Oneok, Sherwin-Williams, CenterPoint, Duke Energy, Ventas, Westar price; credit spreads ease

By Cristal Cody

Tupelo, Miss., Aug. 12 – Investment-grade issuers brought more than $7 billion of bonds to the primary market in eight registered deals over Monday’s session.

Oneok Inc. sold $2 billion of guaranteed senior notes in three tranches.

Sherwin-Williams Co. priced a $1.35 billion two-tranche offering of senior notes.

CenterPoint Energy, Inc. placed $1.2 billion of senior notes in three parts.

Duke Energy Carolinas LLC sold $800 million of first and refunding mortgage bonds in two tranches.

Ventas Realty LP brought $650 million of long 10-year guaranteed senior notes.

Lincoln National Corp. priced $500 million of long 10-year senior notes.

Westar Energy, Inc. tapped the market with a $300 million offering of 30-year first mortgage bonds.

Also, Arizona Public Service Co. sold $300 million of 10-year senior notes.

Syndicate sources expect strong supply this week to total in the $25 billion to $30 billion or higher area.

High-grade issuers priced more than $36 billion of bonds last week, beating market forecasts of about $25 billion to $30 billion of volume.

In other market action, Owens Corning announced it closed on its $450 million debut green bond offering of 3.95% senior notes due Aug. 15, 2029 that priced on July 29. The notes (Ba1/BBB/BBB-) were sold at 99.787 to yield 3.976%, or a spread of 192 basis points over Treasuries.

Owens Corning notes that it is the first U.S. industrial company to issue a green bond.

“No company can make the world a better place by itself,” Frank O’Brien-Bernini, chief sustainability officer at Owens Corning, said in the release. “This bond was an invitation to investors to support Owens Corning’s contributions to a vitally important, global collaboration to build a sustainable world for the future.”

In conjunction with the bond, the company has committed to spend $445 million on eligible sustainability projects, according to the news release.

The Markit CDX North American Investment Grade 32 index softened about 3 bps from Friday to close at a spread of 62 bps on Monday.

Oneok prices $2 billion

Oneok priced $2 billion of guaranteed senior notes (Baa3/BBB/) in three tranches on Monday, according to a news release.

A $500 million tranche of five-year notes priced with a 2.75% coupon.

The company also sold $750 million of 3.4% 10-year notes and $750 million of 4.45% 30-year notes.

	J.P. Morgan Securities, LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs	& Co. LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mizuho Securities	USA	LLC, Morgan Stanley & Co. LLC, MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.
	The bonds are guaranteed by Oneok Partners LP and Oneok Partners Intermediate LP.
	Oneok is a midstream service provider and natural gas company based in Tulsa, Okla.
Sherwin-Williams prices
	Sherwin-Williams priced a $1.35 billion two-tranche offering of senior notes (Baa3/BBB/BBB) on Monday, according to an FWP filing with the Securities and Exchange Commission.
	The company sold $800 million of 2.95% 10-year notes at 99.667 to yield 2.989%. The notes priced with a spread of Treasuries plus 135 bps.
	A $550 million tranche of 3.8% 30-year notes were priced at 99.717 to yield 3.816%, or a 170 bps over Treasuries spread.
	BofA Securities, Citigroup Global Markets, J.P. Morgan Securities and Wells Fargo Securities were the bookrunners.
	Sherwin-Williams is a Cleveland-based developer, manufacturer and distributor of paints and related products.
CenterPoint Energy prints
	CenterPoint Energy priced $1.2 billion of senior notes (Baa2/BBB/BBB) in three tranches on Monday, according to an FWP filing with the SEC.
	A $500 million tranche of 2.5% five-year notes priced at 99.83 to yield 2.536%, or a Treasuries 105 bps spread.
	CenterPoint sold $400 million of 2.95% notes due March 1, 2030 at 99.603 to yield 2.994% and a spread of 135 bps over Treasuries.
	A $300 million tranche of 3.7% 30-year notes priced at 99.155 to yield 3.747%. The notes priced with a spread of 162.5 bps over Treasuries.
	Bookrunners were BofA Securities, Goldman Sachs, J.P. Morgan Securities, Morgan Stanley, Wells Fargo Securities, Barclays, Citigroup Global Markets, Credit Suisse Securities, Deutsche Bank Securities, MUFG and RBC Capital Markets, LLC.
	CenterPoint Energy is a Houston-based public utility holding company.
Duke Energy sells two tranches
	Duke Energy Carolinas priced $800 million of first and refunding mortgage bonds (Aa2/A/) in two tranches on Monday, according to an FWP filing with the SEC.
	The company sold $450 million of 2.45% bonds due Aug. 15, 2029 at 99.877 to yield 2.464%, or a spread of 82 bps over Treasuries.
	A $350 million tranche of 3.2% bonds due Aug. 15, 2049 priced at 99.732 to yield 3.214%. The bonds priced with a Treasuries plus 110 bps spread.
	Barclays, BNP Paribas Securities Corp., PNC Capital Markets LLC and SunTrust Robinson Humphrey, Inc. were the bookrunners.
	The Charlotte, N.C.-based company generates, transmits, distributes and sells electricity.
Ventas Realty brings $650 million
	Ventas Realty sold $650 million of 3% guaranteed senior notes due Jan. 15, 2030 (Baa1/BBB+/BBB+) on Monday at a spread of 140 bps over Treasuries, according to an FWP filing with the SEC.
	The notes priced at 99.506 to yield 3.056%.
	J.P. Morgan Securities, Credit Agricole Securities (USA) Inc., MUFG and Wells Fargo Securities were the bookrunners.
	Ventas, Inc. will fully and unconditionally guarantee the notes.
	The real estate investment trust for housing and health care properties is based in Chicago.
Lincoln National in primary
	Lincoln National priced $500 million of 3.05% senior notes due Jan. 15, 2030 on Monday at a spread of 142 bps over Treasuries, according to an FWP filing with the SEC.
	The notes (Baa1/A-/BBB+) priced at 99.896 to yield 3.062%.
	J.P. Morgan Securities, Wells Fargo Securities, BNP Paribas Securities, HSBC Securities (USA) Inc. and BofA Securities were the bookrunners.
	Lincoln National is a Radnor, Pa.-based holding company for insurance and retirement subsidiaries.
Westar Energy sells bonds
	Westar Energy priced $300 million of 3.25% 30-year first mortgage bonds on Monday at 99.126 to yield 3.296%, according to an FWP filing with the SEC.
	The bonds (A2/A/) priced with a Treasuries plus 117 bps spread.
	Barclays, TD Securities (USA) LLC and U.S. Bancorp Investments were the bookrunners.
	Westar is a Topeka, Kan.-based electric utility.
Arizona Public Service prints
	Arizona Public Service sold $300 million of 2.6% 10-year senior notes on Monday at a spread of 98 basis points over Treasuries, according to an FWP filing with the SEC.
	The notes (A2/A-/A) priced at 99.869 to yield 2.615%.
	BNP Paribas Securities, J.P. Morgan Securities, MUFG and U.S. Bancorp Investments were the bookrunners.
	Phoenix-based Arizona Public Service is an electric utility and subsidiary of Pinnacle West Capital Corp.

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