Eli Lilly, Prudential, Whirlpool, CBS, Hudson, KfW, BNG, Council of Europe tap primary

By Cristal Cody

Tupelo, Miss., Feb. 20 – Investment-grade issuance remained strong on Wednesday with more than $15 billion of bonds priced in the corporate and sovereign, supranational and agency primary markets.

Eli Lilly & Co. came by with $4.5 billion of senior notes in four tranches.

Prudential Financial, Inc. sold $1 billion of medium-term notes due 2050.

Mitsubishi UFJ Lease and Finance Co. Ltd. priced an $800 million two-part offering of senior notes following a roadshow on Tuesday.

Whirlpool Corp. upsized an offering of 10-year notes to $700 million and dropped a planned add-on to an existing issue.

CBS Corp. sold $500 million of 10-year senior notes.

Hudson Pacific Properties, LP placed $350 million of 10-year senior notes.

In new SSA issuance, KfW brought $5 billion of three-year global notes to the primary market.

BNG Bank NV priced $1.5 billion of five-year notes.

The Council of Europe Development Bank also sold $1 billion of five-year senior global notes.

High-grade corporate volume totals more than $18 billion week to date.

About $20 billion to $25 billion of supply was expected by syndicate sources for the week.

The Markit CDX North American Investment Grade 31 index was flat to modestly tighter on the day at a spread of 61 basis points.

Eli Lilly prices $4.5 billion

Eli Lilly sold $4.5 billion of senior notes (A2/A+/A) in four tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company priced $1.15 billion of 3.375% 10-year notes at 99.846 to yield 3.393% and a spread of Treasuries plus 75 bps.

Eli Lilly sold $850 million of 3.875% 20-year notes at 99.90 to yield 3.882%, or Treasuries plus 90 bps.

A $1.5 billion tranche of 3.95% 30-year notes came at 99.439 to yield 3.982%. The bonds priced with a spread of 100 bps over Treasuries.

A final $1 billion tranche of 4.15% 40-year notes priced at 99.378 to yield 4.182%, or a spread of 120 bps over Treasuries.

The notes priced on the tight side of guidance.

Deutsche Bank Securities Inc., Barclays, BofA Merrill Lynch and Credit Suisse Securities (USA) LLC were the bookrunners.

Eli Lilly is an Indianapolis-based pharmaceutical company.

Prudential raises $1 billion

Prudential Financial sold $1 billion of 4.35% medium-term notes due Feb. 25, 2050 on Wednesday at 99.763 to yield 4.364%, according to an FWP filed with the SEC.

The notes (Baa1/A/) priced with a spread of 137 bps over Treasuries.

Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., Deutsche Bank Securities, HSBC Securities (USA) Inc., BofA Merrill Lynch and U.S. Bancorp Investments, Inc. were the bookrunners.

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

Mitsubishi UFJ Lease prints

Mitsubishi UFJ Lease and Finance (A3/A-/) priced an $800 million two-part offering of senior notes tighter than initial talk on Wednesday, according to a market source.

A $300 million tranche of 3.406% three-year notes priced at a spread of 95 bps over Treasuries.

The company sold $500 million of 3.559% five-year notes with a Treasuries plus 110 bps spread.

BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley were the bookrunners.

The company held a roadshow in the U.S., Asia and Europe markets on Tuesday.

The Tokyo-based company and subsidiaries provide leasing and asset finance services.

Whirlpool upsizes

Whirlpool priced an upsized $700 million of 4.75% 10-year notes (Baa3/BBB/BBB) at 98.81 to yield 4.902%, or a spread of Treasuries plus 225 basis points on Wednesday, according to a market source and an FWP filing with the SEC.

The issue, upsized from $500 million, priced on the tight side of guidance in the Treasuries plus 230 bps area, plus or minus 5 bps.

The company had planned to price an add-on to its 4.7% notes due June 1, 2022 but the offering was dropped from the final sale.

Whirlpool originally issued $300 million of the 4.7% notes at 99.85 to yield 4.719%, or Treasuries plus 300 bps, on June 1, 2012.

Citigroup Global Markets, J.P. Morgan Securities, Mizuho Securities USA Inc., Wells Fargo Securities LLC, BNP Paribas Securities, ING Financial Markets LLC and MUFG were the bookrunners.

Whirlpool is a Benton Harbor, Mich.-based appliance maker.

CBS sells bonds

CBS sold $500 million of 4.2% 10-year senior notes (Baa2/BBB/BBB) on Wednesday at a spread of 167 bps over Treasuries, according to an FWP filing with the SEC.

The notes priced at 99.033 to yield 4.316%.

Citigroup Global Markets, Deutsche Bank Securities, BofA Merrill Lynch, Wells Fargo Securities and SMBC Nikko Securities America, Inc. were the bookrunners.

The notes are guaranteed by subsidiary CBS Operations Inc.

CBS is a broadcasting company based in New York.

Hudson Pacific prices

Hudson Pacific Properties sold $350 million of 4.65% 10-year senior notes (Baa3/BBB-/BBB-) at a spread of Treasuries plus 217 bps, according to an FWP filing with the SEC on Wednesday.

The notes priced at 98.663 to yield 4.818%.

BofA Merrill Lynch, Wells Fargo Securities, U.S. Bancorp Investments, Barclays, Goldman Sachs and Morgan Stanley were the bookrunners.

The notes are guaranteed by Hudson Pacific Properties, Inc.

Hudson Pacific is a Los Angeles-based real estate investment trust focused on office and media and entertainment properties in California.

KfW in primary

KfW (Aaa/AAA/Scope: AAA) sold $5 billion of 2.5% three-year global notes on Wednesday at 99.802 to yield a spread of mid-swaps plus 2 bps, or Treasuries plus 11.1 bps, according to a market source and an FWP filing with the SEC.

The notes due Feb. 15, 2022 were guided to print in the mid-swaps plus 3 bps area with initial price talk in the mid-swaps plus 4 bps area.

Citigroup Global Markets, RBC Capital Markets, LLC and TD Securities (USA) LLC were the lead managers.

KfW is a government-backed bank based in Frankfurt.

BNG brings $1.5 billion

BNG Bank (Aaa/AAA/AA+) priced $1.5 billion of 2.625% notes due Feb. 27, 2024 on Wednesday at mid-swaps plus 16 bps, or a Treasuries plus 23.5 bps spread, according to a market source.

Price guidance firmed to the mid-swaps plus 16 bps area from initial talk in the mid-swaps plus 18 bps area.

Bookrunners of the Rule 144A and Regulation S offering included Morgan Stanley, Nomura Securities International, Inc. and RBC Capital Markets.

BNG Bank, formerly known as N.V. Bank Nederlandse Gemeenten, is a banking services company based in The Hague, Netherlands.

Council of Europe sells notes

The Council of Europe Development Bank (Aa1/AAA/AA+) priced $1 billion of 2.5% five-year senior global notes on Wednesday at mid-swaps plus 8 bps, or a spread of Treasuries plus 15.5 bps, according to a market source and an FWP filing with the SEC.

Initial price talk was in the mid-swaps plus 10 bps area.

The notes priced at 99.422 to yield 2.624%.

Barclays, Citigroup Global Markets, Deutsche Bank Securities and Goldman Sachs were the bookrunners.

The Paris-based Council of Europe Development Bank finances social projects to member states, financial institutions and local authorities for projects including public infrastructure and low-income housing.

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