Crown Castle, PNC, Worthington tap primary; FMS notes price tighter than talk; spreads flat

By Cristal Cody

Tupelo, Miss., July 25 – Investment-grade bond pricing action picked up on Tuesday with about $4.7 billion of supply brought to market in four deals during the session.

Just over $3 billion of bonds priced in two deals on Monday.

Crown Castle International Corp. led the deal action with a $1.75 billion two-part offering of fixed-rate notes.

PNC Bank, NA sold $1.25 billion of five-year fixed- and floating-rate notes.

Worthington Industries Inc. priced a $200 million sale of 15-year senior notes.

Also on Tuesday, FMS Wertmanagement placed $1.5 billion of five-year senior global benchmark notes tighter than talk.

Pricing action is expected to be limited on Wednesday with the release of the Federal Reserve’s monetary policy announcement, according to a market source.

The Markit CDX North American Investment Grade index ended the day mostly unchanged at a spread of 56 basis points.

Crown Castle sells notes

Crown Castle International (Baa3/BBB-/BBB-) sold $1.75 billion of senior notes in two parts on Tuesday, according to a market source and a company news release.

Crown Castle priced $750 million of 3.2% seven-year notes at 99.721 to yield 3.244%. The notes priced on the tight side of talk at a spread of Treasuries plus 110 bps.

The company sold $1 billion of 3.65% 10-year notes at 99.93 to yield 3.658% and a Treasuries plus 133 bps spread, on the tight side of guidance.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, Barclays, Mizuho Securities USA Inc. and RBC Capital Markets LLC were the active bookrunners.

The company held global investor calls on Monday for the deal.

Proceeds will be used along with proceeds from the company’s common stock and mandatory convertible preferred stock offerings and cash on hand to finance its planned acquisition of LTS Group Holdings LLC.

Houston-based Crown Castle provides shared wireless infrastructure to wireless carriers.

PNC brings $1.25 billion

PNC Bank placed $1.25 billion of senior notes (A2/A/A+) in two tranches on Tuesday, according to a market source.

The bank sold $500 million of five-year floating-rate notes at Libor plus 50 bps, tighter than talk in the Libor plus 53 bps area.

PNC Bank priced $750 million of 2.45% five-year fixed-rate notes at a spread of Treasuries plus 57 bps. The notes priced on the tight side of guidance in the Treasuries plus 60 bps area, plus or minus 3 bps.

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

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

Worthington sells notes

Worthington Industries sold $200 million of 4.3% 15-year senior notes (Baa3/BBB/) on Tuesday at 99.901 to yield 4.309%, according to a market source and an FWP filing with the SEC.

The notes priced with a spread of Treasuries plus 200 bps, on the tight side of guidance in the Treasuries plus 212.5 bps area, plus or minus 12.5 bps.

The bookrunners were J.P. Morgan Securities and BofA Merrill Lynch.

Proceeds will be used to repay borrowings under the company’s revolving credit facility and to repay debt under its revolving trade accounts receivable securitization facility.

The metal processing company is based in Columbus, Ohio.

FMS prices

FMS Wertmanagement priced $1.5 billion of 2% five-year senior global benchmark notes (Aaa/AAA) at a spread of mid-swaps plus 12 bps or Treasuries plus 19.25 bps on Tuesday, according to a market source.

The notes were initially talked on Monday to price in the mid-swaps plus 15 bps area and later guided to price in the mid-swaps plus 14 bps area. The deal size was expected at up to $1.9 billion.

BNP Paribas Securities Corp., Citigroup Global Markets, Goldman Sachs & Co. and RBC Capital Markets Corp. were the lead managers.

Munich-based FMS Wertmanagement is a German state-owned wind-down agency.

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