Praxair taps U.S., Europe; Japan Finance, Oesterreichische price; McDonald’s firms; Visa flat

By Cristal Cody

Tupelo, Miss., Feb. 4 – New deals that priced on Thursday, including a dual-currency transaction from Praxair, Inc., lifted investment-grade bond issuance to about $17 billion for the week through Thursday.

Praxair sold a $275 million add-on to its 3.2% notes due Jan. 30, 2026 at a spread of 108 basis points over Treasuries.

Praxair also priced €550 million of 1.2% notes due Feb. 12, 2024 at mid-swaps plus 78 bps during the session.

The Japan Finance Organization for Municipalities tapped the market on Thursday with a $500 million sale of 2.125% five-year global medium-term notes.

In other pricing action, details emerged on Oesterreichische Kontrollbank AG’s $700 million offering of floating-rate guaranteed global notes due Aug. 10, 2017, which priced at a spread of Libor plus 18 bps.

The European Investment Bank also was in the primary market with its second global transaction of the year. The bank sold $4 billion of 1.25% three-year notes.

Credit spreads closed the day modestly softer.

The Markit CDX North American Investment Grade index eased 1 bp to a spread of 109 bps.

In the secondary market, high-grade bonds were mixed.

Visa Inc.’s senior notes (A1/A+) were stable.

McDonald’s Corp.’s 3.7% notes due 2026 firmed 1 bp on the day.

Praxair prices

Praxair priced a $275 million reopening of its 3.2% notes due Jan. 30, 2026 at 102.126 to yield 2.947% on Thursday, according to an FWP filing with the Securities and Exchange Commission.

The company sold the 10-year notes (A2/A) with a spread of 108 bps over Treasuries.

Praxair originally sold the issue on Sept. 22 in a $450 million tranche at 99.584 to yield 3.248% and a spread of 105 bps over Treasuries. The total outstanding is $725 million.

J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and Wells Fargo Securities LLC were the bookrunners.

Praxair also priced €550 million of 1.2% notes due Feb. 12, 2024 at 99.962 to yield 1.205%, or mid-swaps plus 78 bps, on Thursday, according to an FWP filing with the SEC.

Credit Suisse Securities (Europe) Ltd., Deutsche Bank AG, London Branch and BofA Merrill Lynch were the lead managers.

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

Praxair is a Danbury, Conn.-based industrial gas supplier.

Oesterreichische sells floaters

Oesterreichische Kontrollbank sold $700 million of floating-rate guaranteed global notes due Aug. 10, 2017 at par to yield a spread of Libor plus 18 bps, according to an FWP filing with the SEC.

Citigroup Global Markets Inc. and J.P. Morgan Securities plc were the lead managers.

The notes are guaranteed by the Republic of Austria.

Oesterreichische Kontrollbank is a Wien, Austria-based financial and information services provider to exporters.

EIB prices

The European Investment Bank sold $4 billion of 1.25% three-year notes at 99.812 to yield 1.309%, according to an FWP filing with the SEC.

The notes due May 15, 2019 priced with a spread of 37.3 bps over Treasuries.

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

The European Investment Bank expects to list the notes on the Luxembourg Stock Exchange.

The lending institution is based in Luxembourg.

Japan Finance in primary

Japan Finance Organization for Municipalities sold $500 million of 2.125% five-year global medium-term notes at 99.774 to yield 2.173%, according to a final terms sheet.

The series 52 bonds (A1/A+) are due Feb. 12, 2021.

The notes will be listed on the London Stock Exchange’s Regulated Market, and application has been made for the notes to be listed on the Tokyo Pro-Bond Market of the Tokyo Stock Exchange.

The Japan Finance Organization for Municipalities is a Tokyo-based funding organization for Japanese local governments.

McDonald’s firms

In the secondary market, McDonald’s 3.7% notes due 2026 firmed 1 bp on Thursday to 168 bps bid, a source said.

The company sold $1.75 billion of the notes (Baa1/BBB+/BBB+) on Dec. 2 at a spread of Treasuries plus 155 bps.

The fast food chain is based in Oak Brook, Ill.

Visa unchanged

Visa’s 3.15% notes due 2025 remain steady in secondary trading at 105 bps bid, according to a market source.

The company sold $4 billion of the bonds on Dec. 9 at Treasuries plus 97 bps.

The retail electronic payments network operator is based in San Francisco.

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