Orange prices $1.25 billion; Lennox, Goldman, National Rural print; AT&T, Time Warner firm

By Cristal Cody

Eureka Springs, Ark., Oct. 25 – High-grade bond action on Tuesday included deals from Orange SA, Goldman Sachs Group Inc., Lennox International Inc. and National Rural Utilities Cooperative Finance Corp.

French telecommunications company Orange priced $1.25 billion of 1.625% three-year notes with a negative 0.15% interest rate after hedging, according to a company release.

“The group takes advantage of favorable market conditions to optimize its average cost of debt and intends to pursue its opportunistic refinancing policy,” Orange said in the release.

Goldman Sachs Group priced $1 billion of floating-rate notes in a TLAC deal on Tuesday.

In the other pricing activity, Lennox International sold $350 million of seven-year senior notes.

National Rural Utilities Cooperative Finance priced $300 million of senior medium-term three-year notes.

Bonds from AT&T Inc. and Time Warner Inc. improved in the secondary market on Tuesday after widening about 10 basis points to 20 bps during the previous session in response to AT&T’s plans to acquire Time Warner in an $85.4 billion cash-and-stock deal.

Verizon Communications Inc.’s 2.625% notes due 2026 softened about 1 bp during the session.

Honeywell International Inc.’s 2.5% notes due 2026 priced on Monday traded 2 bps softer earlier in the day.

The Markit CDX North American Investment Grade index eased about 1 bp to close at a spread of 75 bps.

Orange sells $1.25 billion

Orange priced $1.25 billion of 1.625% three-year notes on Tuesday at a spread of 67 bps plus Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes (Baa1/BBB+/) priced at 99.854 to yield 1.675%.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and MUFG were the bookrunners.

Proceeds will be used for general corporate purposes.

The telecommunications company is based in Paris.

Goldman sells $1 billion

Goldman Sachs Group priced $1 billion of floating-rate notes due Oct. 28, 2026 at par to yield Libor plus 175 bps in a TLAC deal on Tuesday, according to a market source.

The notes (A3/A/) priced in line with guidance.

Goldman Sachs & Co. was the bookrunner.

Goldman is a New York-based banking, securities and investment management company.

Lennox prices $350 million

Lennox International priced $350 million of 3% seven-year senior notes at 99.943 to yield 3.009% on Tuesday, according to an FWP filing with the SEC.

The notes (Baa3/BBB/) priced with a spread of 145 bps over Treasuries.

JPMorgan and Wells Fargo Securities LLC were the bookrunners for the offering.

The notes are guaranteed by Advanced Distributor Products LLC, Allied Air Enterprises LLC, Heatcraft Inc., Heatcraft Refrigeration Products LLC, Lennox Global Ltd., Lennox Industries Inc., Lennox National Account Services LLC, LGL Australia (US) Inc. and LGL Europe Holding Co.

The Richardson, Texas, climate-control products company plans to use the proceeds for working capital and other general corporate purposes, including repaying debt and stock repurchases.

National Rural sells notes

National Rural Utilities Cooperative Finance sold $300 million of 1.5% series D senior medium-term three-year notes at par on Tuesday, according to an FWP filing with the SEC.

The notes (A2/A/A) priced with a spread of 50 bps over Treasuries.

JPMorgan, Mizuho Securities USA Inc., PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc. and Regions Securities LLC were the managers.

National Rural Utilities is a Dulles, Va.-based finance cooperative that provides financing to member organizations and affiliates.

AT&T improves

AT&T’s 4.125% notes due 2026 improved modestly in secondary trading to head out on Tuesday at 157 bps bid, compared to where the notes traded late Monday at 161 bps bid, according to a market source.

The notes traded on Friday at 146 bps bid.

The company priced a $900 million reopening of the bonds on May 3 at Treasuries plus 150 bps.

The notes originally were sold on Jan. 29 in a $1.5 billion offering at 195 bps over Treasuries.

AT&T is a Dallas-based telecommunications company.

Time Warner tightens

Time Warner’s 2.95% notes due 2026 tightened to 125 bps bid on Tuesday, a market source said.

The 10-year notes widened to 138 bps bid on Monday from 112 bps bid on Friday.

The company sold $800 million of the notes on May 5 at a spread of 135 bps over Treasuries.

Time Warner is a New York-based media and entertainment company.

Verizon eases

Verizon’s 2.625% notes due 2026 traded about 1 bp weaker on Tuesday at 142 bps bid, according to a market source.

Verizon sold $2.25 billion of the notes (Baa1//A-) on July 27 at a spread of Treasuries plus 115 bps.

The telecommunications company is based in New York City.

Honeywell softens

Honeywell International’s 2.5% notes due 2026 were quoted softer early Tuesday at 80 bps offered, according to a market source.

Honeywell sold $1.5 billion of the 10-year notes (A2/A/A) on Monday at a spread of Treasuries plus 78 bps.

Honeywell is a technology and manufacturing company based in Morristown, N.J.

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