Toyota, National Australia, BPCE, Ares among issuers; EIB markets notes; deal pipeline grows

By Cristal Cody

Tupelo, Miss., Jan. 8 – Toyota Motor Credit Corp. and National Australia Bank Ltd. led deal action in the high-grade market on Monday with multiple-tranche bond offerings.

Toyota Motor Credit sold $2.5 billion of notes (Aa3/AA-/) in five tranches.

National Australia Bank (Aa3/AA-/AA-) priced $2.5 billion of senior notes in four tranches.

Also on Monday, BPCE SA priced $1.7 billion of senior notes (A2/A/A) in two parts.

Ares Capital Corp. sold $600 million of long seven-year senior notes.

In addition, Air Lease Corp. was marketing a two-tranche deal.

Supply is expected to be strong over the week with about $25 billion to $30 billion of supply forecasted, according to sources.

The European Investment Bank is expected to price a benchmark-sized offering of notes due March 15, 2023 on Tuesday. The notes were initially talked to price in the mid-swaps plus 17 basis points spread area.

Also on Tuesday, Patterson-UTI Energy, Inc. is scheduled to conclude a two-day round of fixed income investor calls for a $500 million Rule 144A and Regulation S offering of senior notes.

Deal action is expected to be strong over the month, according to market sources.

More than $21 billion of bonds priced over the previous week.

In the year-ago period, January 2017 posted the highest monthly volume on record with $176 billion of high-grade bonds sold, according to a BofA Merrill Lynch note released on Monday.

The Markit CDX North American Investment Grade 29 index ended the day modestly tighter at a spread of 45.4 bps.

Toyota sells five tranches

Toyota Motor Credit priced $2.5 billion of notes in five tranches, according to a market source.

The company sold $400 million of two-year floaters at Libor plus 10 bps and $750 million of 2.2% two-year fixed-rate notes at a spread of Treasuries plus 29 bps.

Toyota priced $250 million of five-year floaters at Libor plus 39 bps and sold $600 million of 2.7% five-year fixed-rate notes with a spread of 43 bps over Treasuries.

The company sold $500 million of 3.05% 10-year notes with a spread of 60 bps over Treasuries.

BofA Merrill Lynch, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC and Societe Generale CIB were the bookrunners.

Toyota Motor Credit is a Torrance, Calif.-based financing arm and subsidiary of Toyota Motor Corp.

National Australia Bank prices

National Australia Bank sold $2.5 billion of senior notes in four tranches during the session, according to a market source.

The bank sold $600 million of three-year floaters at Libor plus 35 bps and $900 million of 2.5% three-year fixed-rate notes with a spread of 53 bps over Treasuries.

National Australia Bank priced $500 million of long five-year floaters at Libor plus 60 bps and sold the $500 million tranche 2.875% long five-year fixed-rate notes with a Treasuries plus 65 bps spread.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC, Morgan Stanley and nabSecurities, LLC were the bookrunners.

National Australia Bank is a financial institution based in Melbourne.

BPCE prices $1.7 billion

BPCE came with $1.7 billion of senior notes in two tranches on Monday, according to a market source.

The company sold $850 million of 2.75% notes due Jan. 11, 2023 at a spread of Treasuries plus 65 bps.

BPCE priced $850 million of 3.25% notes due Jan. 11, 2028 at a Treasuries plus 90 bps spread.

Goldman Sachs & Co.., HSBC, J.P. Morgan Securities, LLC, Morgan Stanley and Natixis Securities Americas LLC were the lead managers.

The financial services company is based in Paris.

Ares Capital sells notes

Ares Capital sold $600 million of 4.25% long seven-year senior notes (/BBB/BBB) at a 190 bps spread over Treasuries, according to a market source and a company news release.

The notes priced on the tight side of guidance in the Treasuries plus 195 bps area.

BofA Merrill Lynch, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp., J.P. Morgan Securities and SMBC Nikko Securities America, Inc. were the bookrunners.

The New York specialty finance company intends to use the proceeds to repay debt under its revolving credit facility, revolving funding facility and SMBC funding facility.

© 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.