IG primary slows; Expedia is selling $1.25 billion 2030 notes; FHLB to price $600 million add-on

By Rebecca Melvin

New York, Sept. 11 – As predicted new issuance of investment grade corporate bonds slowed on Wednesday. Volume tapered off this week following record volume last week and continuing flow on Monday.

However, pricing details emerged on a couple of deals on Wednesday, and a number of companies announced and priced deals, including Expedia Group Inc., which said it is selling $1.25 billion of 3.25% notes due 2030 in a private Rule 144A and Regulation S offering.

The Bellevue, Wash.-based online travel company will use proceeds for general corporate purposes.

In addition, Federal Home Loan Bank System announced that it plans to price a $600 million add-on to its existing 3.25% notes due 2028.

Sumitomo Mitsui Financial Group Inc. priced $500 million of 3.202% 10-year subordinated notes at par on Tuesday for a spread over Treasuries of 148 basis points.

Waltham, Mass.-based tech firm PerkinElmer Inc. priced $850 million of 3.3% 10-year senior notes at 99.67 for a spread over Treasuries of 162.5 bps.

Brookfield Renewable Partners LP priced C$600 million of medium-term notes (/BBB+/DBRS: BBB) in two tranches on Wednesday, according to a company news release.

The company priced C$300 million of series 12 3.38% notes due Jan. 15, 2030.

It also priced C$300 million of series 13 4.29% notes due Nov. 5, 2049.

The offering is led by CIBC World Markets Inc., TD Securities Inc., Scotia Capital Inc. and RBC Dominion Securities Inc.

Brookfield Renewable plans to use the net proceeds to repay debt incurred to fund eligible investments, including the early redemption of the 5.14% medium term notes issued by Brookfield Renewable Power Inc. due Oct. 13, 2020.

The Toronto-based company, part of Brookfield Asset Management, is an alternative asset manager that operates a portfolio of hydroelectric and wind facilities in North America, Latin America and Europe.

And Ameren Corp. priced $450 million of 2.5% five-year notes (Baa1/BBB/) at 99.967 to yield 2.507%, or a spread to U.S. Treasuries of 92 bps, according to a filing with the Securities and Exchange Commission.

Bookrunners are BNP Paribas, BofA Merrill Lynch, Morgan Stanley and SMBC Nikko.

Co-managers are Academy Securities, CastleOak Securities LP and Siebert Cisneros Shank & Co. LLC.

The St. Louis-based electric and natural gas company plans to use the proceeds to repay a portion of short-term debt, consisting of commercial paper issuances.

As of Sept. 10, Ameren’s outstanding commercial paper totaled $559 million, according to the filing.

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