High-grade volume strong; Pfizer, MUFG, Unilever, Caterpillar, Bunge, Duke price notes

By Cristal Cody

Tupelo, Miss., Sept. 4 – Investment-grade issuers priced more than $12 billion of bonds on Tuesday following the long holiday weekend and thin issuance over the back half of August.

Pfizer Inc. sold $5 billion of senior notes in six tranches.

Mitsubishi UFJ Financial Group, Inc. priced $3 billion of senior notes in three tranches.

Unilever Capital Corp. sold a $1.5 billion three-part offering of guaranteed senior notes.

Caterpillar Financial Services Corp. priced $1.25 billion of three-year medium-term notes in two tranches.

Bunge Ltd. Finance Corp. sold $600 million of guaranteed notes due March 15, 2024.

Duke Realty LP raised $450 million in an offering of 10-year senior notes.

PECO Energy Co. also priced a $325 million add-on to its 3.9% first and refunding mortgage bonds due March 1, 2048.

About $45 billion to $55 billion of volume for the holiday-shortened week is expected by market sources following light supply last week. Just under $7 billion of investment-grade bonds, including $2.5 billion of corporate bonds, priced in the previous week, while the prior week saw nearly $10 billion of deal volume.

The Markit CDX North American Investment Grade 30 index ended less than 1 basis point softer on the day at a spread of 61 bps.

Pfizer prices $5 billion

Pfizer sold $5 billion of senior notes (A1/AA/A+) in six tranches on Tuesday, according to a market source.

Pfizer priced $1 billion of 3% three-year notes at a spread of Treasuries plus 32 bps.

The company sold $300 million of five-year floating-rate notes at Libor plus 33 bps.

A $1 billion tranche of 3.2% five-year fixed-rate notes priced at a 47 bps over Treasuries spread.

Pfizer priced $1 billion of 3.6% 10-year notes at a spread of 72 bps over Treasuries.

The company sold $700 million of 4.1% 20-year notes at a 105 bps spread plus Treasuries.

In the final tranche, Pfizer priced $1 billion of 4.2% 30-year notes at a spread of 115 bps over Treasuries.

BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC were the bookrunners.

The biopharmaceutical company is based in New York.

Mitsubishi brings $3 billion

Mitsubishi UFJ Financial Group priced $3 billion of senior notes (A1/A-/A) in three tranches on Tuesday, according to a market source.

The company placed an $850 million tap of its floating-rate notes due July 26, 2023 to yield Libor plus 81 bps.

Mitsubishi originally sold $800 million of the floaters on July 17 at par to yield Libor plus 86 bps. The total outstanding is now $1.65 billion.

MUFG also priced a $1.15 billion add-on to its 3.761% notes due July 26, 2023 at a spread of 95 bps over Treasuries.

The five-year notes originally priced in a $1 billion tranche in the July offering at par to yield a spread of Treasuries plus 100 bps. The total outstanding is now $2.15 billion.

Mitsubishi also priced $1 billion of new 4.05% 10-year notes at a Treasuries plus 115 bps spread.

Morgan Stanley, MUFG, Citigroup Global Markets and J.P. Morgan Securities LLC were the bookrunners.

The bank is based in Tokyo.

Unilever raises $1.5 billion

Unilever Capital sold $1.5 billion of guaranteed senior notes (A1/A+/A+) in three tranches on the tight side of guidance on Tuesday, according to a market source.

The company priced $500 million of 3% notes due March 7, 2022 at a spread of Treasuries plus 42 bps.

Unilever sold $500 million of 3.25% notes due March 7, 2024 at a Treasuries plus 62 bps spread.

The company also priced a $500 million add-on to its 3.5% notes due March 22, 2028 at a Treasuries plus 72 bps spread.

The issue originally priced on March 19 in an $800 million offering at 98.489 to yield 3.682%, or a spread of Treasuries plus 83 bps. The total outstanding is now $1.3 billion.

BofA Merrill Lynch, Goldman Sachs & Co. LLC, J.P. Morgan Securities and UBS Securities LLC were the bookrunners.

The notes are guaranteed by Unilever NV, Unilever plc and Unilever United States, Inc.

The U.S. office of the Dutch and English consumer goods company is based in Englewood Cliffs, N.J.

Caterpillar sells two tranches

Caterpillar Financial Services priced $1.25 billion of three-year medium-term notes (A3/A/A) in two tranches on Tuesday, according to FWP filings with the Securities and Exchange Commission.

A $450 million tranche of floating-rate notes due Sept. 7, 2021 priced at par to yield Libor plus 28 bps.

The company sold $800 million of 3.15% three-year fixed-rate notes at 99.923 to yield 3.177% and a spread of 45 bps over Treasuries.

Barclays, J.P. Morgan Securities and SG Americas Securities LLC were the bookrunners.

Nashville-based Caterpillar Financial Services is a financing arm of Caterpillar Inc.

Bunge in primary

Bunge sold $600 million of 4.35% senior guaranteed fixed-rate notes due March 15, 2024 (Baa2/BBB/BBB) on top of guidance Tuesday at a spread of 160 bps over Treasuries, according to a market source.

J.P. Morgan Securities, HSBC Securities (USA) Inc., Morgan Stanley, SMBC Nikko Securities America Inc., ABN Amro Inc., ING Financial Markets LLC, Natixis Securities Americas LLC and Rabo Securities USA, Inc. were the bookrunners.

The notes are guaranteed by parent company Bunge Ltd.

The agribusiness and food company is based in White Plains, N.Y.

Duke Realty prints

Duke Realty sold $450 million of 4% 10-year senior notes (Baa1/BBB+/) at 98.926 to yield 4.132%, or a spread of Treasuries plus 123 bps, on Tuesday, according to an FWP filed with the SEC.

Wells Fargo Securities LLC, Barclays, J.P. Morgan Securities, RBC Capital Markets LLC, UBS Securities, Regions Securities LLC and Scotia Capital (USA) Inc. were the bookrunners.

Duke Realty is the operating partnership of Indianapolis-based Duke Realty Corp., which owns and operates industrial and health care properties.

PECO reopens

PECO Energy priced a $325 million reopening of 3.9% first and refunding mortgage bonds due March 1, 2048 on Tuesday at a spread of 105 bps over Treasuries, according to an FWP filing with the SEC.

The bonds (Aa3/A-/A) priced at 96.347 to yield 4.115%.

PECO Energy originally sold $325 million of the notes on Feb. 15 at 99.508 to yield 3.928% and a spread of 77 bps over Treasuries. The total outstanding is now $650 million.

The bookrunners were CIBC World Markets Corp., Citigroup Global Markets, Morgan Stanley, PNC Capital Markets LLC and RBC Capital Markets.

The electric and natural gas transmission subsidiary of Exelon is based in Philadelphia.

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