AbbVie prices $6 billion; Prudential, BNG sell notes; high-grade funds post inflows

By Cristal Cody

Tupelo, Miss., Sept. 13 – New corporate issuance on Thursday included $7 billion of investment-grade bonds priced over the session.

AbbVie Inc. sold $6 billion of fixed-rate senior notes in four tranches.

Prudential Financial, Inc. priced a $1 billion offering of 30-year fixed-to-floating rate junior subordinated notes.

In other issuance, Bank Nederlandse Gemeenten NV (BNG Bank) sold $2.5 billion of five-year notes.

Also on Thursday, Nestle Holdings Inc. started a roadshow for a Rule 144A and Regulation S offering of dollar-denominated senior notes, a source said. BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the bookrunners.

More than $30 billion of high-grade bonds have priced week to date, in line with syndicate sources’ forecasts of about $25 billion to as much as $40 billion of supply.

Meanwhile, for the week ended Sept. 12, Lipper US Fund Flows reported inflows of $3.22 billion for corporate investment-grade funds, compared to outflows of $297 million in the previous week.

The Markit CDX North American Investment Grade 30 index ended the day about 1 basis point tighter at a spread of 56 bps.

AbbVie prices $6 billion

AbbVie sold $6 billion of fixed-rate senior notes (Baa2/A-) in four tranches on Thursday, according to a market source.

A $1.25 billion offering of 3.375% three-year notes priced at a spread of 60 bps over Treasuries.

AbbVie sold $1.25 billion of 3.75% five-year notes with a Treasuries plus 90 bps spread.

The $1.75 billion of 4.25% 10-year notes were placed at a 138 bps spread over Treasuries.

Also, $1.75 billion of 4.875% 30-year bonds priced at a spread of 183 bps over Treasuries.

BofA Merrill Lynch, J.P. Morgan Securities, Morgan Stanley & Co. LLC and BNP Paribas Securities Corp. were the bookrunners.

AbbVie is a biopharmaceutical company based in North Chicago, Ill.

Prudential sells $1 billion

Prudential Financial priced $1 billion of 5.7% 30-year fixed-to-floating rate junior subordinated notes at par on Thursday, according to an FWP filed with the Securities and Exchange Commission.

The notes (Baa2/BBB+/BBB) will reset to a floating rate of Libor plus 266.5 bps on Sept. 15, 2028.

Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and MUFG were the bookrunners.

The financial services company is based in Newark, N.J.

BNG Bank prices $2.5 billion

BNG Bank (Aaa/AAA/AA+) priced a $2.5 billion Rule 144A and Regulation S offering of 3% five-year notes on Thursday at a spread of mid-swaps plus 11 bps, or Treasuries plus 24.1 bps, according to a market source.

The notes were initially talked to price in the mid-swaps plus 13 bps area.

Morgan Stanley, Nomura Securities International, RBC Capital Markets, LLC and Scotia Capital (USA) Inc. were the bookrunners.

The banking services company is based in The Hague, Netherlands.

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