Broadcom, BMW, Credit Suisse, Hewlett price; BAE, Prudential, CDP in deal pipeline

By Cristal Cody

Tupelo, Miss., April 6 – Investment-grade issuers priced $19.63 billion of bonds over Monday’s session.

Broadcom Inc. led pricing action with a $4.5 billion two-part offering of senior notes.

BMW US Capital, LLC brought $4 billion of senior notes in three tranches to the primary market.

Credit Suisse AG, New York Branch priced $3 billion of senior notes in two parts.

Hewlett Packard Enterprise Co. sold $2.25 billion of senior notes in two tranches, dropping a seven-year tranche.

Caterpillar Inc. raised $2 billion in a two-part offering of senior notes.

PacifiCorp sold $1 billion of first mortgage bonds in two tranches.

Mitsubishi UFJ Lease and Finance Co. Ltd. priced $800 million of senior notes in two parts.

Ally Financial Inc. priced $750 million of five-year senior notes.

Burlington Northern Santa Fe, LLC sold $575 million of senior debentures due Feb. 15, 2051.

Analog Devices, Inc. placed $400 million of five-year green senior notes.

Also, Tucson Electric Power Co. sold $350 million of 30-year senior notes.

In other action on Monday, BAE Systems plc held fixed income investor calls for a Rule 144A and Regulation S dollar-denominated offering of senior notes.

Also, Prudential plc is holding fixed income investor calls Monday and Tuesday for an offering of 10-year senior notes, a source said.

The company announced the registered offering on Monday.

Coming up on Tuesday, CDP Financial Inc. plans to price a Rule 144A and Regulation S dollar-denominated offering of three-year guaranteed senior notes.

Also on Tuesday, Ontario Teachers’ Finance Trust is expected to price a Rule 144A and Regulation S dollar-denominated offering of five-year senior notes.

Monday’s supply follows two back-to-back record weeks of deal volume.

Issuance has been heavy in the wake of the coronavirus pandemic and federal stimulus measures to bolster the economy, including corporate primary and secondary bond purchases.

The Federal Reserve announced additional coronavirus-related stimulus measures on Monday, including plans to establish a facility to provide term financing backed by the Small Business Administration’s paycheck protection program.

The Markit CDX North American Investment Grade 33 index tightened about 10 basis points from Friday to close at a spread of 119.35 bps.

The iShares iBoxx Investment Grade Corporate Bond ETF finished up 1.97% on the day.

Broadcom prices $4.5 billion

Broadcom priced $4.5 billion of senior notes (Baa3/BBB-/BBB-) in two tranches in a Rule 144A and Regulation S deal on Monday, according to a market source and new release.

A $2.25 billion offering of 4.7% five-year notes priced at a spread of Treasuries plus 425 bps.

Initial talk was in the 475 bps over Treasuries area.

Broadcom sold $2.25 billion of 5% 10-year notes at a Treasuries plus 437.5 bps spread.

The 10-year notes were talked at the 487.5 bps spread area.

Barclays, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, MUFG and Wells Fargo Securities LLC were the lead managers.

Broadcom is an Irvine, Calif. maker of chips for broadcasting.

BMW US Capital prints $4 billion

BMW US Capital priced $4 billion of senior notes (A1/A+) in three tranches on Monday, according to a market source.

A $1.5 billion tranche of 3.8% three-year notes priced at a spread of Treasuries plus 350 bps.

BMW sold $1.5 billion of 3.9% five-year notes at a spread of 350 bps over Treasuries.

Also, $1 billion of 4.15% 10-year notes priced at a spread of 350 bps over Treasuries.

All three tranches were initially talked to print at the Treasuries plus 387.5 bps spread area.

BofA Securities, Inc., Citigroup, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo were the bookrunners.

Woodcliff Lake, N.J.-based BMW US Capital is the U.S. financing arm for the BMW German auto manufacturer.

Credit Suisse prices $3 billion

Credit Suisse, New York Branch sold $3 billion of senior notes (A1/A+) in two parts on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $1.5 billion of 2.8% two-year notes at 99.996 to yield 2.802% and a spread of Treasuries plus 255 bps.

A $1.5 billion tranche of 2.95% five-year notes priced at 99.829 to yield 2.987%, or a 255 bps over Treasuries spread.

Both tranches were talked at the Treasuries plus 300 bps area.

Credit Suisse Securities (USA) LLC was the bookrunner.

The New York branch is part of Zurich-based financial services company Credit Suisse Group AG.

Hewlett Packard sells two tranches

Hewlett Packard Enterprise sold $2.25 billion of senior notes (Baa2/BBB/BBB+) in two tranches on Monday, according to a market source.

A $1.25 billion tranche of 4.45% notes due Oct. 2, 2023 priced at a spread of Treasuries plus 412.5 bps, compared to initial guidance in the Treasuries plus 462.5 bps area.

A $1 billion tranche of 4.65% notes due Oct. 1, 2024 priced at a spread of Treasuries plus 425 bps.

The four-year notes were talked to price at the 475 bps spread area.

A tranche of seven-year notes that was initially talked to price at the 475 bps spread area was dropped from the final offering.

BNP Paribas Securities Corp., Citigroup and J.P. Morgan were the bookrunners.

The technology company is based in Palo Alto, Calif.

Caterpillar raises $2 billion

Caterpillar priced $2 billion of senior notes (A3/A/A) in two tranches on Monday, according to a market source and an FWP filing.

An $800 million tranche of 2.6% 10-year notes priced at 99.459 to yield 2.662%, or a spread of Treasuries plus 200 bps.

The company also priced $1.2 billion of 3.25% 30-year notes at 99.601 to yield 3.271% and a 200 bps over Treasuries spread.

Both tranches were initially talked to print in the 245 bps spread area.

BofA Securities, Citigroup, J.P. Morgan, MUFG and SG Americas Securities LLC were the bookrunners.

Proceeds are expected to be used for general corporate purposes, including debt repayment.

Deerfield, Ill.-based Caterpillar manufactures construction and mining equipment, diesel and natural gas engines and other industry equipment.

Nashville, Tenn.-based Caterpillar Financial Services is a financing arm of Caterpillar Inc.

PacifiCorp prices $1 billion

PacifiCorp sold $1 billion of first mortgage bonds (A1/A+) in two tranches on Monday, according to a market source and an FWP filing.

A $400 million tranche of 2.7% bonds due Sept. 15, 2030 priced at 99.82 to yield 2.72% and a spread of Treasuries plus 205 bps.

The company sold $600 million of 3.3% bonds due March 15, 2051 at 99.176 to yield 3.343% and with a 205 bps over Treasuries spread.

Both tranches were talked to print in the Treasuries plus 250 bps area.

BMO Capital Markets Corp., MUFG Securities Americas Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., CIBC World Markets Corp., KeyBanc Capital Markets Inc., and Scotia Capital (USA) Inc. were the bookrunners.

The regulated electric company and subsidiary of Berkshire Hathaway Energy Co. is based in Portland, Ore.

Mitsubishi brings two tranches

Mitsubishi UFJ Lease and Finance (A3/A-) priced $800 million of senior notes in two parts on Monday, according to a market source.

A $450 million tranche of 3.637% five-year notes priced at a spread of 320 bps over Treasuries.

The five-year issue was talked to price in the Treasuries plus 325 bps area.

The company sold $350 million of 3.967% 10-year notes with a Treasuries plus 330 bps spread.

Initial price talk was at the 337.5 bps spread area.

BofA Securities, Citigroup, J.P. Morgan and Morgan Stanley were the bookrunners.

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

Burlington Northern sells notes

Burlington Northern Santa Fe sold $575 million of 3.05% senior debentures due Feb. 15, 2051 (A3/A+) at 99.171 to yield 3.092%, or a spread of 180 bps over Treasuries, on Monday, according to a market source and an FWP filing.

Initial talk was in the Treasuries plus 210 bps area.

J.P. Morgan, Morgan Stanley, Wells Fargo, Barclays, BofA Securities, Citigroup and Goldman Sachs were the bookrunners.

The holding company for railroad transportation subsidiaries is based in Fort Worth, Texas.

Tucson Electric in primary

Tucson Electric Power sold $350 million of 4% senior notes due June 15, 2050 (A3/A-) on Monday at 99.138 to yield 4.05%, or a spread of 275 bps over Treasuries, according to a market source and an FWP filing.

Initial price talk was in the Treasuries plus 300 bps area.

BBVA Securities Inc., BNY Mellon Capital Markets, LLC, SunTrust Robinson Humphrey, Inc. and Wells Fargo were the bookrunners.

The electric utility is based in Tucson, Ariz.

Analog Devices prices

Analog Devices sold $400 million of 2.95% five-year green senior notes (Baa1/BBB) on Monday at a Treasuries plus 262.5 bps spread, according to a market source and an FWP filing.

The notes were talked to price at the Treasuries plus 325 bps area.

The issue was sold at 99.496 to yield 3.06%.

J.P. Morgan, Citigroup, Credit Suisse Securities and Morgan Stanley were the bookrunners.

The company plans to use proceeds to finance or refinance new or existing renewable energy, green building, sustainable water, pollution prevention, clean transportation and other environmental projects.

The maker of circuits for electronic equipment is based in Norwood, Mass.

Ally Financial sells five-year notes

Ally Financial priced $750 million of 5.8% five-year senior notes (Ba1/BBB-/BBB-) on Monday at a spread of Treasuries plus 562.5 bps, according to a market source.

Initial guidance was in the Treasuries plus 600 bps area.

Citigroup, Deutsche Bank Securities Inc., J.P. Morgan and RBC Capital Markets, LLC were the bookrunners.

Ally is a financial services company based in Detroit.

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