald’s Corp. brought $2 billion of senior medium-term notes in two parts to the primary market.

Lloyds Bank plc sold $1.5 billion of three-year senior notes.

NiSource Inc. came with $750 million of 10-year notes.

AerCap Ireland Capital DAC and AerCap Global Aviation Trust sold $750 million of five-year guaranteed senior notes.

Also, Wisconsin Public Service Corp. priced $300 million of 30-year senior notes on Wednesday.

Volume has been heavier over the past two sessions, with supply week to date led by Occidental Petroleum Corp.’s $13 billion 10-tranche offering of senior notes that priced in the previous session.

High-grade issuers have sold more than $26 billion of bonds this week.

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

In the secondary market, Occidental Petroleum’s $13 billion of senior notes (Baa3/A/) tightened about 7 basis points to 11 bps, a source said.

The company’s $3 billion tranche of 2.9% notes due Aug. 15, 2024 firmed about 7 bps from where the notes priced at a 140 bps over Treasuries spread.

Occidental Petroleum’s $1.5 billion tranche of 3.5% notes due Aug. 15, 2029 improved about 8 bps in aftermarket trading. The notes priced at a Treasuries plus 185 bps spread.

The Markit CDX North American Investment Grade 32 index eased less than 1 bp to close Wednesday at a spread of 60 bps.

Global Payments prices $3 billion

Global Payments priced a $3 billion three-part offering of fixed-rate senior notes on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

A $1 billion tranche of 2.65% notes due Feb. 15, 2025 priced at 99.975 to yield 2.655%, or a spread of 115 bps over Treasuries.

The company sold $1.25 billion of 3.2% 10-year notes at 99.686 to yield 3.237%. The notes priced with a Treasuries plus 155 bps spread.

Global Payments placed $750 million of 4.15% 30-year notes at 99.744 to yield 4.165% and a Treasuries plus 195 bps spread.

The active bookrunners were BofA Securities, Inc. and J.P. Morgan Securities LLC.

Proceeds will be used for the company’s planned merger with Total System Services, Inc.

Global Payments is an Atlanta-based provider of payment technology services.

BMW Finance prices $2.25 billion

BMW Finance priced $2.25 billion of senior notes (A1/A+/) in four tranches on Wednesday, according to a market source.

The company sold $500 million of three-year floating-rate notes at Libor plus 79 bps.

A $750 million tranche of 2.25% three-year fixed-rate notes priced at a spread of Treasuries plus 75 bps.

A $500 million tranche of 2.4% five-year notes were placed with a 90 bps over Treasuries spread.

The company sold $500 million of 2.85% 10-year notes at a spread of 115 bps over Treasuries.

Barclays, Citigroup Global Markets Inc., Mizuho Securities USA LLC, SG Americas Securities, LLC and TD Securities (USA) LLC were the bookrunners.

The Netherlands-based BMW Finance is a financing arm for the BMW German auto manufacturer.

McDonald’s raises $2 billion

McDonald’s sold $2 billion of senior medium-term notes (Baa1/BBB+/) in two tranches on Wednesday, according to an FWP filing with the SEC.

McDonald’s priced $1 billion of 2.625% 10-year notes at 99.264 to yield 2.709%, or a spread of Treasuries plus 100 bps.

A $1 billion tranche of 3.625% 30-year notes priced at 99.075 to yield 3.732%. The notes came at a Treasuries plus 150 bps spread.

BofA Securities, Citigroup Global Markets, J.P. Morgan Securities, MUFG, SG Americas Securities, Goldman Sachs & Co. LLC, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.

The fast food chain is based in Chicago.

Lloyds Bank brings $1.5 billion

Lloyds Bank sold $1.5 billion of 2.25% senior notes due Aug. 14, 2022 at a spread of Treasuries plus 85 bps on Wednesday, according to an FWP filing.

The notes (Aa3/A+/A+) priced at 99.677 to yield 2.362%.

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

The bank and financial services group is based in London.

NiSource raises $750 million

NiSource sold $750 million of 2.95% 10-year notes on Wednesday at a spread of 130 bps over Treasuries, according to an FWP filed with the SEC.

The notes (Baa2/BBB+/BBB) priced at 99.826 to yield 2.97%.

Citigroup Global Markets, Credit Suisse Securities (USA) LLC, Mizuho Securities and U.S. Bancorp Investments were the bookrunners.

NiSource is a Merrillville, Ind.-based company with businesses in natural gas transmission, storage and distribution, and electricity generation, transmission and distribution.

AerCap sells $750 million

AerCap Ireland Capital and AerCap Global Aviation Trust sold $750 million of 2.875% five-year guaranteed senior notes (Baa3/BBB-/BBB-) on Wednesday at a spread of 147 bps over Treasuries, according to an FWP filing with the SEC.

The notes priced at 99.654 to yield 2.95%.

Bookrunners were BNP Paribas Securities Corp., Citigroup Global Markets, Credit Agricole Securities (USA) Inc., RBC Capital Markets LLC, TD Securities, Barclays, BofA Securities, Credit Suisse Securities, Deutsche Bank Securities Inc., Goldman Sachs, HSBC Securities (USA) Inc., J.P. Morgan Securities, Mizuho Securities, Morgan Stanley & Co. LLC, MUFG, Santander Investment Securities Inc., SunTrust Robinson Humphrey and Wells Fargo Securities.

The notes are guaranteed by AerCap Holdings NV.

AerCap is an independent aircraft leasing company based in Amsterdam.

Wisconsin Public Service prices

Wisconsin Public Service priced $300 million of 3.3% 30-year senior notes on Wednesday at a spread of 112 bps over Treasuries, according to an FWP filing.

The notes (A2/A-/A+) priced at 99.885 to yield 3.306%.

BofA Securities, MUFG, PNC Capital Markets LLC and Wells Fargo Securities were the bookrunners.

The natural gas and electric utility is a Green Bay, Wis.-based subsidiary of WEC Energy Group, Inc.

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