Interstate Power, TD Bank price; Shire starts roadshow; Pitney Bowes plans deal; CDX firms

By Cristal Cody

Eureka Springs, Ark., Sept. 12 – New investment-grade bond issuance priced on Monday included deals from Interstate Power and Light Co. and Toronto-Dominion Bank.

Interstate Power and Light sold $300 million of 30-year senior debentures.

Toronto-Dominion Bank priced $100 million of two-year floating-rate senior medium-term notes.

LegacyTexas Financial Group, Inc. and Southside Bancshares, Inc. also planned to price new bonds.

About $40 billion of high-grade bond volume is expected for the week.

Shire Acquisitions Investments Ireland DAC kicked off a roadshow on Monday for a five-tranche offering of senior notes guaranteed by Dublin-based parent company Shire plc.

Investor meetings are scheduled in the U.S. markets Monday through Wednesday and in London on Thursday. Bank of America Merrill Lynch, Barclays and Morgan Stanley & Co. Inc. are the bookrunners.

Also in the deal pipeline, Pitney Bowes Inc. announced plans to price an offering of senior notes.

The Markit CDX North American Investment Grade index tightened 3 basis points over the day to close at a spread of 73 bps.

In the secondary market, Toronto-Dominion Bank’s new 3.625% non-viability contingent capital subordinated notes due 2031 traded more than 10 bps tighter than issuance.

Interstate Power and Light prices

Interstate Power and Light sold $300 million of 3.7% senior debentures on Monday at 99.30 to yield 3.739%, according to a FWP filing with the Securities and Exchange Commission.

The debentures due Sept. 15, 2046 (Baa1/A-/) priced with a spread of 135 bps over Treasuries.

Barclays, J.P. Morgan Securities LLC and KeyBanc Capital Markets Inc. were the bookrunners.

Proceeds will be used to reduce capital under the company’s receivables purchase and sale program, reduce commercial paper classified as long-term debt and for general corporate purposes.

The electric and natural gas subsidiary of Alliant Energy Corp. is based in Cedar Rapids, Iowa.

TD Bank sells floaters

Toronto-Dominion Bank priced $100 million of two-year floating-rate senior medium-term notes at par on Monday, according to a FWP filing with the Securities and Exchange Commission.

The series A notes due Sept. 19. 2018 (Aa1/AA-/) priced with a coupon of three-month Libor plus 43 bps.

TD Securities (USA) LLC was the bookrunner.

The bank and financial services company is based in Toronto.

Pitney Bowes considers deal

Pitney Bowes plans to price an offering of senior notes with an intermediate maturity to help fund the redemption of all 300,000 outstanding shares of its perpetual voting preferred stock, according to an 8-K filing with the Securities and Exchange Commission on Monday.

The company’s subsidiary, Pitney Bowes International Holdings, Inc., is redeeming the shares valued at $300 million.

The annual 6.125% rate on the preferred shares is scheduled to reset to 9.1875% on Oct. 30, when the shares also become redeemable at the company’s option.

Pitney Bowes is a Stamford, Conn.-based provider of services, including eCommerce shipping and mailing.

TD Bank tightens

Toronto-Dominion Bank’s 3.625% notes due 2031 traded better early Monday at 193 bps bid in the secondary market, a source said.

The bank sold $1.5 billion of the non-viability contingent capital subordinated notes (A2/A-/DBRS: AL) on Thursday at a spread of 205 bps plus Treasuries.

The notes bear a 3.625% fixed rate to but excluding Sept. 15, 2026 and then bear a rate at five-year mid-swaps plus 220.5 bps thereafter to but excluding Sept. 15, 2031.

The bank and financial services company is based in Toronto.

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