Rogers Communications, ConEd, Public Service, Duke Energy tap market; J.B. Hunt notes firm

By Cristal Cody

Tupelo, Miss., March 3 - Investment-grade issuers priced more than $5 billion of bonds on Monday with the week expected to see about $25 billion of total issuance, according to informed sources.

"There were a couple of deals that didn't get done with the volatility," one informed source said. "So with those deals that didn't go today, coupled with deals that are looked [at] tomorrow, we expect a pretty active day tomorrow as long as nothing new blows up overnight in the Ukraine and Russia."

Rogers Communications Inc. sold $750 million of 5% senior notes due 2044 in the U.S. primary market, as well as a C$1.25 billion three-part offering of senior notes in the Canadian high-grade market on Monday, according to the company and an informed source.

J.B. Hunt Transport Services, Inc. came by with a $500 million sale of two tranches of senior notes.

The company sold $250 million of 2.4% notes due March 15, 2019 and a $250 million tranche of 3.85% notes due March 15, 2024.

Utilities also kept the market busy with three deals.

Consolidated Edison Co. of New York, Inc. sold $850 million of 4.45% 30-year debentures, while Duke Energy Progress Inc. priced $650 million in a two-part offering of first mortgage bonds, and Public Service Co. of Colorado brought $300 million of 4.3% 30-year first mortgage bonds.

Daimler Finance NA also was in the market with a $2.15 billion three-part offering of notes. Final pricing details were not available by press time.

Investment-grade bond spreads headed out mostly softer on the day, with the exception of J.B. Hunt's two tranches, which tightened 3 basis points in aftermarket trading, according to sources.

The Markit CDX North American Investment Grade series 21 index eased 1 bp to a spread of 65 bps.

In the secondary market, Consolidated Edison Co. of New York's 4.45% debentures due 2044 traded wrapped around issuance, a source said.

Rogers Communications' 5% notes due 2044 headed out flat.

Duke Energy's 4.375% bonds due 2044 were unchanged from issuance, a trader said.

Public Service Co. of Colorado's 4.3% bonds due 2044 firmed 1 bp in aftermarket trading, according to a trader.

ConEd prices $850 million

Consolidated Edison Co. of New York sold $850 million of 4.45% debentures at 99.916 to yield 4.455%, according to an FWP filing with the Securities and Exchange Commission on Monday.

The series 2014A debentures due March 15, 2044 (A1/A-A-) priced with a spread of Treasuries plus 90 bps.

Barclays, BofA Merrill Lynch, Morgan Stanley & Co., LLC, Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC were the lead managers.

Proceeds will be used for general corporate purposes, including repaying short-term variable-rate debt.

In the secondary market, the debentures traded mostly flat at 90 bps bid, 88 bps offered, a trader said.

The electric company is a subsidiary of New York City-based Consolidated Edison, Inc.

Duke Energy mortgage bonds

Duke Energy Progress raised $650 million in a two-part offering of first mortgage bonds (Aa2/A/A+), according to an FWP filing with the SEC on Monday.

The company priced $250 million of floating-rate first mortgage bonds due March 6, 2017 at par to yield Libor plus 20 bps.

Duke Energy also sold $400 million of 4.375% first mortgage bonds due March 30, 2044 at 99.98 to yield 4.376%. The long bonds priced with a spread of 82 bps over Treasuries.

Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Mitsubishi UFJ Securities (USA), Inc., Morgan Stanley and SunTrust Robinson Humphrey Inc. were the bookrunners.

Duke Energy Progress plans to use the proceeds to repay short-term debt under a money-pool borrowing arrangement with parent company Duke Energy Corp. and for general corporate purposes.

In aftermarket trading, Duke Energy's 4.375% bonds due 2044 were flat at 82 bps bid, 80 bps offered, a trader said.

Raleigh, N.C.-based Duke Energy Progress generates and distributes electricity in North Carolina and South Carolina.

J.B. Hunt two-part deal

J.B. Hunt Transport Services priced $500 million in two tranches of senior notes (Baa1/BBB+/), according to an FWP filing with the SEC.

The company sold $250 million of 2.4% notes due March 15, 2019 at 99.957 to yield 2.409%, or a spread of Treasuries plus 95 bps.

In the second tranche, J.B. Hunt sold $250 million of 3.85% notes due March 15, 2024 at 99.9 to yield 3.862%. The 10-year notes priced with a spread of Treasuries plus 125 bps.

J.P. Morgan Securities LLC, Goldman, Sachs & Co. and Morgan Stanley were the bookrunners.

The issues are fully and unconditionally guaranteed on a senior basis by J.B. Hunt Transport, Inc.

Proceeds will be used to repay outstanding debt and for general corporate purposes.

In the secondary market, J.B. Hunt's 2.4% notes due 2019 tightened to 92 bps bid, 89 bps offered, a trader said.

The 3.85% notes due 2024 firmed to 122 bps bid, 121 bps offered.

J.B. Hunt is a Lowell, Ark.-based full truckload transportation and delivery service company.

Public Service's $300 million

Public Service Co. of Colorado sold $300 million of 4.3% 30-year first mortgage bonds at 99.631 to yield 4.322% on Monday, according to a syndicate source and an FWP filing with the SEC.

The series No. 27 bonds due March 15, 2044 (A1/A/A+) priced with a spread of Treasuries plus 77 bps.

BNP Paribas Securities Corp., BofA Merrill Lynch, Scotia Capital and U.S. Bancorp Investments, Inc. were the bookrunners.

Proceeds will be used to fund the maturity of $275 million of 5.5% first mortgage bonds on April 1 and for general corporate purposes, including the repayment of short-term debt and the funding of a capital expenditure program.

Going out the door, the 4.3% bonds due 2044 firmed to 76 bps bid, 74 bps offered in secondary trading, a trader said.

The Denver-based electric utility is a subsidiary of Xcel Energy Inc.

Rogers brings $750 million

Rogers Communications sold $750 million of 5% senior notes due 2044 at 103.21 to yield 3.55% in a U.S. dollar-denominated offering on Monday, according to an FWP filing with the SEC.

The bonds are due March 15, 2044 (Baa1/BBB+/BBB+) and priced with a spread of Treasuries plus 150 bps.

Citigroup Global Markets Inc., BofA Merrill Lynch, RBC Capital Markets, LLC and JPMorgan were the bookrunners.

The notes are guaranteed by Rogers Communications Partnership.

Proceeds will be used to fund a portion of the $3.29 billion cash investment required to acquire 20-year wireless spectrum licenses in rural and urban location across Canada, 20% of which is due on Wednesday and the balance on April 2. The balance will be funded with additional debt and available cash on hand.

In the secondary market, Rogers Communications' 5% notes due 2044 traded flat at 150 bps bid, 149 bps offered, a trader said.

Rogers Communications is a Toronto-based communications and media company.

Bank/brokerage CDS all higher

Investment-grade bank and brokerage CDS prices were all higher, according to a market source.

Bank of America Corp.'s CDS costs eased 2 bps to 69 bps bid, 72 bps offered. Citigroup Inc.'s CDS costs rose 3 bps to 81 bps bid, 84 bps offered. JPMorgan Chase & Co.'s CDS costs eased 2 bps to 62 bps bid, 65 bps offered. Wells Fargo & Co.'s CDS costs rose 2 bps to 42 bps bid, 45 bps offered.

Merrill Lynch's CDS costs eased 2 bps to 73 bps bid, 76 bps offered. Morgan Stanley's CDS costs widened 4 bps to 90 bps bid, 93 bps offered. Goldman Sachs Group, Inc.'s CDS costs eased 3 bps to 90 bps bid, 93 bps offered.

Paul Deckelman contributed to this review.

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