Duke Energy, Kimco tap market; RBS, FMS in pipeline; bonds mixed; credit spreads flat

By Cristal Cody

Eureka Springs, Ark., Aug. 9 – New high-grade bond issuance on Tuesday included deals from Duke Energy Corp. and Kimco Realty Corp.

Duke Energy sold $3.75 billion of senior notes in three tranches: $750 million of 1.8% five-year notes at 99.99 to yield 1.802% and a spread of 70 basis points over Treasuries, $1.5 billion of 2.65% 10-year notes at 99.692 to yield 2.685% and a spread of 115 bps plus Treasuries and $1.5 billion of 3.75% 30-year notes at 99.944 to yield 3.753% and a spread of 150 bps over Treasuries.

Barclays, Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc., MUFG and UBS Securities LLC were the bookrunners.

Kimco Realty priced $500 million of 10-year notes.

General Dynamics Corp., Bank of New York Mellon Corp. and Old Line Bancshares, Inc. also were expected to price new bonds.

Also on Tuesday, Royal Bank of Scotland Group plc kicked off a round of investor meetings in New York and London ahead of an offering of perpetual subordinated contingent convertible additional tier 1 capital notes.

In addition, FMS Wertmanagement joined the deal pipeline with an offering of notes.

The Markit CDX North American Investment Grade index ended the session flat at a spread of 71 basis points.

In the secondary market, Archer-Daniels-Midland Co.’s new $1 billion offering of 2.5% notes due 2026 improved 5 bps.

Boston Properties LP’s 2.75% senior notes due 2026 were unchanged from issuance in early secondary trading.

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