PepsiCo, D.R. Horton, Keysight price $2.25 billion of paper to start to high-grade week

Chicago, Oct. 7 – In high-grade primary action, issuers brought to market $2.25 billion of new paper to begin the Oct. 7 week.

PepsiCo, Inc. priced the largest share of that total with $1 billion of 2.875% 30-year green senior notes (A1/A+) brought via bookrunners Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC and Mizuho Securities USA Inc.

The offering is the company’s first green bond.

Concurrent with the offering, the company named its first chief sustainability officer. The company is focusing its sustainability efforts on plastics and packaging, decarbonization in its supply chain and water sustainability.

D.R. Horton, Inc. sold $500 million of 2.5% five-year senior notes on Monday, according to a press release.

The notes were initially planned to come sized at $400 million.

J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Wells Fargo Securities LLC, Citigroup Global Markets Inc. and U.S. Bancorp Investments Inc. worked as bookrunners on the deal.

Last week, the company amended its credit agreement with Mizuho Bank, Ltd., lifting credit commitments to $1.59 billion and extending the termination date to 2024.

The company’s accordion feature was also expanded to provide for a potential $2.5 billion aggregate commitment amount in the form of additional revolving commitments and incremental term loans.

Keysight Technologies Inc. came to market on Monday with $500 million of 3% 10-year notes (Baa2/BBB/BBB) at a spread of 145 basis points over Treasuries.

Proceeds from the notes will be used to repay the company’s $500 million of 3.3% senior notes due Oct. 30.

Keysight was upgraded by Moody’s Investors Service and S&P Global Ratings in August.

The company was last in the market with $700 million of 4.6% 10-year notes at 220 bps over Treasuries in March of 2017.

Calendar additions

Japan Bank for International Cooperation joined the forward calendar on Monday.

The notes, which will be guaranteed by Japan, will be issued in three tranches.

Toronto-Dominion Bank, another bank from outside of the United States, announced that it is planning to sell three-year notes.

The series C senior medium-term notes are non-callable.

Another Canadian bank, Bank of Montreal announced that it is in the market with 2.2% medium-term callable senior unsecured notes, series E, due April 28, 2023.

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