Ameriprise, Piedmont bring deals to primary; AT&T firms; Verizon, Bank of America flat

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 15 – PNC Bank NA, A.P. Moller - Maersk A/S and Ameriprise Financial Inc. were among Monday’s issuers, hitting the high-grade market ahead of this week’s Federal Reserve meeting.

A.P. Moller came to market with a $1.25 billion two-part offering on Monday, pricing notes in five- and 10-year tranches.

Both tranches of PNC Bank’s new $1 billion offering sold at the tight end of price talk.

Ameriprise Financial issued an upsized $500 million of senior notes on Monday, with the deal’s new issue spread not budging from initial guidance.

Ross Stores Inc., Piedmont Natural Gas Co. Inc. and Brown & Brown Inc. were each in the market with smaller-sized deals on Monday.

Details of Brown & Brown’s new issue were unavailable at press time.

In forward calendar news, NRW.Bank set price talk for a proposed $1 billion offering of five-year notes on Monday.

The two-day Federal Open Market Committee meetings will likely keep a lid on issuance mid-week, though sources are still expecting around $20 billion to $25 billion of supply.

Investment-grade bonds opened unchanged to slightly wider on Monday and continued to weaken over the session, a source said.

The Markit CDX North American Investment Grade series 22 index eased 1 basis point to a spread of 61 bps.

Telecommunications bonds traded flat to 3 bps tighter, a source said.

AT&T Inc.’s 3.9% notes due 2024 firmed 3 bps in the secondary market, while Verizon Communications Inc.’s 4.15% senior notes due 2024 headed out little changed from Friday, the source said.

Bank of America Corp.’s paper traded flat on the day, according to a market source.

A.P. Moller two-parter

A.P. Moller sold $1.25 billion of notes in two parts on Monday, according to a company release.

The sale included $750 million of 2.55% notes due September 2019 and $500 million of 3.75% bonds due September 2024.

BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBS Securities Inc. were the bookrunners.

Proceeds will be used for general corporate purposes.

Full details were unavailable at press time.

The business conglomerate operating in global trade, transport and energy is based in Copenhagen.

PNC sells $1 billion

PNC Bank sold $1 billion of senior notes (A2/A/A+) in two parts on Monday, according to a market source.

The sale included $500 million of 1.5% notes due 2017 priced at 99.981 to yield 1.506%, or Treasuries plus 45 bps.

Pricing was at the tight end of the Treasuries plus 48 bps area talk.

A second tranche was $500 million of 2.4% notes due 2019 sold at 99.927 to yield 2.415%, or Treasuries plus 62.5 bps.

The notes sold at the tight end of talk, which was set in the area of Treasuries plus 65 bps area.

The bookrunners were Citigroup Global Markets, Morgan Stanley & Co. LLC, Goldman Sachs & Co. and PNC Capital Markets LLC.

PNC is a Pittsburgh-based bank and holding company.

Ameriprise upsizes

Ameriprise Financial sold an upsized $550 million of 3.7% senior notes (A3/A/) due 2024 at Treasuries plus 115 bps, according to a market source and an FWP filed with the Securities and Exchange Commission.

The notes sold in line with guidance.

Pricing was at 99.656 to yield 3.741%.

Barclays, HSBC Securities (USA) Inc. and JPMorgan were the bookrunners.

Proceeds will be used for general corporate purposes.

The financial planning and services company is based in Minneapolis.

Ross new issue

Ross Stores priced a $250 million issue of 3.375% senior notes (A3/A-/) due 2024 on Monday with a spread of Treasuries plus 87 bps, according to an FWP filed with the SEC.

Pricing was at 99.329 to yield 3.455%.

Wells Fargo Securities LLC, JPMorgan and BofA Merrill Lynch were the bookrunners.

Proceeds will be used to purchase the building in which the company’s New York buying office is located for $222 million. Remaining net proceeds will be used for general corporate purposes.

The chain of department stores is based in Pacifica, Calif.

Piedmont prices tight

Piedmont Natural Gas sold $250 million 4.1% senior notes due 2034 on Monday at Treasuries plus 78 bps, according to a market source and an FWP filed with the SEC on Monday.

Pricing was at the tight end of talk, which was set in the area of Treasuries plus 80 bps.

The notes (A2/A/) sold at 99.826 to yield 4.113%.

The bookrunners were RBC Capital Markets LLC and Wells Fargo Securities.

Proceeds will be used to finance capital expenditures, to repay outstanding short-term, unsecured notes under the company’s commercial paper program and for general corporate purposes.

The natural gas distributor is based in Charlotte, N.C.

NRW sets talk

NRW.Bank announced price talk for a $1 billion offering of five-year notes in the area of mid-swaps plus 13 bps, according to an informed source.

BofA Merrill Lynch, Barclays, Commerzbank and Credit Suisse Securities (USA) LLC are the joint bookrunners.

The financial development products and services company is based in Dusseldorf, Germany.

AT&T firms

In the secondary market, AT&T’s 3.9% notes due 2024 tightened 3 bps from Friday to 95 bps offered, a source said on Monday.

AT&T sold $1 billion of the 10-year notes (A3/A-/A) on March 5 at a spread of Treasuries plus 125 bps.

The telecommunications company is based in Dallas.

Verizon flat

Verizon’s 4.15% notes due 2024 (Baa1/BBB+/A-) traded flat over the day at 117 bps offered, a market source said.

Verizon sold $1.25 billion of the 10-year notes on March 10 at 140 bps plus Treasuries.

The telecommunications company is based in New York City.

Bank of America stable

In other trading, Bank of America’s 4% notes due 2024 were unchanged at 133 bps offered, a market source said.

The notes (Baa2/A-/A) priced in a $2.75 billion offering on March 27 at Treasuries plus 137 bps.

Bank of America is a Charlotte, N.C.-based financial services company.

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