Hanover Insurance, Mizuho do deals; Kinder Morgan tightens; Apple, Procter & Gamble firm

By Aleesia Forni and Cristal Cody

New York, April 5 – The Hanover Insurance Group Inc. and Mizuho Financial issued bonds on Tuesday.

The primary’s pace slowed during the session, following the more than $12 billion of deals that entered the market at the start of the week.

Details of Mizuho’s bond were unavailable at press time.

Hanover Insurance, meantime, sold its $375 million issue of 10-year bonds via three bookrunners.

The Canadian primary market saw two energy issuers bring deals over the first two sessions of the week.

FortisBC Energy Inc. sold C$300 million of medium-term notes (A3//DBRS: A) in two tranches on Tuesday.

The company priced C$150 million of 2.58% 10-year notes at a spread of 134 bps over the interpolated Government of Canada bond curve and C$150 million of 3.67% 30-year notes at 174 bps over the Government of Canada benchmark.

On Monday, AltaGas Ltd. (/BBB/DBRS: BBB) sold C$350 million of 4.12% 10-year senior notes at 280 bps over the interpolated Government of Canada bond curve.

“These aren’t big deals, but we’re starting to see a variety of issuers, particularly energy infrastructure issuers,” a source said. “The whole sector remains in the midst of a fairly substantial capital expansion program, so they have continuous funding needs. I wouldn’t be surprised if we see more.”

The Markit CDX North American Investment Grade index closed the day 3 bps wider at a spread of 79 bps.

In the secondary market, Kinder Morgan Inc.’s 5.05% notes due 2046 traded 12 bps tighter on Tuesday.

Apple Inc.’s 3.25% notes due 2026 tightened 1 bp on the day.

Procter & Gamble Co.’s 2.7% notes due 2026 ended 1 bp better.

Hanover 10-years

The Hanover Insurance Group sold a $375 million issue of 4.5% 10-year senior notes (Baa3/BBB) on Tuesday at Treasuries plus 280 basis points, according to an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.767 to yield 4.529%.

Bookrunners are J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Lloyds Securities.

Proceeds will be used to redeem the company’s 7.5% notes due 2020 and 6.375% notes due 2021 and to pay related fees and expenses.

Located in Worcester, Mass., Hanover is a property and casualty insurance company.

Kinder Morgan better

Kinder Morgan’s 5.05% notes due 2046 tightened to 341 bps bid on Tuesday from 353 bps bid in the previous session, a market source said.

The company sold $800 million of the bonds (Baa3/BBB-/BBB-) on Feb. 23, 2015 with a spread of Treasuries plus 240 bps.

Kinder Morgan is a Houston-based pipeline operator.

Apple improves

Apple’s 3.25% bonds due 2026 improved 1 bp in secondary trading to 95 bps bid, a market source said.

The company priced a $1.25 billion add-on on March 17 at a spread of Treasuries plus 100 bps.

Apple originally sold $2 billion of the notes on Feb. 16 at 150 bps over Treasuries.

The computer and mobile communications device company is based in Cupertino, Calif.

Procter & Gamble firms

Procter & Gamble’s 2.7% notes due 2026 tightened 1 bp over the session to 59 bps bid, a market source said.

The company sold $600 million of the notes (Aa3/AA-) on Jan. 28 at 75 bps over Treasuries.

The consumer products company is based in Cincinnati.

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