JPMorgan, Prologis, Air Lease, E*Trade price; Kommuninvest plans deal; Bayer in pipeline

By Cristal Cody

Tupelo, Miss., June 11 – JPMorgan Chase & Co. led deal action in the high-grade primary market on Monday with a $2.5 billion offering of notes in two tranches.

Prologis, LP also brought $700 million of guaranteed notes in two parts.

Air Lease Corp. sold $500 million of five-year senior notes.

E*Trade Financial Corp. placed a $420 million 10-year senior note issue.

PPL Electric Utilities Corp. priced $400 million of 30-year first mortgage bonds.

Florida Power & Light Co. also was marketing floating-rate notes series due June 15, 2068 at Libor plus 30 basis points during the session.

Coming up on Tuesday, Kommuninvest I Sverige AB intends to price a dollar-denominated offering of long two-year notes.

Also, Bayer AG is scheduled to hold fixed-income investor calls this week for a possible dollar-denominated Rule 144A and Regulation S deal.

In other action, Canada Pension Plan Investment Board announced it intends to price an inaugural issue of green bonds.

Looking further on the horizon, there could be a bond offering from Marvell Technology Group Ltd., which received a first-time long-term issuer rating of BBB- from Fitch Ratings and a BBB- corporate credit rating from S&P Global Ratings on Monday.

“Marvell currently has no outstanding debt, although Fitch expects the company will issue debt to partially fund the pending acquisition of Cavium Inc.,” Fitch said in a release.

The Hamilton, Bermuda-based company is a producer of computing storage communications and consumer semiconductor products.

Market sources forecast about $15 billion to $20 billion of supply over the week with heavier volume expected in the front half due to events that include President Donald Trump’s meeting on Tuesday with North Korea’s leader Kim Jong Un and central bank policy meeting announcements. Some are predicting as little as $10 billion of volume.

The Markit CDX North American Investment Grade 30 index tightened more than 1 bp to close at a spread of 65 bps.

JPMorgan prices $2.5 billion

JPMorgan Chase (A3/A-/A+) sold $2.5 billion of fixed-to-floating-rate and floating-rate notes on Monday, according to a market source.

The $1.4 billion tranche of floating-rate notes due June 18, 2022 priced at Libor plus 61 bps.

JPMorgan Chase sold $1.1 billion of 3.514% four-year notes at a spread of Treasuries plus 85 bps. The notes will convert to a floating rate of Libor plus 61 bps after the initial fixed-rate period.

J.P. Morgan Securities LLC was the bookrunner.

The financial services firm is based in New York.

Prologis sells two tranches

Prologis priced a $700 million two-tranche offering of guaranteed notes (A3/A-/) during the session, according to an FWP filing with the Securities and Exchange Commission.

The company sold $400 million of 3.875% 10-year notes at 99.32 to yield 3.957%, or a spread of Treasuries plus 100 bps.

Prologis priced $300 million of 4.375% 30-year notes at 98.782 to yield 4.449%. The notes priced with a Treasuries plus 135 bps spread.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Wells Fargo Securities LLC and Scotia Capital (USA) Inc. were the bookrunners.

Prologis is a logistics real estate company based in San Francisco.

Air Lease prices notes

Air Lease (/BBB/BBB) sold $500 million of 3.875% five-year senior notes on Monday at a spread of 125 bps over Treasuries, according to a market source.

Initial price talk was in the Treasuries plus 137.5 bps area.

BofA Merrill Lynch, Citigroup Global Markets, Goldman Sachs & Co. LLC and RBC Capital Markets, LLC were the bookrunners.

The aircraft leasing company is based in Los Angeles.

E*Trade raises $420 million

E*Trade Financial priced $420 million of 4.5% 10-year senior notes on Monday at a spread of Treasuries plus 155 bps, on the tight side of guidance, according to a market source and an FWP filing with the SEC.

The notes (Baa2/BBB/) priced at 99.912 to yield 4.511%.

Price guidance on the notes was Treasuries plus 155 bps-160 bps, while initial price talk was at the Treasuries plus 170 bps area.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities, Wells Fargo Securities and BofA Merrill Lynch were the bookrunners.

E*Trade is a New York City-based financial services company that provides online brokerage and related products and services.

PPL Electric sells bonds

PPL Electric Utilities priced $400 million of 4.15% 30-year first mortgage bonds at a spread of 108 bps over Treasuries, according to an FWP filing on Monday with the SEC.

The bonds priced at 99.439 to yield 4.183%.

BNP Paribas Securities Corp., Credit Suisse Securities, Morgan Stanley & Co. LLC and Wells Fargo Securities were the bookrunners.

The energy and utility company is based in Allentown, Pa.

Kommuninvest offers notes

Kommuninvest (Aaa/AAA/) plans to price dollar-denominated notes due Oct. 22, 2020 in a Rule 144A and Regulation S transaction on Tuesday, according to a market source.

The notes were initially talked to price in the mid-swaps plus 2 bps area.

BofA Merrill Lynch, Citigroup Global Markets, SEB Securities, Inc. and TD Securities (USA) LLC are the bookrunners.

Kommuninvest is an Orebro-based company that offers funding to municipalities of Sweden.

Bayer to hold investor calls

Bayer (Baa1/BBB/A-) plans to hold fixed-income investor calls in the back half of the week for a potential dollar-denominated Rule 144A and Regulation S multi-tranche bond offering, according to a market source on Monday.

BofA Merrill Lynch, Credit Suisse Securities, Goldman Sachs, HSBC Securities and J.P. Morgan Securities are the lead arrangers.

The investor calls will be held Wednesday through Friday.

Bayer closed Thursday on its $63 billion acquisition of Monsanto Co.

The health care and agriculture products company is based in Leverkusen, Germany.

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