Simon Property, Westpac, 21st Century Fox, Plains All American price deals; credit spreads firm

By Cristal Cody

Eureka Springs, Ark., Nov. 15 – Investment-grade supply on Tuesday included offerings from Simon Property Group, LP, Westpac Banking Corp., 21st Century Fox America, Inc. and Plains All American Pipeline, LP/PAA Finance Corp.

Simon Property Group priced $1.85 billion of notes in three tranches.

Westpac Banking sold $1.5 billion of subordinated notes in a deal first announced on Monday.

21st Century Fox America came with $850 million of senior notes in two parts.

Plains All American Pipeline brought $750 million of 10-year senior notes.

Credit spreads tightened over the day. The Markit CDX North American Investment Grade index closed 3 basis points better at a spread of 74 bps.

Canadian investment-grade supply also has picked up following a light pipeline in October and early November.

Morguard Corp. sold C$200 million of 4.013% four-year senior debentures at par to yield a spread of 315 bps over the interpolated Government of Canada bond curve on Tuesday.

Hydro One Inc. priced C$950 million of medium-term notes in two tranches.

Also, Toronto-based CHIP Mortgage Trust closed on an offering of C$175 million of 2.981% five-year senior medium-term notes (DBRS: AAA), according to a company release on Tuesday.

“We are very pleased with the overwhelming response to our offering, which has been heavily oversubscribed,” Atul Chandra, CHIP chief financial officer, said in the release. “As a result of several structural enhancements, which have resonated extremely well with investors, demand for the notes was exceptionally strong, with the broadest investor distribution ever of any CMT offering, including the addition of a number of new investors to the program.”

In the secondary market, Goldman Sachs Group Inc.’s 3.5% notes due 2026 traded about 1½ bps better than where the notes priced on Thursday.

Simon prices $1.85 billion

Simon Property Group raised $1.85 billion in a three-tranche offering of notes (A2/A/) on Tuesday, according to FWP filings with the Securities and Exchange Commission.

Simon Property Group priced $550 million of 2.35% notes due Jan. 30, 2022 at 99.672 to yield 2.417%, or 75 bps over Treasuries.

The company priced $750 million of 3.25% notes due Nov. 30, 2026 at 99.737 to yield 3.281%, or Treasuries plus 105 bps.

The $550 million of 4.25% notes due Nov. 30, 2046 were sold at 99.378 to yield 4.287%. The bonds priced with a spread of 130 bps over Treasuries.

Citigroup Global Markets Inc., Goldman Sachs & Co., BofA Merrill Lynch, U.S. Bancorp Investments Inc., Barclays, BNP Paribas Securities Corp., RBC Capital Markets, LLC, Scotia Capital (USA) LLC and UBS Securities LLC were the bookrunners.

Proceeds will be used for general business purposes.

The real estate investment trust for retail properties is based in Indianapolis.

Westpac raises $1.5 billion

Westpac Banking sold $1.5 billion of 4.322% fixed-to-floating subordinated notes due Nov. 23, 2031 on Tuesday with a spread of 210 bps plus Treasuries, according to a market source.

The notes priced on the tight side of talk.

BofA Merrill Lynch, Citigroup, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

The notes bear interest at a fixed rate until November 2026 and then carry a coupon based on the five-year mid-swap rate, according to a 424B5 filing with the SEC.

The notes are redeemable in November 2026.

Proceeds will be used for general corporate purposes.

The Australian bank and financial services provider is based in Sydney.

21st Century Fox sells bonds

Twenty-First Century Fox, Inc. subsidiary 21st Century Fox America sold $850 million of senior notes (Baa1/BBB+/BBB+) in a private Rule 144A and Regulation S offering on Tuesday, according to a market source and a news release.

The company priced $450 million of 3.375% 10-year notes with a spread of 117 bps over Treasuries.

In the second tranche, $400 million of 4.75% 30-year notes were sold with a spread of 177 bps plus Treasuries.

Both tranches priced on the tight side of guidance.

JPMorgan was the bookrunner.

The notes are guaranteed by the parent company.

Proceeds will be used for general corporate purposes.

New York-based Twenty-First Century Fox operates cable and broadcasting networks and properties.

Plains All American prices

Plains All American Pipeline and PAA Finance sold $750 million of 4.5% 10-year senior notes on Tuesday with a spread of 230 bps over Treasuries, according to an FWP filing with the SEC.

The notes due Dec. 15, 2026 (Baa3/BBB-/BBB) priced at 99.716 to yield 4.535%.

JPMorgan, BNP Paribas Securities Corp., BofA Merrill Lynch, Wells Fargo Securities LLC, BBVA Securities Inc., DNB Markets, Inc. and SMBC Nikko Securities America, Inc. were the bookrunners.

Proceeds will be used to repay outstanding borrowings under the company’s senior unsecured revolving credit facility and commercial paper program and for general partnership purposes.

The oil and natural gas transportation, production and storage company is based in Houston.

Goldman improves

Goldman Sachs’ 3.5% notes due 2026 were quoted in secondary trading earlier on Tuesday at 136 bps offered, according to a market source.

Goldman Sachs sold $2.75 billion of the 10-year notes on Thursday at a spread of 137.5 bps over Treasuries.

Goldman is a New York-based banking, securities and investment management company.

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