RELX eyes notes; Progressive, Analog Devices, John Deere, Store price

By Devika Patel

Knoxville, Tenn., March 9 – Friday saw a moderate amount of primary activity in the investment-grade bond market, with one new deal announced, one pricing and terms emerging on a further five deals from late Thursday.

Amsterdam provider of information and analytics for professional and business customers RELX Capital Inc. announced an offering of senior notes due 2024 while Mayfield Village, Ohio, insurance company Progressive Corp. sold $600 million of 4.2% senior notes due March 15, 2048.

As far as deals from late Thursday were concerned, Moline, Ill.-based farm equipment supplier John Deere Capital Corp. priced $1.5 billion of fixed- and floating-rate notes in three tranches; Tulsa, Okla., natural gas transmission company Transcontinental Gas Pipe Line Co. LLC sold $1 billion notes of fixed-rate senior notes in two tranches; Warsaw, Ind., Norwood, Mass., maker of circuits for electronic equipment Analog Devices, Inc. priced $750 million of senior notes in two tranches and Scottsdale, Ariz., real estate investment trust Store Capital Corp. priced $350 million of 4.5% senior notes due 2028.

RELX to sell notes due 2024

RELX Capital is planning to price an offering of senior notes due 2024, which are guaranteed by RELX plc and RELX NV.

BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and SMBC Nikko are the bookrunners. ABN Amro Inc. and RBC Capital Markets Corp. are the co-managers.

Proceeds will be used for general corporate purposes.

Progressive prices $600 million

Progressive sold $600 million of 4.2% senior notes (A2/A/A) due March 15, 2048 with a spread of Treasuries plus 110 basis points. Pricing was at 99.173 to yield 4.249%.

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

Proceeds will be used for general corporate purposes.

John Deere sells $1.5 billion

John Deere Capital priced $1.5 billion of fixed- and floating-rate notes (A2/A/A) in three tranches.

The finance company sold $500 million of three-year floating-rate notes at par to yield Libor plus 24 basis points.

The issuer also sold $400 million of 2.875% three-year fixed-rate notes at 99.932 to yield 2.899%, or 48 bps over Treasuries.

John Deere also sold $600 million of 3.45% seven-year fixed-rate notes at 99.969 to yield 3.455%, or 67 bps over Treasuries.

Barclays, Goldman Sachs & Co. and MUFG were the bookrunners.

Transcontinental’s $1 billion

Transcontinental Gas priced a $1 billion offering of senior notes in two tranches.

The company sold $400 million of 10-year 4% notes at 99.446 to yield 4.068%.

It also brought $600 million of 30-year 4.6% notes which priced at 99.276 to yield 4.645%.

Proceeds will be to repay debt, including Transco’s $250 million of 6.05% senior notes due 2018 upon their maturity on June 15, 2018, and for general corporate purposes.

Analog Devices terms

Analog Devices sold $750 million of senior notes (Baa1/BBB/) in two tranches.

The company offered $300 million of 2.85% two-year notes at 99.807 to yield 2.95% with a spread of 70 basis points over Treasuries.

Analog Devices also priced $450 million of 2.95% notes due Jan. 12, 2021 at 70 bps over Treasuries. These notes were priced at 99.572 to yield 3.11%.

BofA Merrill Lynch, MUFG, SMBC Nikko Securities America, Inc. and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used to repay a portion of the borrowings under the company’s five-year term loan.

Store Capital details

Store Capital gave details on a $350 million sale of 4.5% senior notes due 2028 which came at 99.515 with a spread of Treasuries plus 170 bps to yield 4.561%.

Goldman Sachs & Co., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Citigroup, J.P. Morgan, KeyBanc Capital Markets and SunTrust Robinson Humphrey were the bookrunners.

Proceeds will be used for property acquisitions, to repay debt under the company’s unsecured revolving credit facility, for working capital and for other general corporate purposes.

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