Procter & Gamble, Crown Castle price billion-plus deals; Visa stable; Ford Motor Credit eases

By Cristal Cody

Tupelo, Miss., Jan. 28 – Procter & Gamble Co. and Crown Castle International Corp. tapped the high-grade primary market on Thursday, while primary action remains mostly quiet on the week.

Procter & Gamble sold $1.2 billion of notes in two tranches.

Crown Castle International brought a $1.5 billion two-part offering of split-rated senior notes (Ba1/BBB-/BBB-) on Thursday.

The Canadian primary market has seen little action over the week with one deal so far priced by North West Redwater Partnership and NWR Financing Co. Ltd. The transaction included C$850 million of senior secured bonds (A3/A-/) in two tranches.

“It’s been pretty quiet apart from that,” a source said. “The markets felt better today, so there’s a chance that somebody who has been doing watchful waiting decides that tomorrow is the day.”

Credit spreads tightened over the session, while high-grade bonds were mixed in secondary trading.

The Markit CDX North American Investment Grade 25 index firmed 3 basis points to a spread of 102 bps.

Visa Inc.’s 3.15% senior notes due 2025 were flat.

Hershey Co.’s 3.2% notes due 2025 were unchanged on the day.

Ford Motor Credit Co. LLC’s 4.134% senior notes due 2025 eased 3 bps.

Procter prices $1.2 billion

Procter & Gamble priced $1.2 billion of notes in two tranches on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $600 million of 1.85% five-year notes at 99.981 to yield 1.854%. The notes priced at a spread of Treasuries plus 45 bps, on the tight side of guidance of Treasuries plus 50 bps, plus or minus 5 bps.

Procter & Gamble priced $600 million of 2.7% 10-year notes at 99.635 to yield 2.742%. The notes priced with a spread of Treasuries plus 75 bps. The 10-year notes were talked to price at Treasuries plus 80 bps, plus or minus 5 bps.

Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the bookrunners.

The consumer products company is based in Cincinnati.

Crown raises $1.5 billion

Crown Castle International priced a $1.5 billion two-part offering of senior notes (Ba1/BBB-/BBB-) on Thursday, according to a market source and a company statement.

The company sold $600 million of 3.4% five-year notes at 99.977 and in line with guidance at a spread of 200 bps over Treasuries.

Crown Castle priced $900 million of 4.45% 10-year notes at 99.671 on top of guidance at Treasuries plus 250 bps.

The bookrunners were BofA Merrill Lynch, Citigroup, JPMorgan, Mizuho Securities USA Inc. and RBC Capital Markets LLC.

Proceeds will be used along with cash to repay in full all outstanding debt under the company’s $1 billion senior 364-day revolving credit facility and to repay $500 million of debt under its $2.5 billion senior revolving credit facility.

Crown Castle is a Houston, Texas-based operator of wireless infrastructures.

Visa steady

Visa’s 3.15% notes due 2025 were unchanged at 105 bps bid in the secondary market on Thursday, a source said.

The company sold $4 billion of the bonds (A1/A+) on Dec. 9 at Treasuries plus 97 bps.

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

Hershey unchanged

Hershey’s 3.2% notes due 2025 were flat over the day at 84 bps bid, a market source said.

Hershey sold $300 million of the notes (A1/A) on Aug. 18 at a spread of Treasuries plus 105 bps.

The chocolate, candy and confectionary product maker is based in Hershey, Pa.

Ford Motor Credit eases

Ford Motor Credit’s 4.134% notes due 2025 eased 3 bps to 235 bps bid in the secondary market, a source said.

The company sold $700 million of the notes (Baa3/BBB-/BBB-) on July 30 at a spread of Treasuries plus 187.5 bps.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based automaker Ford Motor Co.

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