Tupelo, Miss., April 7 – Investment-grade issuers priced more than $13 billion of bonds on Tuesday, bringing week to date corporate and sovereign, supranational and agency volume to over $30 billion.
Heavy front-loaded issuance was anticipated with the markets set to close early on Thursday and remain closed on Friday for the Good Friday holiday.
The Markit CDX North American Investment Grade 33 index firmed about 7 bps to a spread of 112.59 bps. The index has tightened about 17 bps from Friday’s level.
The iShares iBoxx Investment Grade Corporate Bond ETF ended the day 0.15% better.
The PIMCO Investment Grade Corporate Bond Index ETF closed up 45 cents, or 0.043%.
Keurig Dr Pepper priced $1.5 billion of senior notes (Baa2/BBB/) in two tranches on Tuesday, according to a market source and an FWP filed with the Securities and Exchange Commission.
A $750 million offering of 3.2% 10-year notes priced at 99.743 to yield 3.23% and a spread of 250 bps over Treasuries.
The company sold $750 million of 3.8% 30-year notes at 99.448 to yield 3.831%, or with a Treasuries plus 250 bps spread.
Both tranches were talked to print with a spread in the Treasuries plus 300 bps area.
| BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Mizuho Securities USA LLC, Morgan Stanley | & Co. LLC, SMBC Nikko Securities America, | Inc. and SunTrust Robinson Humphrey, | Inc. were the bookrunners.
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| The beverage conglomerate is based in Burlington, Mass.
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| BAE brings $1.3 billion
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| BAE Systems (Baa2/BBB/BBB) priced a $1.3 billion Rule 144A and Regulation S offering of 3.4% 10-year senior notes on Tuesday at a spread of Treasuries plus 275 bps, according to a market source.
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| The notes were guided to print at the 312.5 bps over Treasuries area.
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| Deutsche Bank Securities Inc., Goldman Sachs, Morgan Stanley and NatWest Markets Securities Inc. were the bookrunners.
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| BAE Systems is a global defense, security and aerospace company based in London and Farnborough, U.K.
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| Mondelez International prices
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| Mondelez International priced $1 billion of notes (Baa1/BBB/) in two tranches on Tuesday, according to a market source and an FWP filing.
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| The company sold $500 million of 2.125% three-year notes at 99.769 to yield 2.205%, or a spread of Treasuries plus 185 bps.
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| The three-year notes were initially talked to price at the Treasuries plus 237.5 bps area.
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| Mondelez sold $500 million of 2.75% 10-year notes at 99.032 to yield 2.862%. The notes priced at a Treasuries plus 212.5 bps spread.
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| Initial guidance was at the 275 bps spread area.
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| Barclays, BofA Securities, J.P. Morgan and Wells Fargo Securities LLC were the bookrunners.
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| Mondelez is a snack company with global headquarters in Deerfield, Ill.
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| NiSource raises $1 billion
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| NiSource sold $1 billion of 3.6% 10-year notes at a spread of Treasuries plus 290 bps, tighter than talk in the 350 bps spread area, according to a market source and an FWP filing.
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| The notes (Baa2/BBB+/BBB) priced at 99.631 to yield 3.644%.
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| Barclays, J.P. Morgan, MUFG and PNC Capital Markets LLC were the bookrunners.
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| NiSource is a Merrillville, Ind.-based company with businesses in natural gas transmission, storage and distribution, and electricity generation, transmission and distribution.
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| Phillips 66 Partners prices
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| Phillips 66 priced $1 billion of guaranteed senior notes (Baa3/BBB/) in two tranches on Tuesday, according to a market source.
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| The company sold $500 million of 3.7% three-year notes at a spread of Treasuries plus 337.5 bps.
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| Phillips 66 priced $500 million of 3.85% five-year notes at a spread of Treasuries plus 337.5 bps.
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| Initial talk on both tranches was in the Treasuries plus 450 bps area.
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| BofA Securities, Citigroup Global Markets Inc., Mizuho and TD Securities (USA) LLC were the bookrunners.
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| The notes are guaranteed by Phillips 66 Co.
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| Phillips 66 is a Houston-based energy manufacturing and logistics company with midstream, chemicals, refining, and marketing and specialties businesses.
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| Avangrid in primary
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| Meanwhile, Avangrid sold $750 million of 3.2% five-year green notes (Baa1/BBB/BBB+) on Tuesday at a spread of 275 bps over Treasuries, according to a market source and an FWP filing.
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| Initial price talk was in the Treasuries plus 325 bps area.
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| The issue priced at 99.871 to yield 3.228%.
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| BBVA Securities Inc., BNP Paribas, BofA Securities Inc., MUFG, CIBC World Markets Corp., Commerz Markets LLC, NatWest and Scotia Capital (USA) Inc. were the bookrunners.
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| Avangrid is an electric and gas utility based in Orange, Conn.
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| Estee Lauder sells notes
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| Estee Lauder priced $700 million of 2.6% 10-year senior notes (A1/A+/) during the session at a spread of Treasuries plus 185 bps, according to a market source and an FWP filing.
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| The notes were initially talked to price in the Treasuries plus 237.5 bps area.
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| The issue priced at 99.816 to yield 2.621%.
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| BofA Securities, Citigroup, J.P. Morgan, BNP Paribas and MUFG were the bookrunners.
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| New York-based Estee Lauder is a manufacturer and marketer of skin care, makeup, fragrance and hair care products.
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| Narragansett Electric prints
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| Narragansett Electric (A3/A/) priced an upsized $600 million of 3.395% 10-year notes in a Rule 144A and Regulation S offering on Tuesday at a Treasuries plus 265 bps spread, according to a market source.
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| Initial price talk was in the Treasuries plus 300 bps to 312.5 bps area.
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| The deal size was increased from $500 million.
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| Citigroup, J.P. Morgan, MUFG, SMBC Nikko and TD Securities were the bookrunners.
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| Narragansett Electric, a subsidiary of National Grid USA Service Co., Inc., is an electric and gas company based in Providence, R.I.
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| Brookfield upsizes
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| Brookfield Finance priced an upsized $600 million of 4.35% 10-year senior notes (Baa1/A-/A-) at a spread of 362.5 bps over Treasuries, according to a market source and an FWP filing.
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| The notes priced at 99.903 to yield 4.362%.
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| The deal was upsized from $500 million.
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| Initial price guidance on the issue was in the 375 bps to 387.5 bps over Treasuries area.
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| Deutsche, HSBC Securities (USA) Inc. and Citigroup were the bookrunners.
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| The notes will be guaranteed by Toronto-based alternative asset manager Brookfield Asset Management Inc.
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| BNG prices $2 billion
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| BNG Bank (Aaa/AAA/AAA) priced $2 billion of 0.75% three-year bonds on Tuesday at mid-swaps plus 32 bps, or a spread of Treasuries plus 44.9 bps, according to a market source.
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| Price guidance had firmed to mid-swaps plus 32 bps from initial talk in the 35 bps spread area.
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| BofA Securities, Barclays, Goldman Sachs and RBC Capital Markets, LLC were the bookrunners.
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| The banking services company, formerly known as N.V. Bank Nederlandse Gemeenten, is based in The Hague, Netherlands.
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| Ontario Teachers’ prints
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| Also on Tuesday, Ontario Teachers’ Finance Trust (Aa1/AA+/) priced a $1 billion Rule 144A and Regulation S offering of 1.375% five-year senior notes at mid-swaps plus 80 bps, or a spread of 92.05 bps over Treasuries, according to a market source.
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| Initial guidance on the issue due April 15, 2025 was in the mid-swaps plus 80 bps area.
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| BofA Securities, Citigroup, HSBC Securities (USA) Inc. and Scotia were the bookrunners.
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| Ontario Teachers’ Finance Trust is a Toronto-based financing arm of the Ontario Teachers’ Pension Plan Board.
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