Georgia Power, Aker, Credit Agricole, Ares, Jabil, NWB, IBRD price; deal pipeline grows

By Cristal Cody

Tupelo, Miss., Jan. 8 – Investment-grade corporate and sovereign, supranational and agency issuers priced about $14 billion of bonds over Wednesday’s session.

The $5.5 billion of high-grade corporate deals brings week to date volume to more $45 billion.

Corporate issuers on Wednesday included Georgia Power Co., Aker BP ASA, Credit Agricole SA, Ares Capital Corp. and Jabil Inc.

In SSA supply, International Bank for Reconstruction and Development, Nederlandse Waterschapsbank NV, Israel and Fannie Mae tapped the primary market.

Swedish Export Credit Corp. also offered $500 million of two-year fixed-rate notes.

Meanwhile over the session, Nomura Holdings Inc. marketed a two-part registered offering of fixed-rate senior notes.

Western Midstream Operating, LP held fixed income investor calls for a five-tranche offering of senior notes.

Avolon Holdings Ltd. subsidiary Avolon Holdings Funding Ltd. also held investor calls on Wednesday for a Rule 144A and Regulation S offering of dollar-denominated senior notes.

In addition, Ohio National Financial Services, Inc. started a two-day session of fixed income investor calls for a dollar-denominated Rule 144A and Regulation S senior issue.

In the secondary market, new corporate bonds are mixed but have traded on average more than 2 basis points tighter than issuance, a source said.

The Markit CDX North American Investment Grade 33 index closed Wednesday at a spread of 45.7 bps.

Georgia Power prices $1.5 billion

Georgia Power priced $1.5 billion of new and reopened senior notes (Baa1/A-/A-) in three tranches on Wednesday, according to a market source and FWP filings with the Securities and Exchange Commission.

The company sold $700 million of 2.1% notes due July 30, 2023 at a 50 bps over Treasuries spread.

Initial price talk was at the Treasuries plus 70 bps area.

The notes were placed at 99.979 to yield 2.106%.

A $500 million tranche of 3.7% notes due Jan. 30, 2050 priced at 99.674 to yield 3.718%, or a spread of 135 bps over Treasuries, compared to initial guidance in the Treasuries plus 150 bps to 155 bps area.

Georgia Power also priced a $300 million tap of its 2.65% notes due Sept. 15, 2029 at 98.516 to yield 2.826% and a Treasuries plus 95 bps spread.

Initial talk was in the Treasuries plus 110 bps area.

The company originally sold $350 million of the notes on Sept. 4, 2019 at 99.877 to yield 2.664%, or a spread of 120 bps over Treasuries. The total outstanding is now $650 million.

Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and MUFG were the bookrunners.

The electric utility is based in Atlanta.

Aker sells two tranches

Aker priced a $1.5 billion Rule 144A and Regulation S split-rated offering of senior notes (Ba1/BBB-/BBB-) in two tranches on Wednesday, according to a market source.

The company sold $500 million of 3% five-year notes at a spread of Treasuries plus 140 bps, versus initial talk in the 170 bps spread area.

A $1 billion tranche of 3.75% 10-year notes priced with a Treasuries plus 190 bps spread. Initial price talk was in the Treasuries plus 220 bps area.

Citigroup, DNB Markets, Inc., ING Financial Markets LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.

Aker BP is an oil exploration and development company based in Trondheim, Norway.

Credit Agricole prints $1.25 billion

Credit Agricole priced $1.25 billion of 3.25% subordinated notes due Jan. 14, 2030 (Baa1/A/) on Wednesday at a spread of 145 bps over Treasuries, according to a market source.

Initial price talk was in the Treasuries plus 175 bps area.

Credit Agricole Corporate and Investment Bank was the bookrunner.

Credit Agricole is an investment banking company based in Montrouge, France.

Ares Capital in primary

Ares Capital priced $750 million of 3.25% five-year senior notes (Baa3/BBB-/BBB) on Wednesday at a spread of 165 bps over Treasuries, according to a market source and an FWP filing.

Initial guidance on the notes due July 15, 2025 was in the Treasuries plus 190 bps area.

The notes priced at 99.686 to yield 3.313%.

BofA Securities, Inc., J.P. Morgan, SMBC Nikko Securities America, Inc., BMO Capital Markets, LLC, Mizuho, Morgan Stanley & Co. LLC, MUFG, RBC Capital Markets, LLC and Wells Fargo were the bookrunners.

The specialty finance company is based in New York.

Jabil sells notes

Jabil sold $500 million of 3.6% senior notes due Jan. 15, 2030 (Baa3/BBB-/BBB-) at 99.833 to yield 3.62% on Wednesday, according to a market source and an FWP filing.

The notes priced at a Treasuries plus 175 bps spread.

Initial price talk was in the Treasuries plus 200 bps to 212.5 bps area with guidance later tightened to the 180 bps spread area.

BofA Securities, Mizuho, MUFG, SMBC Nikko, BNP Paribas Securities Corp., Citigroup and J.P. Morgan were the bookrunners.

The electronic product solutions company is based in St. Petersburg, Fla.

IBRD raises $3.5 billion

World Bank priced a $3.5 billion offering of 1.625% global notes due Jan. 15, 2025 (Aaa/AAA/AAA) on Wednesday at mid-swaps plus 8 bps, or a spread of 7.6 bps over Treasuries, according to a market source.

The notes were initially talked to price with a spread in the mid-swaps plus 9 bps area.

BMO Capital Markets, Citigroup, J.P. Morgan and TD Securities (USA) LLC were the bookrunners.

The global development financing cooperative is based in Washington, D.C.

Israel prices $3 billion offering

Israel (A1/AA-/A+) priced a $3 billion two-tranche offering of fixed-rate notes on Wednesday, a market source said.

The deal included a $1 billion tranche of 2.5% notes due Jan. 15, 2030 that priced at a spread of Treasuries plus 68 bps, tighter than guidance in the Treasuries plus 75 bps area.

Israel sold $2 billion of 3.375% notes due Jan. 15, 2050 at a Treasuries plus 115 bps spread. Guidance on the 2050 notes was in the Treasuries plus 120 bps area.

The state held a roadshow and fixed income investor calls on Monday and Tuesday in Boston and London.

BofA Securities, Citigroup and Goldman Sachs were the bookrunners.

NWB Bank prices $2 billion

NWB Bank priced a $2 billion offering of 1.75% five-year notes at mid-swaps plus 16 bps, or a Treasuries plus 15.1 bps spread, on Wednesday, according to a market source.

The notes due Jan. 15, 2025 (Aaa/AAA/) were initially talked to price in the mid-swaps plus 18 bps area with guidance tightened to mid-swaps plus 16 bps.

BofA Securities, Daiwa Capital Markets Inc., Nomura Securities International, plc and RBC Capital Markets were the bookrunners of the Rule 144A and Regulation S transaction.

The local government funding agency is based in The Hague, the Netherlands.

Western Midstream preps five-part deal

Western Midstream (Ba1/BBB-/BBB-) held fixed income investor calls on Wednesday for a five-tranche offering of senior notes, according to market sources.

The company announced the registered offering on Tuesday.

Barclays, Citigroup, Deutsche Bank Securities Inc. and PNC Capital Markets LLC are the bookrunners.

The Woodlands, Texas-based company owns, develops and operates midstream energy assets.

Avolon in pipeline

Avolon Holdings Funding (Baa3/BBB-/BBB-) is holding fixed income investor calls on Wednesday, according to market sources.

The company plans to price dollar-denominated senior notes in an upcoming Rule 144A and Regulation S offering.

Barclays, J.P. Morgan, Natixis, SG Securities and Wells Fargo are the bookrunners.

The aircraft leasing company is based in Dublin.

Ohio National markets issue

Ohio National Financial Services plans to price a dollar-denominated Rule 144A and Regulation S offering of senior notes (Baa3/BBB-/), according to a market source.

The company is holding fixed income investor calls on Wednesday and Thursday.

BofA Securities, Citigroup and BMO Capital Markets are the bookrunners.

Ohio National Financial Services is a Cincinnati-based life insurance and disability income insurance provider.

Nomura holds deal calls

Nomura Holdings marketed a two-part registered offering of fixed-rate senior notes due 2025 and 2030 on Wednesday, according to an informed source and a 424B5 filing with the Securities and Exchange Commission.

The company held global fixed income investor calls during the session in the United States, Europe and Asia markets.

Nomura Securities and Citigroup are the bookrunners.

The financial holding company is based in Tokyo.

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