Rockwell Collins, Ford Motor Credit, Dollar General price notes; AT&T, Verizon better

By Cristal Cody

Tupelo, Miss., March 28 – Investment-grade issuers priced more than $11.5 billion of bonds on Tuesday following a quiet Monday of action.

Rockwell Collins, Inc. tapped the primary market with a $4.65 billion five-tranche offering of notes.

Applied Materials, Inc. sold $2.2 billion of senior notes in two parts.

Ford Motor Credit Co. LLC came with a $1.75 billion three-part offering of senior notes.

Keysight Technologies Inc. priced $700 million of 10-year senior notes on Tuesday.

Omega Healthcare Investors, Inc. raised $700 million in a two-part notes offering.

Dollar General Corp. brought $600 million of 10-year senior notes to market.

Oklahoma Gas & Electric Co. sold $300 million of 30-year senior notes.

Also in corporate issuance, United Parcel Service, Inc. priced $142,115,000 of 50-year floating-rate senior notes.

In sovereign supply, Export Development Canada sold $500 million of two-year dollar-denominated notes.

The Markit CDX North American Investment Grade index firmed about 1 basis point to close at a spread of 67 bps.

Bonds were mostly better in the secondary market.

AT&T Inc.’s global notes (Baa1/BBB+/A-) traded about 2 bps to 4 bps tighter on Tuesday.

Verizon Communications Inc.’s notes (Baa1/BBB+/A-) tightened about 3 bps to 5 bps in the secondary market during the session.

Rockwell Collins prices

Rockwell Collins sold $4.65 billion of fixed-rate senior notes (Baa2/BBB/BBB) in five tranches on Tuesday, according to a market source.

The company sold $300 million of 1.95% long two-year notes at a spread of 70 bps over Treasuries. Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.

Rockwell Collins priced $1.1 billion of 2.8% five-year notes at a Treasuries plus 85 bps spread. Credit Agricole Securities (USA) Inc., Citigroup Global Markets, J.P. Morgan Securities and Wells Fargo Securities were the bookrunners.

In the third tranche, the company sold $950 million of 3.2% seven-year notes at a spread of 100 bps over Treasuries. The bookrunners were Citigroup Global Markets, J.P. Morgan Securities, Mizuho Securities USA Inc. and Wells Fargo Securities.

Rockwell Collins brought $1.3 billion of 3.5% 10-year notes to the primary market at a spread of 110 bps over Treasuries. The bookrunners were Credit Agricole Securities, Citigroup Global Markets, J.P. Morgan Securities and Wells Fargo Securities.

The final $1 billion tranche of 4.35% 30-year notes priced with a spread of 135 bps over Treasuries. Citigroup Global Markets, J.P. Morgan Securities, Mizuho Securities and Wells Fargo Securities were the lead managers.

The notes all priced on the tight side of guidance.

Rockwell Collins is a communications and aviation electronics company based in Cedar Rapids, Iowa.

Applied Materials sells notes

Applied Materials priced $2.2 billion of senior notes (A3/A-/) in two tranches on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $1.2 billion of 3.3% 10-year notes at 99.645 to yield 3.342% and a spread of Treasuries plus 93 bps.

Applied Materials priced $1 billion of 4.35% 30-year notes at 99.817 to yield 4.361%. The notes priced with a spread of 133 bps over Treasuries.

Both tranches priced on the tight side of guidance.

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

Applied Materials is a Santa Clara, Calif., manufacturer of semiconductor equipment.

Ford raises $1.75 billion

Ford Motor Credit priced a $1.75 billion three-part offering of senior notes (Baa2/BBB/BBB) on Tuesday, according to an FWP filing with the SEC.

The company sold $500 million of 2.262% two-year notes at par to yield a spread of 98 bps over Treasuries.

Ford Motor Credit priced $850 million of 3.339% five-year notes at par to yield a spread of Treasuries plus 138 bps.

The company sold $400 million of five-year floating-rate notes at par to yield Libor plus 127 bps.

BNP Paribas Securities Corp., Citigroup Global Markets, Goldman Sachs & Co., HSBC Securities (USA) Inc., Lloyds Securities Inc., Morgan Stanley & Co. LLC and SG Americas Securities, LLC were the bookrunners.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based automaker Ford Motor Co.

Keysight Technologies prints

Keysight Technologies priced $700 million of 4.6% 10-year senior notes (Baa3/BBB-/BBB) on Tuesday at a spread of 220 bps over Treasuries, according to an FWP filed with the SEC.

The notes due April 6, 2027 were sold at 99.873 to yield 4.616%.

Goldman Sachs, BNP Paribas Securities, Barclays, Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Citigroup Global Markets and Wells Fargo Securities were the bookrunners.

The notes have a mandatory call at 101 if Keysight Technologies’ merger with Ixia does not close by Dec. 31.

The electronic measurement technology company is based in Santa Rosa, Calif.

Omega brings $700 million

Omega Healthcare Investors sold $700 million of senior notes (Baa3/BBB-/BBB-) in two tranches on Tuesday, according to a market source and an FWP filing with the SEC.

Omega Healthcare priced $550 million of 4.75% notes due Jan. 15, 2028 at 98.978 to yield 4.87% and a spread of Treasuries plus 245 bps.

The company sold $150 million in a reopening of its 4.5% notes due Jan. 15, 2025 at 99.54 to yield 4.57%, or Treasuries plus 215 bps.

Omega Healthcare first sold $250 million of the 4.5% notes on Sept. 4, 2014 at 99.131. The total outstanding now is $400 million.

Both tranches came on the tight side of talk.

J.P. Morgan Securities, BofA Merrill Lynch and Stifel, Nicolaus & Co. Inc. were the bookrunners on the long 10-year notes.

J.P. Morgan Securities, Credit Agricole Securities, BofA Merrill Lynch and Stifel, Nicolaus were the bookrunners on the reopened notes.

The notes are guaranteed by the company’s existing and future subsidiaries that guarantee debt under its existing senior notes and the facilities under its credit agreements.

Omega is a Hunt Valley, Md.-based real estate investment trust investing in and providing financing to the long-term-care industry.

Dollar General prices notes

Dollar General sold $600 million of 3.875% 10-year senior notes (Baa2/BBB/) on Tuesday on the tight side of talk at a spread of 147 bps over Treasuries, according to a market source and an FWP filing with the SEC.

The notes due April 15, 2027 priced at 99.926 to yield 3.884%.

Citigroup Global Markets, Goldman Sachs, BofA Merrill Lynch, U.S. Bancorp Investments Inc. and Wells Fargo Securities were the bookrunners.

Based in Goodlettsville, Tenn., Dollar General is a discount retailer.

EDC sells $500 million

Export Development Canada (Aaa/AAA) priced $500 million of 1.5% two-year dollar-denominated notes at a spread of 26.79 bps over Treasuries in a Rule 144A and Regulation S offering on Tuesday, according to a market source.

The notes are due April 4, 2019.

BofA Merrill Lynch and Citigroup Global Markets were the bookrunners.

Ottawa, Ont.-based Export Development Canada is a Canadian government-owned export credit agency.

Oklahoma Gas prints

Oklahoma Gas & Electric sold $300 million of 4.15% senior notes due April 1, 2047 on Tuesday at 99.932 to yield 4.154%, according to an FWP filing with the SEC.

The notes (A1/A-/A+) priced with a spread of 115 bps over Treasuries.

Bookrunners were Mizuho Securities, RBC Capital Markets LLC and Wells Fargo Securities.

The electric utility is based in Oklahoma City.

UPS sells 50-year floaters

United Parcel Service priced $142,115,000 of floating-rate senior notes due March 15, 2067 (A1/A+/) on Tuesday at par to yield Libor minus 30 bps, according to an FWP filing with the SEC.

UBS Securities LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities and Morgan Stanley were the bookrunners.

The notes are callable at premiums ranging from 105 to par beginning on March 15, 2047.

The notes are putable on semiannual dates between March 15, 2018 and March 15, 2028 at prices ranging from 98 to 99 and then every two years until March 15, 2046 at par.

The package delivery and supply chain management company is based in Atlanta.

AT&T firms

AT&T’s 4.25% notes due March 1, 2027 tightened about 3 bps to 164 bps bid on Tuesday, according to a market source.

The company priced $2 billion of 4.25% notes due March 1, 2027 on Jan. 31 at a spread of Treasuries plus 180 bps.

AT&T’s 5.45% notes due March 1, 2047 firmed about 2 bps to 222 bps bid in secondary trading.

The $2 billion tranche priced on Jan. 31 at a spread of Treasuries plus 240 bps.

AT&T is a Dallas-based telecommunications company.

Verizon tightens

Verizon’s 4.124% notes due March 16, 2027 tightened 5 bps on the day to 150 bps bid, a market source said.

The $3.25 billion tranche priced on March 13 at a Treasuries plus 160 bps spread.

Verizon’s 5.5% notes due March 16, 2047 firmed about 3 bps to 210 bps bid.

The company sold $1.5 billion of the notes on March 13 at a Treasuries plus 230 bps spread.

Verizon is a New York City-based telecommunications company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.