Crown Castle, Progressive price; NextEra Energy remarkets; AT&T eases; credit spreads soften

By Cristal Cody

Eureka Springs, Ark., Aug. 22 – Two issuers tapped the high-grade primary market on Monday with total volume for the week expected to top out at about $5 billion.

Crown Castle International Corp. priced $700 million of five-year notes.

Progressive Corp. sold $500 million of notes due 2027 during the session.

Also on Monday, NextEra Energy Capital Holdings, Inc. announced plans to remarket its series G debentures due Sept. 1, 2018 later in the week.

Bonds were mixed in the secondary market.

AT&T Inc.’s 4.125% notes due 2026 widened 4 basis points.

The Markit CDX North American Investment Grade index eased more than 1 bp on Monday to close at a spread of 72 bps.

Crown prices $700 million

Crown Castle priced $700 million of 2.25% five-year senior notes (/BBB-/BBB-) at 99.972 to yield 2.256% on Monday, according to a press release.

Citigroup Global Markets Inc., Fifth Third Securities, Inc., BofA Merrill Lynch, MUFG and SMBC Nikko Securities America, Inc. were the bookrunners.

Crown Castle expects to use proceeds from the offering, along with cash on hand, to repay in full the 2.381% senior secured notes due 2017 issued by CC Holdings GS V LLC, Crown Castle's indirect wholly owned subsidiary, and to repay a portion of outstanding debt under the company’s senior revolving credit facility.

Houston, Texas-based Crown Castle provides shared wireless infrastructure to wireless carriers.

Progressive’s $500 million

Progressive priced $500 million of 2.45% senior notes due Jan. 15, 2027 with a spread of 92 bps over Treasuries on Monday, according to an FWP filing with the Securities and Exchange Commission.

The notes (A2/A/A/) priced at 99.965 to yield 2.454%.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. were the bookrunners.

Proceeds will be used for general corporate purposes.

Progressive is an insurance company based in Mayfield Village, Ohio.

NextEra Energy to remarket

NextEra Energy Capital Holdings announced on Monday that it plans to remarket its series G debentures due Sept. 1, 2018 on Thursday and if necessary on the following two business days.

The debentures were originally issued as part of NextEra Energy, Inc.'s corporate units on Sept. 25, 2013 in conjunction with a purchase contract agreement. The debentures currently have $500 million outstanding.

Citigroup (lead), Morgan Stanley & Co. LLC and Credit Suisse are the remarketing agents.

The debentures are guaranteed by NextEra Energy Capital Holdings' parent company, NextEra Energy, Inc.

If the remarketing is successful, the interest rate on the debentures will be reset to a rate that will enable the debentures to be remarketed at a price equal to or greater than the sum of par of the aggregate principal amount of the debentures being remarketed and the remarketing fee. The reset interest rate and the subsequent interest payment dates will be established on the date of the successful remarketing and become effective on Sept. 1. The remarketing fee will not exceed 0.25% of the aggregate principal amount of the debentures being remarketed.

Upon a successful remarketing, proceeds of the remarketing of the debentures that are components of the corporate units equal to the aggregate principal amount of the debentures will be applied to satisfy in full the obligation of the holders of the corporate units to purchase NextEra Energy common stock on Sept. 1.

Proceeds from the remarketing of any debentures that are not a component of the corporate units and whose holders elect to include some or all of those debentures in the remarketing, in an amount equal to the principal amount thereof, will be paid to those holders.

NextEra Energy is an energy company based in Juno Beach, Fla.

AT&T eases

AT&T’s 4.125% notes due 2026 (Baa1//A-) eased 4 bps in secondary trading on Monday to 150 bps bid, according to a market source.

The company priced a $900 million reopening of the bonds on May 3 at Treasuries plus 150 bps.

The notes originally were priced on Jan. 29, 2016 in a $1.5 billion offering at 195 bps over Treasuries.

AT&T is a Dallas-based telecommunications company.

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