High-grade supply strong; Intel, Dominion Energy, LabCorp, Honda, Western Union, Ameren price

By Cristal Cody

Tupelo, Miss., Nov. 18 – Investment-grade corporate issuers sold more than $8 billion of bonds over Monday’s session.

Intel Corp. priced $2.75 billion of senior notes in two tranches.

Dominion Energy Gas Holdings, LLC priced $1.5 billion of senior notes in three tranches.

Laboratory Corp. of America Holdings brought $1.05 billion of senior notes in two parts to the primary market.

Packaging Corp. of America sold $900 million of senior notes in two tranches.

American Honda Finance Corp. came by with $600 million of 2.-5-year medium-term notes.

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

Ameren Illinois Co. priced $300 million of first mortgage bonds due March 15, 2050.

Arizona Public Service Co. tapped the primary market with a $300 million offering of 30-year senior notes.

In addition, Mid-America Apartments, LP sold $300 million of long 10-year senior notes.

Supply is expected to remain strong this week as issuers move to tap the market ahead of the Thanksgiving Day holiday, sources report.

About $25 billion of high-grade bond issuance is forecast by syndicate sources this week.

In other activity on Monday, S&P Global Inc. held fixed income investor calls for a possible bond deal, a source said. BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are the arrangers.

Volume was heavy last week with about $48 billion of investment-grade corporate issuance that included a $30 billion 10-tranche offering of notes from AbbVie Inc.

The Markit CDX North American Investment Grade 33 index ended mostly unchanged from Friday at a spread of 51.3 basis points.

Intel prices $2.75 billion

Intel priced $2.75 billion of senior notes (A1/A+/A+) in two tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $1.25 billion of 2.45% 10-year notes at a spread of 65 bps over Treasuries, 10 bps better than initial talk. The notes were sold at 99.868 to yield 2.465%.

A $1.5 billion tranche of 3.25% 30-year notes priced at a Treasuries plus 95 bps spread, or 99.943, to yield 3.253%. The issue was initially talked to print in the 105 bps spread area.

BofA Securities, Inc. and J.P. Morgan Securities LLC were the bookrunners.

Intel is a semiconductor chip maker based in Santa Clara, Calif.

Dominion Energy sells three tranches

Dominion Energy Gas Holdings priced $1.5 billion of senior notes (Baa1/BBB+/BBB+) in three parts on Monday, according to a market source.

A $600 million tranche of 2.5% five-year notes priced on the tight side of guidance at a spread of 88 bps over Treasuries.

The company sold $600 million of 3% 10-year notes at a Treasuries plus 123 bps spread. The notes priced on the firm side of guidance in the Treasuries plus 125 bps area.

The final $300 million tranche of 3.9% 30-year notes priced at a spread of 160 bps over Treasuries. The prices came better than guidance in the 165 bps spread area.

Bookrunners were J.P. Morgan, Mizuho Securities USA Inc., MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., BB&T Capital Markets, CIBC Capital Markets, Credit Agricole CIB, ING Financial Markets LLC, KeyBanc Capital Markets LLC, PNC Capital Markets LLC, RBC Capital Markets LLC, SG Americas Securities LLC, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC.

Dominion Energy Gas Holdings is a Richmond, Va.-based natural gas company and subsidiary of Dominion Energy Inc.

LabCorp sells $1.05 billion

Laboratory Corp. of America Holdings sold $1.05 billion of senior notes (Baa2/BBB/) in two tranches on Monday, according to a market source and an FWP filing.

The deal included $400 million of 2.3% five-year notes that priced at a spread of Treasuries plus 72 bps, or 99.769, to yield 2.349%.

A $650 million tranche of 2.95% 10-year notes priced at 99.741 to yield 2.98% and a spread of 117 bps over Treasuries.

The notes priced on the firm side of guidance.

BofA Securities, U.S. Bancorp, Wells Fargo, KeyBanc, MUFG and TD Securities (USA) LLC were the bookrunners.

Burlington, N.C.-based LabCorp develops diagnostic technologies through genomic testing

Packaging Corp. brings two tranches

Packaging Corp. priced $900 million of senior notes (Baa2/BBB/) in two tranches on Monday, according to a market source and an FWP filing.

Packaging Corp. sold $500 million of 3% 10-year notes at 99.869 to yield 3.015%, or a spread of Treasuries plus 120 bps.

A $400 million tranche of 4.05% 30-year notes priced at 99.12 to yield 4.101% and a Treasuries plus 180 bps spread.

Both tranches priced on the tight side of guidance.

Deutsche Bank Securities Inc. and Wells Fargo were the bookrunners.

The Lake Forest, Ill.-based company manufactures containerboard and corrugated packaging products.

American Honda Finance prints

American Honda Finance (A2/A/) priced $600 million of 1.95% medium-term notes due May 20, 2022 (A2/A/) on Monday at 99.966 to yield 1.964%, or a spread of Treasuries plus 37 basis points, according to a market source and an FWP filing.

Initial price talk was in the Treasuries plus 50 bps area.

Barclays, BNP Paribas Securities Corp. and BofA Securities were the bookrunners.

American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.

Western Union prices $500 million

Western Union (Baa2/BBB/BBB+) priced $500 million of 2.85% senior notes due Jan. 10, 2025 on Monday at a spread of 125 bps over Treasuries, according to a market source.

Initial talk was in the Treasuries plus 150 bps area.

Citigroup, J.P. Morgan and Wells Fargo were the bookrunners.

Western Union marketed the deal with fixed income investor calls and meetings that ended Friday.

Western Union is an Englewood, Colo.-based money transfer network.

Arizona Public Service sells notes

Arizona Public Service placed a $300 million offering of 3.5% 30-year senior notes on Monday at a spread of 120 bps over Treasuries, according to an FWP filing.

The notes (A2/A-/A) priced at 99.944 to yield 3.503%.

Citigroup, PNC Capital Markets, RBC and Scotia were the bookrunners.

Phoenix-based Arizona Public Service is an electric utility and subsidiary of Pinnacle West Capital Corp.

Ameren Illinois brings mortgage bonds

Ameren Illinois sold $300 million of 3.25% first mortgage bonds due March 15, 2050 (A1/A/) at a spread of Treasuries plus 98 bps on Monday, according to an FWP filing.

The bonds priced at 99.506 to yield 3.276%.

BNY Mellon Capital Markets LLC, Goldman Sachs, Mizuho, Fifth Third Securities Inc. and PNC Capital Markets were the lead managers.

Ameren Illinois is a subsidiary of St. Louis-based electric and natural gas company Ameren Corp.

Mid-America Apartments prints

Mid-America Apartments sold $300 million of 2.75% senior notes due March 15, 2030 on Monday at a Treasuries plus 97 bps spread, according to a market source and an FWP filing.

Initial price talk was in the Treasuries plus 115 bps area.

The notes (Baa1/BBB+/BBB+) priced at 99.762 to yield 2.777%.

Wells Fargo, Citigroup, Jefferies LLC, J.P. Morgan and SunTrust Robinson were the bookrunners.

Mid-America Apartments is a Memphis-based real estate investment trust.

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