High-grade volume heavy; HCA, Parker-Hannifin, TD Bank, Apache, PNC, Morgan Stanley price

By Cristal Cody

Tupelo, Miss., June 5 – Investment-grade issuers flooded the primary market with about $14 billion of new bonds on Wednesday.

HCA Inc. priced $5 billion of split-rated senior secured notes in three tranches.

Parker-Hannifin Corp. sold $2.38 billion of senior notes in three parts.

Toronto-Dominion Bank priced $1.5 billion of five-year senior medium-term notes.

Apache Corp. priced $1 billion of senior notes in two tranches.

PNC Bank, NA placed $800 million of two-year floating-rate notes.

Morgan Stanley brought $750 million of three-year global medium-term floating-rate senior notes priced with the Secured Overnight Financing Rate benchmark.

Unibail-Rodamco-Westfield SE subsidiary WEA Finance LLC came with $750 million of 10-year senior notes.

Ares Capital Corp. sold $650 million of five-year senior notes.

Allstate Corp. brought $500 million of 30-year senior notes to the primary market.

Also on Wednesday, Swedish Export Credit Corp. priced an upsized $650 million of 18-month global floating-rate notes.

In addition, the Federal Home Loan Bank System priced a $250 million add-on to its 3.25% Global notes due Nov. 16, 2028.

Following the heavy volume on Wednesday, deal volume has surpassed market forecasts with about $23 billion of investment-grade bonds priced week to date.

About $10 billion to $15 billion of issuance was expected by market sources for the week.

High-grade issuers priced about $2.5 billion of bonds on Monday and more than $6 billion of notes on Tuesday.

The Markit CDX North American Investment Grade 32 index improved about 1 basis point during the session to a spread of 64 bps.

HCA prices $5 billion

HCA priced a $5 billion public offering of split-rated senior secured notes (Baa3/BBB-/BB+) in three tranches on Wednesday, according to a market source.

The company sold $2 billion of 4.125% 10-year notes with a spread of 205 bps over Treasuries, on the tight side of guidance in the 210 bps area.

Initial price guidance was in the Treasuries plus 235 bps area.

HCA placed $1 billion of 5.125% 20-year notes at a 255 bps over Treasuries spread. The notes were initially talked to print in the Treasuries plus 280 bps area with guidance later tightened to the 260 bps spread area.

Finally, the company sold $2 billion of 5.25% 30-year notes at a Treasuries plus 270 bps spread. The notes were guided to price in the 275 bps spread area, compared to initial guidance in the Treasuries plus 290 bps area.

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

HCA is a subsidiary of HCA Healthcare, Inc., a Nashville, Tenn.-based for-profit operator of health care facilities.

Parker-Hannifin sells three tranches

Parker-Hannifin priced a $2,375,000,000 three-part offering of senior notes (Baa1/A/A-) on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

A $575 million tranche of 2.7% five-year notes priced at 99.954 to yield 2.71%, or a spread of 85 bps over Treasuries.

Parker-Hannifin sold $1 billion of 3.25% 10-year notes at 99.687 to yield 3.287%. The notes priced with a Treasuries plus 117 bps spread.

In the final tranche, the company priced $800 million of 4% 30-year notes at 98.504 to yield 4.087% and a 145 bps over Treasuries spread.

The notes priced on the tight side of guidance.

On the five-year tranche, Barclays, J.P. Morgan Securities and Wells Fargo Securities LLC were the bookrunners.

Bookrunners on the 10-year notes were Barclays, J.P. Morgan Securities and TD Securities (USA) LLC.

The bookrunners on the 30-year tranche were Barclays, J.P. Morgan Securities and HSBC Securities (USA) Inc.

Parker-Hannifin is a Cleveland-based manufacturer of motion and control technologies.

TD Bank prices $1.5 billion

Toronto-Dominion Bank priced $1.5 billion of 2.65% five-year senior medium-term notes (Aa3/A/) on Wednesday at a spread of 80 bps over Treasuries, according to a market source and an FWP filing with the SEC.

The notes priced at 99.986 to yield 2.653%.

Initial price talk was in the Treasuries plus 90 bps to 95 area.

TD Securities, Goldman Sachs & Co. LLC, J.P. Morgan Securities and Morgan Stanley & Co. LLC were the bookrunners.

The bank and financial services company is based in Toronto.

Apache raises $1 billion

Apache priced $1 billion of senior notes (Baa3/BBB/BBB) in two tranches on Wednesday, according to a market source.

The company sold $600 million of 4.25% long 10-year notes at at a spread of 215 bps over Treasuries.

Apache priced $400 million of 5.35% 30-year notes at a Treasuries plus 275 bps spread.

The notes priced tighter than initial talk.

Citigroup Global Markets, HSBC Securities, TD Securities and Wells Fargo Securities were the bookrunners.

Apache is an oil and natural gas exploration and production company based in Houston.

PNC Bank sells floaters

PNC Bank priced $800 million of floating-rate notes due June 10, 2021 (A2/A/A+) on Wednesday at Libor plus 31 bps, according to a market source.

The floaters were initially talked in the Libor plus 35 bps area.

J.P. Morgan Securities 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.

Morgan Stanley prices $750 million

Morgan Stanley (A3/BBB+/A) priced $750 million of three-year global medium-term floating-rate senior notes on Wednesday at par to yield the Secured Overnight Financing Rate plus 83 bps, according to a market source and an FWP filing with the SEC.

The notes were initially talked to print in the SOFR plus 90 bps area.

Morgan Stanley was the bookrunner.

Morgan Stanley is a New York-based financial products and services company.

WEA Finance prints

WEA Finance sold $750 million of 3.5% 10-year senior notes (A2/A/) in a Rule 144A and Regulation S offering on Wednesday at a spread of 145 bps over Treasuries, according to a market source and a press release.

Initial price talk was in the Treasuries plus 160 bps area.

BofA Securities, Citigroup Global Markets, J.P. Morgan Securities, Mizuho Securities USA LLC, RBC Capital Markets, LLC and SG Americas Securities LLC were the bookrunners.

Unibail-Rodamco-Westfield is a Paris-based commercial real estate investment company.

Ares Capital taps primary

Ares Capital sold $650 million of 4.2% five-year senior notes (Baa3/BBB-/BBB) on Wednesday at 99.808 to yield 4.243%, according to 497AD filings with the SEC.

The notes priced with a spread of Treasuries plus 237.5 bps.

Initial price thoughts were in the 250 bps over Treasuries spread area.

BofA Securities, J.P. Morgan Securities, Wells Fargo Securities, BMO Capital Markets Corp., Mizuho Securities, MUFG, SMBC Nikko Securities America, Inc. and SunTrust Robinson Humphrey Inc. were the bookrunners.

The New York specialty finance company plans to use the proceeds to repay debt.

Allstate sells $500 million notes

Allstate sold $500 million of 3.85% senior notes due Aug. 10, 2049 (A3/A-/) on Wednesday at a spread of 125 bps over Treasuries, according to an FWP filing with the SEC.

The notes priced at 99.303 to yield 3.889%.

BofA Securities, Goldman Sachs, J.P. Morgan Securities and Morgan Stanley were the bookrunners.

Allstate is a Northbrook, Ill.-based insurance company.

Swedish Export upsizes

Swedish Export Credit priced an upsized $650 million of global floating-rate notes due Dec. 14, 2020 (Aa1/AA+/) at par to yield Libor plus 5 bps on Wednesday, according to a market source and an FWP filing with the SEC.

The notes were initially talked to price in the Libor plus 5 bps area.

The deal was upsized from $500 million.

BNP Paribas Securities Corp., Citigroup Global Markets and Morgan Stanley were the bookrunners.

Swedish Export Credit is a Stockholm-based government-owned financial services company for the Swedish export industry.

FHLBanks reopens notes

The Federal Home Loan Bank System priced a $250 million add-on to its 3.25% Global notes due Nov. 16, 2028 on Wednesday at 107.978 to yield 2.305%, according to a press release.

The deal had a bid-to-cover ratio of 2.74.

The reopening was priced via a Dutch auction with the winning bidder not announced.

FHLBank System previously issued $1.25 billion of the 3.25% notes at 99.005 to yield 3.386% and a spread of Treasuries plus 28 basis points on Nov. 15, 2018 and priced $250 million more of the notes on Dec. 3, 2018 at 99.493672 to yield 3.31%. The total outstanding is now $1.75 billion.

The Federal Home Loan Bank System also plans to price a new Global note due July 7, 2021 on Thursday.

The lead managers for the upcoming new issue are Barclays, Citigroup Global Markets and TD Securities.

FHLBank System is a Washington, D.C.-based government-sponsored enterprise that provides member financial institutions funding support for mortgage lending and community investment.

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