Alcon, Caterpillar, Danske, Hillenbrand, Entergy price; Council of Europe, Rentenbank on tap

By Cristal Cody

Tupelo, Miss., Sept. 16 – Investment-grade issuers opened the week with more than $6 billion of bonds priced on Monday.

Alcon Finance Corp. was in the primary market with $2 billion of senior notes in three tranches.

Caterpillar Inc. sold $1.5 billion of senior notes in two tranches.

Danske Bank A/S raised $1.75 billion in a two-part offering of fixed-to-floating rate subordinated notes.

Hillenbrand, Inc. priced $375 million of seven-year senior notes.

Entergy Texas Inc. brought $300 million of 30-year first mortgage bonds.

In other action on Monday, Omega Healthcare Investors, Inc. held fixed-income investor calls for a possible bond offering.

Coming up on Tuesday, the Council of Europe Development Bank is expected to sell $1 billion of three-year senior global notes.

Initial price talk is in the mid-swaps plus 12 basis points area.

Landwirtschaftliche Rentenbank also is in the deal pipeline with a dollar-denominated offering of two-year senior notes. Initial price talk is in the mid-swaps plus 9 bps area.

Investment-grade issuance is expected to be concentrated in the first two sessions of the week with a Federal Reserve monetary policy decision due on Wednesday.

About $25 billion of deal volume is expected by market sources this week following record corporate bond volume in the first half of September.

The Markit CDX North American Investment Grade 32 index closed the day nearly 1 bp softer at a spread of 51 bps.

Alcon prices $2 billion

Alcon Finance priced $2 billion of senior notes (Baa2/BBB/) in three tranches on Monday, according to a market source.

The $500 million tranche of 2.75% seven-year notes priced at a spread of 105 bps over Treasuries.

A $1 billion offering of 3% 10-year notes priced with a Treasuries plus 120 bps spread.

The company sold $500 million of 3.8% 30-year notes at a 150 bps over Treasuries spread.

The notes priced on the tight side of guidance.

BofA Securities, Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and UBS Securities LLC were the bookrunners.

Alcon Finance is a Fort Worth, Tex.-based financing arm of eye care company Alcon Inc.

Caterpillar sells $1.5 billion

Caterpillar priced $1.5 billion of senior notes (A3/A/A) in two tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The $500 million tranche of 2.6% 10-year notes priced at 99.851 to yield 2.617%, or a spread of 77 bps over Treasuries.

Caterpillar sold $1 billion of 3.25% 30-year notes at a Treasuries plus 98 bps spread. The notes priced at 99.09 to yield 3.298%.

Both tranches priced on the tight side of guidance.

Barclays, Citigroup and SG Americas Securities, LLC were the bookrunners.

Deerfield, Ill.-based Caterpillar manufactures construction and mining equipment, diesel and natural gas engines and other industry equipment.

Danske brings $1.75 billion

Danske Bank priced $1.75 billion of fixed-to-floating rate subordinated notes (Baa2/BBB+/) in two tranches tighter than initial talk on Monday, according to a market source.

The bank sold $1 billion of 3.001% three-year notes at a spread of Treasuries plus 125 bps.

The notes will reset to a floating rate of Libor plus 124.9 bps after the initial fixed-rate period.

A $750 million tranche of 3.244% notes due Dec. 20, 2025 priced at a spread of 155 bps over Treasuries.

The 2025 notes will reset to a floating rate of Libor plus 159.1 bps after the initial fixed-rate period.

BofA Securities, Citigroup, Danske Markets Inc., Morgan Stanley and TD Securities (USA) LLC were the bookrunners.

Danske Bank is a Copenhagen-based bank.

Hillenbrand prices notes

Hillenbrand priced $375 million of 4.5% seven-year senior notes (Baa3/BBB-/BBB-) at a spread of 275 bps over Treasuries on Monday, according to a market source.

Initial talk was in the 272.5 bps spread area.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the active bookrunners.

Batesville, Ind.-based Hillenbrand owns industrial companies that include the Batesville Casket Co.

Entergy Texas sells bonds

Entergy Texas priced $300 million of 3.55% 30-year first mortgage bonds (Baa1/A/) on Monday at 99.177 to yield 3.595%, or a spread of Treasuries plus 128 bps, according to a market source and an FWP filing.

Initial price talk was in the Treasuries plus 150 bps area.

BNP, Mizuho Securities USA LLC, MUFG, Regions Securities LLC and Wells Fargo were the bookrunners.

Entergy Texas is a Beaumont, Tex.-based energy provider.

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