AmEx, Motorola price; Laclede prices tight; Government Properties on deck; Motorola, Aon firm

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 12 – The high-grade primary market’s momentum continued during Tuesday’s session, with issuers raising more than $4.4 billion of supply.

American Express Credit Corp. came to market with the session’s largest offering, pricing $1.9 billion of five-year notes in fixed- and floating-rate tranches.

The session also saw Motorola Solutions Inc. price a $1.4 billion three-part offering of notes in tranches due 2021, 2024 and 2044.

The deal’s orderbook was more than two times oversubscribed, with all three tranches pricing at the tight end of price talk.

In other primary news, Laclede Group Inc. brought to market a $625 million three-part offering of senior notes.

The company priced three-year floaters, along with five-year and 30-year fixed-rate bonds.

Both fixed-rate tranches priced at the tight end of talk, a source noted.

There was also a $350 million add-on priced by Aon plc during the session, which priced around 10 bps tighter compared to initial guidance.

Rounding out the day’s new deals, Old National Bancorp issued an upsized $175 million of 10-year senior notes.

Looking ahead, Government Properties Income Trust announced plans to bring to market a $250 million offering of senior notes this week.

So far, this week has seen $13.8 billion of supply, closing in on the $15 billion to $20 billion range sources had expected the week to see.

AltaGas Ltd. was in the Canadian bond markets with a C$300 million offering of 4.5% 30-year medium-term notes priced at a spread of 185 basis points over the government benchmark, an informed source said.

The Calgary, Alta.-based energy company is a frequent issuer in the market.

“They’ve been a very good performing credit in the past three years,” the source said.

Investment-grade bonds ended the day unchanged to slightly softer, according to market sources.

The Markit CDX North American Investment Grade series 22 index was flat at a spread of 63 bps.

American Express Credit’s 2.25% notes due 2019 traded flat to 2 bps tighter on the offered side in aftermarket trading, according to a trader.

“Just freed up to trade,” the trader said.

Motorola Solutions’ 3.5% notes due 2021 were offered 10 bps tighter in the secondary market, while the company’s 4% notes due 2024 traded mostly unchanged, according to a trader.

Traders did not see Motorola’s tranche of 5.5% bonds due 2044 brought during the session.

In other new issue trading, Laclede’s notes were mixed, according to bond traders.

Aon’s 3.5% notes due 2024 firmed 3 bps on the offered side in aftermarket trading.

AmEx prices $1.9 billion

Tuesday’s primary market saw American Express Credit price $1.9 billion of senior notes (A2/A-/A+) in fixed- and floating-rate tranches due 2019, according to two separate FWP filings with the Securities and Exchange Commission

The sale included $400 million of floating-rate notes due 2019 priced at par to yield Libor plus 49 bps.

The issuer also priced $1.5 billion of 2.25% five-year notes at 99.939 to yield 2.263%, or Treasuries plus 65 bps.

American Express Credit’s 2.25% notes due 2019 traded at 65 bps bid, 63 bps offered in the secondary market soon after the issue priced, a trader said.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., BofA Merrill Lynch and RBC Capital Markets LLC were the joint bookrunners for the deal.

American Express is a New York-based financial services company.

Motorola three-parter

Motorola Solutions was in Tuesday’s market with a $1.4 billion three-tranche offering of senior notes (Baa2/BBB/BBB), according to a market source and an FWP filed with the SEC.

A $400 million tranche of 3.5% notes due 2021 sold with a spread of Treasuries plus 160 bps. The notes sold at 98.789 to yield 3.697%.

There was also $600 million of 4% 10-year bonds priced at 98.054 to yield 4.24%, or Treasuries plus 180 bps

Finally, $400 million of 5.5% 30-year bonds sold at 99.881 to yield 5.508%, or 225 bps over Treasuries.

All three tranches sold at the tight end of talk.

Motorola Solutions’ 3.5% notes due 2021 were offered 10 bps tighter at 150 bps, a trader said.

The company’s 4% notes due 2024 edged tighter to 179 bps offered in secondary trading.

BofA Merrill Lynch, Citigroup Global Markets and Deutsche Bank Securities Inc. were the bookrunners.

Proceeds will be used for general corporate purposes, including pension contributions and the redemption of the company’s $400 million 6% senior notes due 2017.

The communications technology company is based in Schaumburg, Ill.

Laclede prices tight

In other primary news, Laclede Group sold a $625 million three-part offering of senior notes (Baa2/BBB+/BBB+) on Tuesday, according to an informed source and an FWP filed with the SEC.

The sale included $250 million of floating-rate notes due 2017 priced at par to yield Libor plus 75 bps.

A $125 million fixed-rate tranche of 2.55% five-year notes sold at 99.805 to yield 2.592%, or Treasuries plus 98 bps.

There was also a $250 million tranche of 4.7% 30-year bonds sold at 99.905 to yield 4.706%, or Treasuries plus 145 bps.

Both fixed-rate tranches sold at the tight end of talk.

Laclede’s tranche of 2.55% notes due 2019 traded flat at 98 bps bid, a trader said. The notes were quoted by a trader at another desk wider at 119 bps bid.

Laclede’s 4.7% notes due 2044 were quoted offered at 140 bps late in the day.

Credit Suisse Securities (USA) LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to fund the acquisition of Alabama Gas Corp.

The utility holding company is based in St. Louis.

Aon adds on

The session also saw Aon plc sell a $350 million tap of its existing 3.5% senior notes (Baa2/A-/BBB+) due June 14, 2024 with a spread of Treasuries plus 115 bps, according to a market source and an FWP filed with the SEC.

The notes were sold tighter than initial guidance, which was set in the area of Treasuries plus 125 bps.

Pricing was at 99.239 to yield 3.592%.

The original $250 million issue priced with a spread of Treasuries plus 100 bps on May 20.

Aon’s 3.5% senior notes due 2024 firmed to 112 bps offered in the secondary market, a trader said.

The notes are guaranteed by Aon Corp.

Proceeds from the sale will be used for general corporate purposes.

BofA Merrill Lynch, Credit Suisse Securities, Goldman Sachs & Co. and Wells Fargo Securities were the joint bookrunners.

The provider of risk management, insurance and reinsurance brokerage and also human resources solutions and outsourcing services is based in London.

Old National upsizes

Old National Bancorp sold an upsized $175 million of 4.125% senior notes (expected: A3) due 2024 at par to yield Treasuries plus 168 bps on Tuesday, according to an FWP filed with the SEC.

Sandler O’Neill + Partners LP was the bookrunner.

The company intends to use the net proceeds for general corporate purposes, which may include providing capital to support the growth of the business, acquisitions of LSB Financial Corp. and Founders Financial Corp., acquisitions of other financial institutions and repurchases of common stock.

Old National is a financial holding company based in Evansville, Ind.

Government Properties on deck

Government Properties Income Trust is planning to price a $250 million offering of 10-year senior notes on Wednesday, according to a market source and a 424B5 filed with the SEC.

Wells Fargo Securities, Citigroup Global Markets, Jefferies & Co., RBC Capital Markets and UBS Securities LLC are the bookrunners.

Proceeds will be used to repay the $149.8 million remaining outstanding principal amount of the company’s $500 million term loan, or the company’s new term loan, and to reduce amounts outstanding under its revolving credit facility.

Government Properties Income Trust is a real estate investment trust that owns properties leased primarily to the U.S. government and state governments. It is based in Newton, Mass.

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