National Australia Bank, Morgan Stanley, AT&T, PNC, Kommuninvest price; credit spreads flat

By Cristal Cody

Tupelo, Miss., May 16 – Investment-grade supply continued at a strong pace for a second straight session on Tuesday.

National Australia Bank Ltd. and National Australia Bank Ltd., New York Branch sold $3.5 billion of notes in four tranches.

Morgan Stanley came with $3.25 billion of five-year global medium-term senior notes.

AT&T Inc. priced $1.5 billion of four-year floating-rate global notes.

PNC Financial Services Group, Inc. priced $750 million of 10-year senior notes on Tuesday, while subsidiary PNC Bank, NA sold $1.5 billion of senior notes in two parts.

In addition, BNP Paribas SA priced $1 billion of five-year notes.

Kommuninvest I Sverige AB brought a $500 million offering of four-year bonds.

In other corporate issuance, Caterpillar Financial Services Corp. placed a $200 million add-on to its series H medium-term floating-rate notes due Jan. 10, 2020.

Also, EPR Properties priced an upsized $450 million offering of 10-year senior notes.

The Markit CDX North American Investment Grade index closed mostly flat at a spread of 62 basis points.

National Australia Bank prices

National Australia Bank and National Australia Bank, New York Branch sold $3.5 billion of notes (A2/AA-/AA-) in four parts on Tuesday, according to a market source.

National Australia Bank priced $1 billion of three-year floating-rate notes at Libor plus 51 bps.

The bank sold $500 million of five-year floating-rate notes at Libor plus 72 bps.

National Australia Bank, New York Branch priced $1 billion of 2.125%% three-year fixed-rate notes at a spread of 70 bps over Treasuries.

The New York branch also sold $1 billion of 2.5% five-year fixed-rate notes at a Treasuries plus 78 bps spread.

BofA Merrill Lynch, J.P. Morgan Securities, LLC, National Australia Bank and TD Securities (USA) LLC were the lead managers.

National Australia Bank is based in Melbourne, while the New York branch is based in New York City.

Morgan Stanley sells $3.25 billion

Morgan Stanley priced $3.25 billion of 2.75% five-year global medium-term senior notes (A3/BBB+/A) on Tuesday at 99.791 to yield 2.795%, according to a market source and an FWP filing with the Securities and Exchange Commission.

The series I notes priced in line with guidance at a spread of 95 bps over Treasuries.

Morgan Stanley & Co. LLC was the bookrunner.

AT&T sells floaters

AT&T priced $1.5 billion of four-year floating-rate global notes (Baa1/BBB+/A-) at par to yield Libor plus 95 bps on Tuesday, according to an FWP filing with the SEC.

BofA Merrill Lynch was the bookrunner.

The notes may only be called at par if certain tax laws are changed.

Proceeds from the deal will be used for general corporate purposes.

AT&T is a Dallas-based telecommunications company.

PNC Bank brings notes

PNC Bank sold $1.5 billion of senior notes (A2/A/A+) in two tranches in a private placement offering on Tuesday, according to a market source and an FWP filing with the SEC.

The bank sold $500 million of three-year floating-rate notes at Libor plus 36 bps.

PNC Bank priced $1 billion of 2% notes due May 19, 2020 at a spread of Treasuries plus 55 bps.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC were the bookrunners.

The deal was priced under PNC Bank’s $40 billion global bank note program.

PNC Bank is a subsidiary of PNC Financial Services Group, Inc., a Pittsburgh, Penn.-based financial services holding company.

PNC Financial prices

PNC Financial Services Group priced $750 million of 3.15% 10-year senior notes on Tuesday at 99.796 to yield 3.174%, according to a market source and an FWP filing with the SEC.

The notes priced with a spread of 85 bps over Treasuries, on the tight side of guidance.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and PNC Capital Markets LLC were the bookrunners.

Proceeds from PNC Financial Services’ offering will be used for general corporate purposes.

PNC Financial Services is a Pittsburgh, Penn.-based financial services holding company.

BNP raises $1 billion

BNP Paribas priced $1 billion of 2.95% five-year notes on Tuesday at a spread of 113 bps over Treasuries, according to a market source.

The notes (A1/A-/A+) were talked to price in the Treasuries plus 115 bps area, plus or minus 2 bps.

BNP Paribas Securities Corp. was the bookrunner.

BNP Paribas is a Paris-based banking and financial services company.

Kommuninvest sells $500 million

Kommuninvest (Aaa/AAA/) priced a $500 million offering of 1.875% four-year green bonds in a Rule 144A and Regulation S deal on Tuesday at mid-swaps plus 10 bps, or a Treasuries plus 41.45 bps spread, according to a market source.

The notes due June 1, 2021 were initially talked to price in the mid-swaps plus low teens bps area.

Credit Agricole Corporate and Investment Bank, HSBC and J.P. Morgan were the lead managers.

The company held global investor calls on Monday.

Kommuninvest is an Orebro-based company that offers funding to municipalities of Sweden.

Caterpillar Financial reopens

Caterpillar Financial Services (A3/A/A) priced a $200 million reopening of its series H medium-term floating-rate notes due Jan. 10, 2020 on Tuesday at 100.538, according to an FWP filing with the SEC.

BofA Merrill Lynch was the bookrunner.

Caterpillar Financial Services originally priced $300 million of the notes on Jan. 5 at par with a coupon of Libor plus 51 bps. The total outstanding now is $500 million.

Nashville, Tenn.-based Caterpillar Financial Services is a financing arm of Caterpillar Inc.

EPR Properties upsizes

EPR Properties priced an upsized $450 million offering of 4.5% 10-year senior notes (Baa2/BBB-/BBB-) on Tuesday at 99.393 to yield 4.576%, according to a market source and an FWP filing with the SEC.

The notes priced with a spread of Treasuries plus 225 bps.

The deal was upsized from $350 million and priced on the tight side of talk.

BofA Merrill Lynch, J.P. Morgan Securities LLC and RBC Capital Markets, LLC were the bookrunners.

The notes will be guaranteed by current and future subsidiaries of the company that guarantees its revolving credit facility, term loan facility and its existing 7.7% senior notes due 2020, 5.75% senior notes due 2022, 5.25% senior notes due 2023, 4.35% senior notes due 2024, 4.5% senior notes due 2025, 4.56% senior notes due 2026 and 4.75% senior notes due 2026.

Proceeds from the deal will be used to repay the outstanding balance of the company’s revolving credit facility and for general business purposes.

EPR Properties a Kansas City, Mo.-based real estate investment trust with assets mostly in entertainment, education and recreation properties.

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