Banco Santander, Pacific Life, Hospitality Properties price notes; Boral starts roadshow

By Cristal Cody

Tupelo, Miss., Oct. 17 – Banco Santander, SA tapped the high-grade bond market on Tuesday with a $2.5 billion three-tranche offering of notes.

Also, Pacific Life Insurance Co. came with $750 million of 50-year fixed-to-floating-rate surplus notes.

In other corporate issuance, Hospitality Properties Trust priced $400 million of long 10-year senior notes.

Elsewhere on Tuesday, Boral Ltd. (Baa2/BBB/) started a roadshow for a dollar-denominated Rule 144A and Regulation S offering of notes.

Coming up on Wednesday, the Federation des caisses Desjardins du Quebec (Aa2/A+/AA-) plans to start a three-day roadshow for a dollar-denominated Rule 144A and Regulation S notes offering. Barclays is the bookrunner.

The Markit CDX North American Investment Grade 29 index ended slightly better on Tuesday at a spread of 54 basis points.

Santander prices $2.5 billion

Banco Santander sold $2.5 billion of senior non-preferred debt securities (Baa1/A-/A-) in three tranches on Tuesday, according to a market source.

The company priced $500 million of floating-rate notes due Feb. 23, 2023 at Libor plus 109 bps.

Banco Santander sold $1 billion of 3.125% notes due Feb. 23, 2023 at a spread of 120 bps over Treasuries.

The final $1 billion tranche of 3.8% notes due Feb. 23, 2028 priced with a Treasuries plus 155 bps spread.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Santander Investment Securities Inc. were the bookrunners.

Banco Santander held a three-day roadshow that ended on Friday for the offering.

The securities are non-callable.

Proceeds from the deal will be used for general corporate purposes.

The issuer intends to apply to list the notes on the New York Stock Exchange.

The banking services company is based in Madrid.

Pacific sells 50-year bonds

Pacific Life Insurance (A3/A/A) priced $750 million of 4.3% 50-year fixed-to-floating-rate surplus notes on Tuesday at a spread of 150 bps over Treasuries, tighter than initial price talk in the 170 bps area, according to a market source.

The notes convert to a floating rate of Libor plus 179.6 bps after an initial period.

The company held fixed-income investor calls on Monday for the Rule 144A and Regulation S offering.

Barclays, Citigroup Global Markets, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC were the lead managers.

Pacific Life Insurance is a Newport Beach, Calif.-based insurance company.

Hospitality brings notes

Hospitality Properties Trust sold $400 million of 3.95% senior notes due Jan. 15, 2028 (Baa2/BBB-/) on Tuesday at 97.911 to yield 4.202%, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced at a spread of 190 bps over Treasuries, on the tight side of guidance in the 195 bps area.

UBS Securities LLC, BBVA Securities Inc., Citigroup Global Markets, Mizuho Securities USA Inc. and RBC Capital Markets, LLC were the bookrunners.

Proceeds will be used for general business purposes, including acquiring and investing in additional properties and repaying borrowings under the company’s revolving credit facility or other debt.

The real estate investment trust is based in Newton, Mass.

Boral holds roadshow

Boral (Baa2/BBB/) is holding a roadshow in the United States and Australia for a dollar-denominated Rule 144A and Regulation S offering of notes, according to a market source.

The roadshow started on Tuesday.

Citigroup Global Markets and J.P. Morgan Securities are the arrangers.

Boral is a building and construction materials company based in Sydney, Australia.

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