NXP, Santander, MetLife, Southwestern Public Service, EIB, IADB price; deal pipeline active

By Cristal Cody

Tupelo, Miss., June 11 – Deal volume remained steady with more than $4 billion of high-grade corporate notes priced on Tuesday following heavy volume in the previous session.

NXP Semiconductors N.V. tapped the primary market with a $1.75 billion two-tranche offering of senior notes.

Santander UK plc sold $1 billion of five-year senior notes.

MetLife Global Funding I priced $1 billion of notes in two parts.

Southwestern Public Service Co. came with $300 million of 30-year green first mortgage bonds.

Northwest Natural Gas Co. sold $140 million of secured and unsecured medium-term notes.

Also on Tuesday, the Canadian high-grade corporate primary market saw two new issues.

Keyera Corp. (/BBB/DBRS: BBB) sold C$600 million of 6.875% 60-year fixed-to-floating-rate subordinated notes.

Fairfax Financial Holdings Ltd. priced C$500 million of 4.23% 10-year senior notes (Baa3/BBB-/DBRS: BBB) at a spread of 270.1 basis points versus the Government of Canada benchmark.

The sovereign, supranational and agency primary market also was active on Tuesday.

Inter-American Development Bank sold $2.1 billion of 10-year global notes in a new benchmark deal.

The European Investment Bank priced $1 billion of three-year floating-rate notes.

Meanwhile, PartnerRe Ltd. held fixed income investor calls on Tuesday for a dollar-denominated offering of senior notes.

Also, AXIS Specialty Finance plc held fixed income investor calls for a $300 million offering of 10-year senior notes (Baa1/A-).

Supply topped $17 billion on Monday, led by Fiserv, Inc.’s $9 billion four-part offering of senior notes.

Week to date, high-grade corporate deal volume totals more than $21 billion.

About $20 billion to $25 billion of issuance was anticipated by syndicate sources for the week.

In the secondary market, Fiserv’s new notes improved about 5 bps across the four tranches, a source said.

The Markit CDX North American Investment Grade 32 index ended Tuesday mostly unchanged at a spread of 60 bps.

NXP Semiconductors prices

NXP Semiconductors priced $1.75 billion of senior notes (Baa3/BBB-/BBB-) in two tranches in a Rule 144A and Regulation S offering on Tuesday, according to a news release and a market source.

Co-issuers NXP BV, NXP Funding LLC and NXP USA, Inc. sold $750 million of 3.875% seven-year notes at a spread of 185 bps over Treasuries. The notes priced on the tight side of guidance in the 190 bps spread area.

The company placed $1 billion of 4.3% 10-year notes in line with guidance at a Treasuries plus 220 bps spread.

BofA Securities, Inc., Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC were the active bookrunners.

The notes will be guaranteed by parent company NXP Semiconductors.

NXP is an Eindhoven, the Netherlands-based manufacturer and retailer of semiconductor chips.

Santander raises $1 billion

Santander UK priced $1 billion of 2.875% five-year senior notes (Aa3/A/A+) on Tuesday at a spread of 105 bps over Treasuries, according to a market source.

The notes came on the tight side of guidance in the 110 bps spread area and better than initial talk in the 120 bps area.

BofA Securities Inc., J.P. Morgan Securities LLC, Santander Investment Securities Inc. and Wells Fargo Securities LLC were the bookrunners.

The notes are non-callable.

Proceeds will be used for general corporate purposes.

The financial services company is based in London.

MetLife brings two tranches

MetLife Global Funding I priced $1 billion of notes (Aa3/AA-/) in two tranches on Tuesday, according to a market source.

The company sold $500 million of 2.4% three-year notes at a spread of Treasuries plus 57 bps. Price guidance was in the Treasuries plus 60 bps area.

A $500 million tranche of 3.05% 10-year notes priced at a Treasuries plus 92 bps spread, on the tight side of guidance in the 95 bps spread area.

Barclays, HSBC Securities (USA) Inc., J.P. Morgan Securities and Wells Fargo Securities were the bookrunners.

The issuer is a financing arm of New York City-based insurance and employee benefits company MetLife Inc.

Southwestern Public sells bonds

Southwestern Public Service priced $300 million of 3.75% 30-year green first mortgage bonds at 98.739 to yield 3.821% on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The bonds due June 15, 2049 (A3/A/A-) priced at a spread of 120 bps over Treasuries.

BofA Securities, KeyBanc Capital Markets Inc. and U.S. Bancorp Investments Inc. were the bookrunners.

Amarillo, Texas-based Southwestern Public Service generates, purchases, distributes and sells electricity in portions of Texas and New Mexico.

Northwest Natural Gas prints

Northwest Natural Gas sold $140 million of series B secured and unsecured medium-term notes in two tranches on Tuesday, according to a market source and an FWP filing with the SEC.

The company priced $50 million of unsecured notes due June 15, 2029 (Baa1/A+/) at par to yield 3.141% and a spread of 100 bps over Treasuries. Initial talk was in the Treasuries plus 120 bps area.

Northwest Natural Gas sold $90 million of 30-year secured notes (A2/AA-/) at par to yield 3.869%. The notes priced at a Treasuries plus 125 bps spread, compared to initial guidance in the 150 bps spread area.

U.S. Bancorp Investments, CIBC World Markets Corp. and TD Securities (USA) LLC were the bookrunners.

The utility company is based in Portland.

EIB brings notes

The European Investment Bank (Aaa/AAA/AAA) priced $1 billion of three-year floating-rate notes on Tuesday at the SOFR plus 29 bps, according to a market source.

The notes due June 10, 2022 were initially talked to price at SOFR plus 30 bps area.

BofA Securities, RBC Capital Markets, LLC and TD Securities were the lead managers of the Rule 144A and Regulation S transaction.

The lender for the European Union is based in Kirchberg, Luxembourg.

IADB prices $2.1 billion

The Inter-American Development Bank (Aaa/AAA/) priced $2.1 billion of 2.25% 10-year global notes on Tuesday at mid-swaps plus 15 bps, or a Treasuries plus 12.25 bps spread, according to a market source.

The notes due June 18, 2029 were initially talked to price in the mid-swaps plus 16 bps area.

Citigroup Global Markets Inc., Goldman Sachs and TD Securities were the bookrunners.

The provider of development financing for Latin America and the Caribbean is based in Washington, D.C.

PartnerRe in deal pipeline

PartnerRe (Baa2/A-/A-) intends to price a dollar-denominated offering of senior notes following fixed income investor calls that end Tuesday, according to a market source.

The investor calls started on Monday.

Citigroup Global Markets, Credit Agricole Securities (USA) Inc., Goldman Sachs and HSBC Securities are the arrangers.

PartnerRe is a Pembroke, Bermuda-based reinsurance provider and a subsidiary of EXOR Nederland NV.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.