PSE&G, NextEra print notes; Amcor, European Bank in pipeline; Texas Instruments stable

By Cristal Cody

Tupelo, Miss., May 2 – Investment-grade deal volume on Wednesday included a $700 million two-tranche offering from Public Service Electric & Gas Co. and a $400 million sale of three-year floating-rate debentures from NextEra Energy Capital Holdings Inc.

Deal action has thinned over the past two sessions after more than $8 billion of bonds priced on Monday, but some corporate and agency supply is in the works.

Amcor Ltd. intends to price 10-year senior notes following a two-day round of fixed income investor calls.

Also, the European Bank for Reconstruction and Development is marketing $300 million of four-year global floating-rate notes to price on Thursday.

In addition, issuers including TransCanada Pipelines Ltd. and Oshkosh Corp. held fixed-income investor calls on Tuesday.

Market sources had expected $25 billion to $30 billion of volume for the week.

Holiday market closures in Europe on Tuesday as well as the Federal Reserve’s two-day monetary policy meeting that ended Wednesday may have impacted supply, sources said.

The Federal Reserve left rates unchanged.

The Markit CDX North American Investment Grade 30 index closed less than 1 basis point tighter at a spread of 61 bps.

In the secondary market, Lloyds Banking Group plc’s 4.45% notes due May 8, 2025 priced Tuesday were quoted slightly better.

Texas Instruments Inc.’s 4.15% notes due May 25, 2048 brought to the primary market on Monday traded wrapped around issuance.

PSE&G prices $700 million

Public Service Electric & Gas priced a $700 million two-part offering of secured medium-term notes (A2/BBB+/A+), according to a market source and FWP filings with the Securities and Exchange Commission on Wednesday.

The company sold $375 million of 3.70% notes due May 1, 2028 at 99.62 to yield a spread of 77 bps over Treasuries.

PSE&G priced $325 million of 4.05% notes due May 1, 2048 at 99.381 and a spread of Treasuries plus 95 bps.

Both tranches priced on the tight side of guidance.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, BNY Mellon Capital Markets LLC, CIBC World Markets Corp. and TD Securities (USA) LLC were the lead managers.

PSE&G is a Newark, N.J.-based utility.

NextEra Energy sells floaters

NextEra Energy Capital Holdings sold $400 million of three-year floating-rate debentures (Baa1/BBB+/) on Wednesday at par to yield Libor plus 48 bps, according to an FWP filing with the SEC.

Wells Fargo Securities, LLC was the bookrunner.

The debentures are unconditionally guaranteed by NextEra Energy Capital Holdings’ parent company, NextEra Energy, Inc.

NextEra Energy is an energy company based in Juno Beach, Fla.

Amcor in deal pipeline

Looking ahead, Amcor (Baa2/BBB/BBB+) intends to price new 10-year senior notes in a Rule 144A and Regulation S offering following fixed income investor calls on Thursday and Friday, according to a market source.

Citigroup Global Markets and J.P. Morgan Securities LLC are the bookrunners.

The multinational packaging products company is based in Melbourne, Australia.

EBRD offers notes

Coming up on Thursday, the European Bank for Reconstruction and Development (Aaa/AAA/AAA) plans to price $300 million of four-year global floating-rate notes, a source said.

The notes were initially talked to price in the 1 bp area.

BofA Merrill Lynch, BMO Capital Markets Corp. and SG Americas Securities LLC are the bookrunners.

The financial institution is based in London.

Lloyds improves

In new issue secondary trading, Lloyds Banking Group’s 4.45% senior notes due May 8, 2025 (A3/BBB+/A+) traded on Wednesday at 100.30, according to a market source.

The notes priced on Tuesday in a $1.5 billion offering at 99.94 to yield 4.46%, or a spread of 153 bps over Treasuries.

The bank and financial services group is based in London.

Texas Instruments steady

Texas Instruments’ 4.15% notes due May 25, 2048 traded wrapped around issuance on Wednesday at 107 bps bid, a market source said.

The company sold $1.3 billion of the 30-year notes (A1/A+/) on Monday at 99.556 to yield 4.176%, or a spread of 107 bps over Treasuries.

Texas Instruments is a Dallas-based semiconductor designer and manufacturer.

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