Supply soars; Ford, ICE, BNY Mellon, Duke Energy, Ventas, Paccar price

By Cristal Cody

Tupelo, Miss., Aug. 6 – Investment-grade companies priced more than $10 billion of bonds over Monday’s session.

Ford Motor Credit Co. LLC sold $2.25 billion of senior notes in three tranches.

Intercontinental Exchange Inc. placed $2.25 billion of senior notes in three parts.

American Water Capital Corp. priced a $1.3 billion two-part offering of senior notes.

Bank of New York Mellon Corp. brought $1.15 billion of senior medium-term notes in two tranches to the primary market.

Duke Energy Progress Inc. sold $800 million of first mortgage bonds in two tranches.

Ventas Realty LP sold $750 million of senior notes due Jan. 15, 2029.

NextEra Energy Capital Holdings Inc. priced $699.9 million remarketing deal.

Paccar Financial Corp. sold $650 million of fixed-rate medium-term notes in two tranches.

Also, Indiana Michigan Power Co. tapped the primary market with a $450 million sale of 30-year senior notes.

Volume already totals half of what market sources predicted for the entire week.

About $20 billion to $25 billion of supply is forecasted.

In other activity on Monday, Williamsville, N.Y. energy company National Fuel Gas Co. (Baa3/BBB/BBB) held fixed-income investor calls, according to a market source.

BofA Merrill Lynch, HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are the arrangers.

The Markit CDX North American Investment Grade 30 index closed mostly flat at a spread of 59 basis points.

Ford prices $2.25 billion

Ford Motor Credit (Baa2/BBB/BBB) priced a $2.25 billion three-part offering of senior notes on Monday, according to an FWP filing with the Securities and Exchange Commission.

Ford Motor Credit sold $500 million of floating-rate notes Oct. 12, 2021 at par to yield Libor plus 88 bps.

The company priced $1.15 billion of 3.813% long three-year fixed-rate notes at par to yield a spread of 108 bps over Treasuries.

It also priced $600 million of 4.687% notes due June 9, 2025 at par to yield a Treasuries plus 180 bps spread.

Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., HSBC Securities, Banco Bradesco BBI SA, BNP Paribas Securities Corp. and Citigroup Global Markets Inc. were the bookrunners.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based automaker Ford Motor Co.

Intercontinental Exchange prices

Intercontinental Exchange sold $2.25 billion of senior notes (A2/A/) in three tranches on Monday, according to a market source.

The company priced $400 million of 3.45% five-year notes at a spread of Treasuries plus 65 basis points. The notes were talked to price in the Treasuries plus 70 bps area, plus or minus 5 bps.

The $600 million tranche of 3.75% 10-year notes priced with a 90 bps spread over Treasuries, on the tight side of guidance of the Treasuries plus 95 bps area, plus or minus 5 bps.

Intercontinental Exchange sold a $1.25 billion tranche of 4.25% 30-year bonds with a spread of Treasuries plus 120 bps. Price guidance on the notes was in the Treasuries plus 125 bps area, plus or minus 5 bps.

BofA Merrill Lynch, Wells Fargo Securities and MUFG were the bookrunners.

Atlanta-based Intercontinental Exchange is a network of regulated exchanges and clearing houses for financial and commodity markets.

American Water sells $1.3 billion

American Water Capital sold $1,325,000,000 of senior notes (A3/A) in two tranches on Monday, according to a market source and an FWP filing with the SEC.

The company priced $625 million of 3.75% 10-year notes at 99.981 to yield 3.752% and a spread of 82 bps over Treasuries.

American Water Capital sold $700 million of 4.2% 30-year notes at 99.946 to yield 4.203%, or a spread of Treasuries plus 112 bps.

Both tranches priced on the tight side of guidance.

Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, TD Securities (USA) LLC, BofA Merrill Lynch and PNC Capital Markets LLC were the bookrunners.

The investor-owned water and wastewater utility is based in Voorhees, N.J.

Bank of New York Mellon prints

Bank of New York Mellon (A1/A/AA-) priced $1.15 billion of senior medium-term notes in two tranches on the firm side of guidance on Monday, according to a market source.

The bank sold $750 million of 3.45% five-year notes at a spread of Treasuries plus 65 bps.

Bank of New York Mellon priced a $400 million add-on to its 3.85% notes due April 28, 2028 at a 75 bps spread over Treasuries.

The bank first sold $500 million of the notes on April 23 at 99.778 to yield 3.877% with a Treasuries plus 90 bps spread. The total outstanding now is $900 million.

Barclays, HSBC Securities (USA) Inc., BofA Merrill Lynch, Wells Fargo Securities LLC and BNY Mellon Capital Markets LLC were the bookrunners.

Bank of New York Mellon is a financial products and services company based in New York.

Duke Energy prices

Duke Energy Progress priced $800 million of first mortgage bonds (Aa3/A/) in two tranches on Monday, according to an FWP filing with the SEC.

The company priced $300 million of 3.375% five-year bonds at 99.993 to yield 3.376%, or a spread of Treasuries plus 57 bps.

Duke Energy Progress sold $500 million of 3.7% 10-year bonds at 99.981 to yield 3.702%. The issue priced with a Treasuries plus 77 bps spread.

J.P. Morgan Securities, Mizuho Securities, Scotia Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. were the bookrunners.

Raleigh, N.C.-based Duke Energy Progress generates and distributes electricity in North Carolina and South Carolina.

NextEra Energy remarkets

NextEra Energy Capital Holdings priced $699,928,000 of 3.342% debentures due Sept. 1, 2020 (Baa1/BBB+/A-) in a remarketing on Monday at 100.285 to yield 3.199%, or a spread of 55 bps over Treasuries, according to an FWP filing with the SEC.

Barclays, Mizuho Securities and Wells Fargo Securities, LLC were the remarketing agents.

The issue previously had $700 million of notes outstanding, which originally were issued as part of NextEra Energy, Inc.’s corporate units on Sept. 16, 2015 in conjunction with a purchase contract agreement on Sept. 1, 2015.

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

Indiana Michigan Power prints

Indiana Michigan Power sold $450 million of 4.25% 30-year senior notes (A3/A-/) at 99.428 to yield 4.284% on Monday, according to a market source and an FWP filing with the SEC.

The notes priced on the tight side of guidance with a spread of 120 bps over Treasuries.

BNY Mellon Capital Markets LLC, Credit Agricole Securities, Credit Suisse Securities and PNC Capital Markets LLC were the bookrunners.

The subsidiary of American Electric Power is based in Fort Wayne, Ind.

Ventas brings notes due 2029

Ventas Realty sold $750 million of 4.4% senior notes due Jan. 15, 2029 (Baa1/BBB+/BBB+) on Monday at a spread of Treasuries plus 147 bps, on the tight side of talk in the Treasuries plus 150 bps area, plus or minus 3 bps, according to a market source and an FWP filing with the SEC.

The company placed the notes at 99.954 to yield 4.406%.

Wells Fargo Securities, Mizuho Securities, Morgan Stanley & Co. LLC and TD Securities were the bookrunners.

Ventas, Inc. guarantees the notes.

The real estate investment trust for housing and health care properties is based in Chicago.

Paccar Financial prices

Paccar Financial sold $650 million of fixed-rate medium-term notes in two tranches on Monday on the tight side of guidance and better than initial talk, according to a market source and FWP filings with the SEC.

The $350 million tranche of 3.15% three-year notes priced at 99.969 to yield 3.161% and a Treasuries plus 43 bps spread.

Paccar Financial priced $300 million 3.4% five-year notes at 99.959 to yield 3.409%, or a spread of 60 bps over Treasuries.

Citigroup Global Markets, Lloyds Securities Inc., RBC Capital Markets, U.S. Bancorp Investments Inc., BNP Paribas Securities and Wells Fargo Securities were the bookrunners.

Paccar Financial is a financing arm of Bellevue, Wash.-based Paccar Inc.

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