Marsh & McLennan, Energy Transfer, ORIX, EIB, BNG Bank price issues; Danske Bank eyes market

By Cristal Cody

Tupelo, Miss., Jan. 8 – Marsh & McLennan Cos., Inc. led deal action in the high-grade primary market on Tuesday with a $5 billion six-tranche offering of senior notes.

The notes priced on top of guidance and better than initial talk.

Energy Transfer Operating LP also came with $4 billion of senior notes in three tranches, dropping a two-year fixed-rate issue from the final offering.

ORIX Corp. sold $500 million of five-year senior notes.

The European Investment Bank placed $4 billion of five-year global notes during the session.

In addition, BNG Bank NV priced $1.5 billion of two-year notes.

About $25 billion to $30 billion of deal volume is forecast by market sources for the week.

Danske Bank A/S started a roadshow and fixed income investor calls on Monday for a benchmark-sized dollar-denominated offering of notes.

Coming up on Wednesday, Fannie Mae announced it plans to price new three-year Benchmark Notes.

The Markit CDX North American Investment Grade 31 index firmed about 2 basis points on Tuesday to a spread of 80 bps.

High-grade supply on Monday included $3.7 billion of corporate issuance with new issues improved by about 1 bp to 7 bps in the secondary market, a source said.

Kroger Co.’s new $1.2 billion two-part offering of senior notes (Baa1/BBB/) firmed about 1 bp to 2 bps.

Marsh & McLennan notes

Marsh & McLennan priced $5 billion of senior notes (Baa1/A-/) in six tranches on top of guidance and better than initial talk on Tuesday, according to a market source.

The company sold $700 million of 3.5% notes due Dec. 29, 2020 at a spread of Treasuries plus 95 bps.

A $300 million tranche of three-year floating-rate notes priced at Libor plus 120 bps.

A $1 billion tranche of 3.875% five-year notes came at a spread of 130 bps over Treasuries.

Marsh & McLennan priced $1.25 billion of 4.375% 10-year notes at a 165 bps over Treasuries spread.

The company sold $500 million of 4.75% 20-year notes at a spread of 175 bps over Treasuries.

In the final tranche, $1.25 billion of 4.9% 30-year notes priced at a Treasuries plus 190 bps spread.

Goldman Sachs & Co. LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, MUFG, RBC Capital Markets LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.

The professional services firm is based in New York.

Energy Transfer prices

Energy Transfer Operating priced $4 billion of senior notes (Baa3/BBB-/BBB-) in three tranches on the tight side of guidance and better than initial talk on Tuesday, according to a market source.

The company sold $750 million of 4.5% notes due April 15, 2024 at a spread of 200 bps over Treasuries.

A $1.5 billion tranche of 5.25% notes due April 15, 2029 priced with a Treasuries plus 255 bps spread.

Energy Transfer sold $1.75 billion of 6.25% 30-year notes at a 325 bps over Treasuries spread.

The company dropped an initial planned offering of notes due April 15, 2021 from the final deal.

BofA Merrill Lynch, Deutsche Bank, Goldman Sachs, RBC Capital Markets and SunTrust Robinson Humphrey Inc. were the bookrunners.

Energy Transfer is a natural gas midstream and intrastate transportation and storage company based in Dallas.

ORIX raises $500 million

ORIX sold $500 million of 4.05% five-year senior notes (A3/A-/A-) on Tuesday at a spread of 150 bps over Treasuries, according to a market source.

The notes priced tighter than initial talk in the Treasuries plus 165 bps area.

Goldman Sachs, JPMorgan, Citigroup and SMBC Nikko Securities America, Inc. were the bookrunners.

The financial services company is based in Tokyo.

BNG Bank prints

BNG Bank (Aaa/AAA/AA+) priced $1.5 billion of 2.625% two-year notes on Tuesday at mid-swaps plus 5 bps, or a spread of Treasuries plus 18.1 bps, according to an informed source.

The notes due Jan. 15, 2021 were initially talked to price in the mid-swaps plus 5 bps area.

BMO Capital Markets Corp., BNP Paribas Securities Corp., Citigroup and JPMorgan were the bookrunners of the Rule 144A and Regulation S offering.

BNG Bank, formerly known as Bank Nederlandse Gemeenten NV, is a banking services company based in the Hague, the Netherlands.

EIB brings $4 billion

The European Investment Bank (Aaa/AAA/AAA) priced $4 billion of 2.625% five-year global notes on Tuesday mid-swaps plus 12 bps, or a spread of Treasuries plus 18.65 bps, according to an informed source.

The notes due March 15, 2024 were initially talked to price in the mid-swaps plus 14 bps area with guidance later tightened to the mid-swaps plus 13 bps area.

Barclays, Goldman Sachs and HSBC Securities were the lead managers.

The lender for the European Union is based in Kirchberg, Luxembourg.

Danske Bank starts roadshow

Danske Bank is holding a roadshow and fixed income investor calls that started on Monday for a dollar-denominated Rule 144A and Regulation S benchmark-sized offering of notes (Baa2/A/A), a source said.

The roadshow is being conducted in the United States and Europe.

BofA Merrill Lynch, Barclays, Danske Markets Inc., Goldman Sachs, JPMorgan and UBS Securities LLC are the lead managers.

Danske Bank is a Copenhagen, Denmark-based bank.

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