Ingersoll-Rand, Norfolk, Ventas, Capital One, KfW, Pefco price; Rentenbank in pipeline

By Cristal Cody

Tupelo, Miss., Feb. 13 – Deal action picked up over Tuesday’s session with several corporate and SSA issuers in the primary market.

Ingersoll-Rand Global Holding Co. Ltd. came with $1.15 billion of senior notes in three parts.

Norfolk Southern Corp. priced $500 million of 30-year senior notes.

Ventas Realty LP sold $650 million of 10-year senior notes on the tight side of talk.

Capital One Financial Corp. placed $250 million of three-year floating-rate senior notes.

In SSA supply, KfW priced an upsized $1.5 billion of notes due 2019.

Nederlandse Waterschapsbank NV priced a $500 million tap of its senior floating-rate notes due Feb. 24, 2020 on top of guidance.

Also, Private Export Funding Corp. raised $300 million in an offering of three-year medium-term notes.

Coming up on Wednesday, Rentenbank plans to price a minimum $1 billion offering of two-year guaranteed notes that were initially talked to price in the mid-swaps minus 3 basis points area, a source said.

The Markit CDX North American Investment Grade 29 index softened more than 1 bp to close Tuesday at a spread of 59 bps.

Ingersoll-Rand brings notes

Ingersoll-Rand Global Holding priced $1.15 billion of senior notes (Baa2/BBB/) in three tranches on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $300 million of 2.9% three-year notes at 99.838 to yield 2.957%. The notes priced in line with talk at a spread of Treasuries plus 65 bps.

The $550 million tranche of 3.75% long 10-year notes priced at 99.751 to yield 3.779%. The notes came on the tight side of guidance with a Treasuries plus 95 bps spread.

In the final tranche, Ingersoll-Rand sold $300 million of 4.3% 30-year notes with a Treasuries plus 120 bps spread, on the tight side of talk. The bonds priced at 99.649 to yield 4.321%.

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and MUFG were the bookrunners.

The notes are guaranteed by Ingersoll-Rand plc, Ingersoll-Rand Luxembourg Finance SA, Ingersoll-Rand Lux International Holding Co. Sarl, Ingersoll-Rand Irish Holdings Unlimited Co. and Ingersoll-Rand Co.

Proceeds will be used for general corporate purposes, including the full redemption of the company’s 6.875% notes and 2.875% notes.

The diversified industrial company is based in Swords, Ireland.

Norfolk Southern prices

Norfolk Southern priced $500 million of 4.15% 30-year senior notes (Baa1/BBB+/) on Tuesday on the tight side of guidance at a spread of 105 bps over Treasuries, according to a market source and an FWP filing with the SEC.

The issue was talked to price in the Treasuries plus 105 bps to 110 bps area.

The notes priced at 99.541 to yield 4.177%.

Citigroup Global Markets and Goldman Sachs were the bookrunners.

The Norfolk, Va.-based freight railroad company will use the proceeds for general corporate purposes, including to repay some of the company’s 5.75% senior notes due April 1, 2018.

Capital One prints

Capital One Financial priced $250 million of three-year floating-rate senior notes (Baa1//A-) on Tuesday at par to yield Libor plus 42 bps, according to an FWP filing with the SEC.

Morgan Stanley & Co. LLC arranged the offering.

Capital One, a McLean, Va.-based financial services company, plans to use the proceeds for general corporate purposes.

Ventas sells $650 million

Ventas Realty sold $650 million of 4% 10-year senior notes (Baa1/BBB+/BBB+) on Tuesday at a spread of 127 bps over Treasuries, on the tight side of talk, according to a market source and an FWP filing with the SEC.

The company priced the notes (Baa1/BBB+/BBB+) at 99.233 to yield 4.094%.

The bookrunners were Jefferies & Co., BofA Merrill Lynch, MUFG and UBS Securities LLC.

Ventas, Inc. is the issue guarantor.

Proceeds will be used with cash on hand and/or borrowings under the company’s revolver to conduct a tender offer to purchase for cash up to $600 million of the company’s 4% senior notes due 2019.

The real estate investment trust for housing and health care properties is based in Chicago.

Nederlandse on top of talk

Nederlandse Waterschapsbank (Aaa/AAA/) priced a $500 million tap of its senior floating-rate notes due Feb. 24, 2020 on top of guidance Tuesday to yield Libor plus 4 bps, according to a market source.

BMO Capital Markets Corp. and NatWest Markets were the lead managers of the Rule 144A and Regulation S offering.

NWB originally sold $500 million of the notes on Oct. 18, 2017 at par to yield Libor plus 3 bps. The total outstanding now is $1 billion.

The local government funding agency is based in The Hague.

Pefco prices notes

Private Export Funding (Aaa//AA+) sold $300 million of three-year medium-term notes at a spread of Treasuries plus 38 bps on Tuesday, according to a market source.

The notes priced on the tight side of talk in the Treasuries plus 40 bps area.

HSBC Securities (USA) Inc. and J.P. Morgan Securities were the lead managers.

The New York City-based company provides loans to foreign importers and assists small businesses with financing U.S. exports.

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