Danone, America Express, Daimler, Penske Truck among issuers; AT&T softens; Time Warner flat

By Cristal Cody

Eureka Springs, Ark., Oct. 26 – Investment-grade issuance kicked into high gear on Wednesday with more than $10 billion of bonds priced during the session.

Danone SA sold $5.5 billion of notes in four tranches.

The European Bank for Reconstruction and Development brought a $1 billion offering of five-year global notes.

American Express Credit Corp. tapped the market with a $1 billion sale of three-year senior medium-term notes in two tranches.

Daimler Finance North America LLC sold $2.5 billion in a three-part notes offering.

Penske Truck Leasing Co., LP priced an upsized $600 million of 10-year senior notes.

Also, Enterprise Financial Services Corp. and Japan Bank for International Cooperation are expected to price new deals.

Canadian high-grade issuance is anticipated in the week ahead following the Oct. 31 fiscal year-end for Canadian banks, a syndicate source said.

“Market tone is reasonable, but we don’t have a big pipeline,” the source said. “The maple market is starting to be attractive.”

The Markit CDX North American Investment Grade index was unchanged to modestly softer at a spread of 75 basis points.

In the secondary market, AT&T Inc.’s 4.125% notes due 2026 eased 2 bps.

The 2.95% notes due 2026 from Time Warner Inc., which AT&T plans to acquire in an $85.4 billion cash-and-stock deal, were flat on the day.

Danone prices $5.5 billion

Danone sold $5.5 billion of notes in four tranches on Wednesday, according to a market source.

The company priced $1.2 billion of 1.691% three-year notes at a spread of 67 bps over Treasuries.

Danone sold $800 million of 2.077% five-year notes at a 77 bps spread plus Treasuries.

The $1.5 billion tranche of 2.589% seven-year notes priced with a spread of 100 bps over Treasuries.

The company also sold $2 billion of 2.947% 10-year notes at a 115 bps plus Treasuries spread.

Barclays, BNP Paribas, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and HSBC Securities (USA) Inc. were the active bookrunners.

Danone is a food products company based in Paris.

EBRD sells $1 billion

The European Bank for Reconstruction and Development sold $1 billion of 1.5% five-year global notes (Aaa/AAA/AAA) with a spread of 22.5 bps over Treasuries on Wednesday, according to a market source.

BofA Merrill Lynch, Citigroup, HSBC and TD Securities (USA) LLC were the lead managers.

The financial institution is based in London.

American Express prints

American Express Credit sold $1 billion of series F three-year senior medium-term notes (A2/A-/A) in two tranches on Wednesday, according to FWP filings with the Securities and Exchange Commission.

America Express priced $750 million of 1.7% notes due Oct. 30, 2019 at 99.881 to yield 1.741%, or a spread of Treasuries plus 73 bps.

The $250 million floating-rate tranche priced at par to yield Libor plus 57 bps.

Barclays, RBC Capital Markets, LLC, Wells Fargo Securities, LLC, Lloyds Securities Inc., MUFG and U.S. Bancorp Investments, Inc. were the bookrunners.

American Express Credit is a New York City-based credit card services provider.

Daimler brings $2.5 billion

Daimler Finance North America sold $2.5 billion of notes (A3/A-/) in three parts on Wednesday, according to a market source.

The company priced $400 million of three-year floating-rate notes at Libor plus 62 bps.

Daimler sold a $1.1 billion tranche of 1.75% three-year fixed-rate notes at a spread of 78 bps over Treasuries.

The company also sold $1 billion of 2.2% five-year notes at 90 bps over Treasuries.

BofA Merrill Lynch, BNP Paribas, Citigroup and MUFG were the bookrunners.

Daimler Finance is a Wilmington, Del.-based financing arm of Daimler North America Corp.

Penske upsizes

Penske Truck Leasing and co-issuer PTL Finance Corp. priced an upsized $600 million of 3.4% 10-year senior notes with a spread of 165 bps over Treasuries on Wednesday, according to a market source.

The notes (Baa2/BBB-/BBB+) priced on the tight side of guidance.

The deal was upsized from $500 million.

BofA Merrill Lynch, JPMorgan, MUFG and Wells Fargo were the bookrunners.

Proceeds from the sale will be used to repay outstanding debt and for general corporate purposes.

The transportation services provider is based in Reading, Pa.

Kommunalbanken closes

Kommunalbanken AS priced $500 million of 1.375% four-year notes at 99.74 to yield 1.442% in an offering that closed on Wednesday, according to a final terms sheet.

The series 5210 notes are due Oct. 26, 2020.

Citigroup, Credit Agricole Corporate and Investment Bank and Skandinaviska Enskilda Banken AB were the managers.

Proceeds from the offering will be allocated within the issuer’s treasury liquidity portfolio to a green project portfolio for investments in eligible projects.

The government-funded lender to municipalities is based in Oslo.

AT&T eases

AT&T’s 4.125% notes due 2026 traded 2 bps softer on Wednesday to head out at 159 bps bid, according to a market source.

The company priced a $900 million reopening of the bonds on May 3 at Treasuries plus 150 bps.

The notes originally were sold on Jan. 29 in a $1.5 billion offering at 195 bps over Treasuries.

AT&T is a Dallas-based telecommunications company.

Time Warner tightens

Time Warner’s 2.95% notes due 2026 were unchanged in secondary trading on Wednesday at 125 bps bid, according to a market source.

The company sold $800 million of the notes on May 5 at a spread of 135 bps over Treasuries.

Time Warner is a New York-based media and entertainment company.

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