Ford, CA Inc., IADB, ANZ, Brixmor price; PepsiCo bonds improve; McDonald’s flat to weaker

By Aleesia Forni and Cristal Cody

Virginia Beach, July 30 – Ford Motor Credit Co. LLC, ANZ Banking Group Ltd., Inter-American Development Bank, CA Inc. and Brixmor Operating Partnership LP priced new issues on Thursday during a weaker session for the market amid a “risk off” sentiment.

Ford sold $2 billion of notes in two parts, a market source said, after plans for a five-year floating-rate tranche were scrapped earlier during the session.

CA Inc. was also in the market on Thursday, pricing a downsized $400 million five-year note in line with price talk after dropping a 10-year tranche.

Meantime, Brixmor sold $500 million of seven-year notes, and IADB priced a $500 million floating-rate global note.

In forward calendar news, United Community Banks Inc. and Royal Bank of Scotland Group plc announced plans to bring new deals to market.

So far, more than $20 billion of new issuance has come to market this week, falling short of what was pegged to be around $25 billion to $30 billion of supply.

Investment-grade bonds were mixed over the day, while credit spreads headed out about 1 basis point weaker.

PepsiCo Inc.’s 2.75% senior notes due 2025 firmed 4 bps over the session but were still weaker than where the notes priced in April.

McDonald’s Corp.’s senior notes (A3/A-/BBB+) traded flat to 2 bps softer and more than 10 bps wider than issuance.

The Markit CDX North American Investment Grade index eased 1 bp to a spread of 71 bps on Thursday.

Ford sells $2 billion

Thursday’s primary saw Ford Motor Credit sell $2 billion of senior notes (Baa3/BBB-/BBB-) in two tranches, according to a market source and an FWP filed with the Securities and Exchange Commission.

The company’s sale included a $1.3 billion 2.157% five-year note priced at par on top of guidance with a spread of Treasuries plus 155 bps.

The notes were initially talked in the 165 bps area over Treasuries.

A $700 million tranche of 4.134% 10-year notes also sold on top of guidance at par with a spread of Treasuries plus 187.5 bps.

Pricing followed initial talk in the 200 bps area over Treasuries.

Plans for a five-year floating-rate tranche were dropped prior to the deal’s launch.

Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Mizuho Securities and Morgan Stanley & Co. LLC are the bookrunners.

Proceeds will be added to the general funds of Ford Credit and will be available for the purchase of receivables, for loans and for use in connection with the retirement of debt.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based automaker Ford Motor Co.

ANZ prices tight

Also on Thursday, ANZ Banking Group priced a $750 million 2.85% five-year senior note with a spread of Treasuries plus 125 bps, a market source said.

The issue (Aa3/AA-/AA-) sold at 99.917 to yield 2.868%.

Pricing was tight of initial talk set in the range of 130 bps to 135 bps over Treasuries.

ANZ, Goldman Sachs & Co., Citigroup Global Markets and J.P. Morgan Securities LLC managed the Rule 144A and Regulation S sale.

The financial services company is based in Melbourne, Australia.

Brixmor new issue

Brixmor Operating Partnership sold $500 million of 3.875% seven-year senior notes (Baa3/BBB-/BBB-) on Thursday with a spread of 200 bps over Treasuries, according to an FWP filed with the SEC.

Pricing was at 99.223 to yield 4.003%.

The bookrunners are Deutsche Bank Securities Inc., BofA Merrill Lynch and RBC Capital Markets LLC.

Proceeds will be used to repay outstanding debt under the company’s $1.25 billion unsecured revolving credit facility.

Any remaining net proceeds will be used for general corporate purposes.

Brixmor Operating is a subsidiary of New York-based Brixmor Property Group Inc., an internally managed real estate investment trust that owns and operates a wholly owned portfolio of grocery-anchored community and neighborhood shopping centers.

IADB floaters

The primary also hosted Inter-American Development Bank, which priced $500 million of floating-rate global notes (Aaa/AAA/) due 2020 at par to yield Libor plus 1 bp, according to a market source.

Goldman Sachs and Nomura were the bookrunners.

The issuer provides financing for Latin American and Caribbean countries and is based in Washington, D.C.

CA Inc. five-year notes

CA Inc. priced $400 million of 3.6% five-year senior notes (Baa2/BBB+/BBB+) in line with talk at Treasuries plus 200 bps, a market source said.

The issue sold at 99.901 to yield 3.622%.

Plans for a 10-year tranche of notes, which was talked in the 250 bps area over Treasuries, were dropped prior to the deal’s launch.

Bookrunners were BofA Merrill Lynch, JPMorgan, Barclays, Citigroup Global Markets and Morgan Stanley.

Proceeds will be used for general corporate purposes, which may include the repayment of borrowings under its credit facility that were used to fund part of the acquisition of Rally Software Development Corp.

CA is an Islandia, N.Y.-based information technology company.

United Community eyes notes

United Community Banks joined the forward calendar on Thursday.

The Blairsville, Ga.-based bank holding company is planning to sell senior fixed-to-floating notes in tranches due February 2022 and February 2027, according to a 424B5 filed with the Securities and Exchange Commission.

U.S. Bancorp Investments Inc. is the bookrunner.

Co-managers are FIG Partners LLC and SunTrust Robinson Humphrey Inc.

Proceeds will be used to fund the company’s acquisition of Palmetto Bancshares, Inc. and its subsidiary Palmetto Bank, and for general corporate purposes, which may include the potential repayment or redemption of trust preferred securities and other debt and acquisitions.

RBS eyeing tier 1 notes

Royal Bank of Scotland announced plans on Thursday to sell perpetual subordinated contingent convertible additional tier 1 securities, according to a company news release.

The deal is expected to further strengthen the company’s capital base.

RBS Securities Inc. is the global coordinator, structuring adviser, lead manager and bookrunner and is joined by Credit Suisse Securities (USA) LLC, BofA Merrill Lynch and Morgan Stanley & Co as joint lead bookrunners and managers.

The financial services company is based in Edinburgh.

PepsiCo firms

PepsiCo’s 2.75% notes due 2025 firmed 4 bps to 101 bps bid in secondary trading, according to a market source.

The company sold $1 billion of the notes (A1/A-/A) on April 27 at a spread of Treasuries plus 87 bps.

PepsiCo is a Purchase, N.Y.-based global food and beverage company.

McDonald’s flat to softer

McDonald’s 2.2% notes due 2020 were unchanged at 86 bps bid in the secondary market on Thursday, a source said.

The company sold $700 million of the notes on May 18 at Treasuries plus 70 bps.

McDonald’s 4.6% notes due 2045 were quoted 2 bps weaker in late afternoon trading at 172 bps bid.

McDonald’s sold $600 million of the notes in the May 18 offering at Treasuries plus 155 bps.

The fast food chain is based in Oak Brook, Ill.

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