Vistra, John Deere, Duke, Santander, Liberty Mutual, CDP among issuers; Swedish Export on tap

By Cristal Cody

Tupelo, Miss., June 4 – More than $6 billion of high-grade notes priced over Tuesday’s session in both the corporate and sovereign, supranational and agency primary markets.

Vistra Energy Corp. affiliate Vistra Operations Co. LLC sold $2 billion of senior secured notes.

John Deere Capital Corp. priced $1.5 billion of senior medium-term notes in three tranches.

Duke Energy Corp. tapped the primary market with $1.2 billion of senior notes in two parts.

Santander Holdings USA, Inc. sold $1 billion of five-year senior notes.

Liberty Mutual Group Inc. priced an upsized $350 million of 30-year senior notes.

Oklahoma Gas & Electric Co. sold $300 million of long 10-year senior notes.

Federal Realty Investment Trust priced $300 million of 10-year notes on Tuesday.

In SSA supply, CDP Financial Inc. sold $2 billion of two-year guaranteed senior notes.

In other action on Tuesday, split-rated issuer Stericyle, Inc. (/BBB-/BB+) started a roadshow for a $550 million offering of five-year senior notes.

Also during the session, A.P. Moller-Mærsk A/S (Baa3/BBB/) wrapped a roadshow that started Friday for a dollar-denominated Rule 144A and Regulation S offering of notes.

Coming up on Wednesday, Swedish Export Credit Corp. plans to price $500 million of 18-month global floating-rate notes.

Also on Wednesday, Parker-Hannifin Corp. is set to hold fixed income investor calls for an offering of senior notes.

High-grade corporate issuers priced about $2.5 billion of bonds on Monday, led by Home Depot Inc.’s $1.4 billion two-part sale of senior notes.

Supply is expected to reach the $10 billion to $15 billion range this week, according to market sources.

The Markit CDX North American Investment Grade 32 index tightened more than 4 basis points over the day to a spread of 65 bps.

Vistra Energy prices $2 billion

Vistra Operations (Ba1/BBB-/) priced $2 billion of senior secured notes in a Rule 144A and Regulation S offering on Tuesday, according to a market source and a company news release.

A $1.2 billion tranche of 3.55% five-year notes priced at 99.807 and a spread of 170 bps over Treasuries.

Initial price talk was in the Treasuries plus 200 bps area.

Vistra sold $800 million of 4.3% 10-year notes at 99.784 and a Treasuries plus 220 bps spread. The notes were initially talked to price with a 250 bps over Treasuries spread.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC were the bookrunners.

The integrated power company is based in Irving, Texas.

John Deere brings three tranches

John Deere Capital priced $1.5 billion of senior medium-term notes (A2/A/A) in three tranches on Tuesday, according to FWP filings with the Securities and Exchange Commission.

The company sold $400 million of two-year floating-rate notes at par to yield Libor plus 40 bps.

A $500 million tranche of 2.3% notes due June 7, 2021 priced at 99.932 to yield 2.335% and a spread of 45 bps over Treasuries.

The company priced $600 million of 2.6% notes due March 7, 2024 at 99.829 to yield 2.639%, or a Treasuries plus 75 bps spread.

Citigroup Global Markets, Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and J.P. Morgan Securities were the bookrunners.

John Deere Capital is a financing arm of Moline, Ill.-based farm equipment supplier Deere & Co.

Duke Energy prices $1.2 billion

Duke Energy priced $1.2 billion of senior notes (Baa1/BBB+/BBB+) in two tranches on Tuesday, according to an FWP filed with the SEC.

The company sold $600 million of 3.4% 10-year notes at 99.848 to yield 3.418% and a spread of 130 bps over Treasuries.

Duke Energy placed $600 million of 4.2% 30-year notes at 99.542 to yield 4.227%, or a Treasuries plus 162 bps spread.

MUFG, Mizuho Securities, PNC Capital Markets LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC were the bookrunners.

The energy company is based in Charlotte, N.C.

Santander sells $1 billion

Santander Holdings sold $1 billion of 3.5% five-year senior notes (Baa3/BBB+/BBB+) on Tuesday at 99.914 to yield 3.519%, according to a market source and an FWP filing with the SEC.

The company priced the notes on the tight side of guidance at a spread of 163 bps over Treasuries.

A tranche of senior floating-rate notes was dropped from the offering.

Barclays, Citigroup Global Markets, RBC Capital Markets LLC and Santander Investment Securities Inc. were the bookrunners.

Boston-based Santander Holdings USA is a wholly owned subsidiary of Madrid-based Banco Santander, SA.

Liberty Mutual upsizes

Liberty Mutual Group priced an upsized $350 million of 4.5% 30-year senior notes (Baa2/BBB/BBB-) on Tuesday at a spread of 190 bps over Treasuries, according to a market source.

Price guidance was in the Treasuries plus 190 bps to 195 bps area.

The deal was upsized from $300 million.

Credit Suisse Securities and J.P. Morgan Securities were the active bookrunners of the Rule 144A and Regulation S offering. HSBC Securities was a passive bookrunner.

Liberty Mutual is a Boston-based property and casualty insurance company.

Oklahoma Gas & Electric prices

Oklahoma Gas & Electric sold $300 million of 3.3% senior notes due March 15, 2030 on Tuesday at 99.707 to yield 3.333%, according to an FWP filing with the SEC.

The notes (A3/BBB+/A) priced at a spread of 120 bps over Treasuries.

J.P. Morgan Securities, MUFG and U.S. Bancorp Investments Inc. were the bookrunners.

The electric utility is based in Oklahoma City.

Federal Realty Trust prints

Federal Realty Investment Trust priced $300 million of 3.2% 10-year notes (A3/A-/) on Tuesday at a spread of 110 bps over Treasuries, according to a market source and an FWP filing with the SEC.

Price guidance was in the Treasuries plus 115 bps area, plus or minus 5 bps. The notes were initially talked to print with a Treasuries plus 130 bps spread.

The trust sold the notes at 99.838 to yield 3.219%.

BofA Securities Inc., Jefferies LLC, U.S. Bancorp Investments, Regions Securities LLC, SunTrust Robinson Humphrey Inc. and TD Securities were the bookrunners.

The real estate investment trust for retail and mixed-use buildings is based in Rockville, Md.

CDP Financial prices $2 billion

CDP Financial (Aaa/AAA/AAA) priced $2 billion of 2.125% two-year guaranteed senior notes in a Rule 144A and Regulation S offering on Tuesday at mid-swaps plus 19 bps, or a Treasuries plus 22.65 bps spread, according to a market source.

Initial price talk on the notes due June 11, 2021 was in the mid-swaps plus 19 bps area.

BMO Capital Markets Corp., Citigroup Global Markets, Goldman Sachs and HSBC Securities were the bookrunners.

Parent La Caisse de depot et placement du Quebec will guarantee the notes.

CDP Financial is a Montreal-based financing arm of the public and parapublic pension plan and insurance program manager.

Swedish Export Credit set to price

Swedish Export Credit plans to price $500 million of global floating-rate notes due Dec. 14, 2020 (Aa1/AA+/) on Wednesday, according to a market source.

The registered notes were initially talked to price in the Libor plus 5 bps area.

BNP Paribas Securities Corp., Citigroup Global Markets and Morgan Stanley & Co. LLC are the bookrunners.

Swedish Export Credit is a Stockholm-based government-owned financial services company for the Swedish export industry.

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