High-grade supply reaches $5 billion; Enterprise Products, Honda, Ventas, Eversource price

By Cristal Cody

Tupelo, Miss., June 24 – Investment-grade corporate issuers priced $5 billion of registered bonds over Monday’s session.

Enterprise Products Operating LLC tapped the primary market with a $2.5 billion two-part offering of guaranteed fixed-rate senior notes.

American Honda Finance Corp. brought $1.75 billion of medium-term notes in three tranches on Monday.

Ventas Realty LP priced $450 million of long five-year senior notes.

Public Service Co. of New Hampshire, doing business as Eversource Energy, sold $300 million of 30-year first mortgage bonds.

In other deal activity, Dominion Energy, Inc. remarketed $1.4 billion of junior subordinated notes due Aug. 15, 2021 and Aug. 15, 2024 on Monday.

About $15 billion of high-grade supply is forecast for this week with the chance of opportunistic issuers strong, depending on market tone and global trade developments, syndicate sources said.

Issuance is expected to slow headed into July as companies enter second quarter earnings blackout reporting periods, market sources report.

Deal volume was light last week with about $10 billion of supply, short of the $15 billion to $20 billion of issuance expected on average.

The final week of June has seen a historical average of $12 billion of investment-grade corporate issuance, according to a BofA Merrill Lynch research note released on Monday.

The Markit CDX North American Investment Grade 32 index headed out mostly unchanged on Monday at a spread of 55 basis points.

Enterprise Products sells $2.5 billion

Enterprise Products Operating led the day’s deal action with a $2.5 billion two-part offering of guaranteed fixed-rate senior notes (Baa1/BBB+/BBB+), according to an FWP filing with the Securities and Exchange Commission.

A $1.25 billion tranche of 3.125% 10-year notes priced at 99.955 to yield 3.13%. The notes were placed with a spread of 110 bps over Treasuries.

The company sold $1.25 billion of 4.2% notes due 2050 at 99.792 to yield 4.212%, or a Treasuries plus 165 bps spread.

The notes are unconditionally guaranteed by parent company Enterprise Products Partners LP.

Bookrunners were J.P. Morgan Securities LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC, TD Securities (USA) LLC, Barclays, BBVA Securities Inc., Deutsche Bank Securities Inc., MUFG, Scotia Capital (USA) Inc. and SG Americas Securities, LLC.

The midstream energy services provider is based in Houston.

American Honda prices $1.75 billion

American Honda Finance priced a $1.75 billion three-tranche offering of medium-term notes (A2/A/) on Monday, according to a market source.

A $500 million tranche of three-year floating-rate notes priced at Libor plus 54 basis points.

American Honda sold $750 million of 2.2% three-year fixed-rate notes at a spread of Treasuries plus 55 bps.

In the final tranche, $500 million of 2.4% five-year notes were priced at a Treasuries plus 70 bps spread.

BofA Securities, Citigroup Global Markets Inc., J.P. Morgan Securities and MUFG were the bookrunners.

American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.

Ventas Realty brings notes

Ventas Realty sold $450 million of 2.65% senior notes due Jan. 15, 2025 at 99.454 to yield 2.757%, according to an FWP filing.

The notes (Baa1/BBB+/BBB+) priced with a spread of 100 bps over Treasuries.

BofA Securities, Jefferies LLC and Wells Fargo Securities LLC were the bookrunners.

Ventas, Inc. will fully and unconditionally guarantee the notes.

The real estate investment trust for housing and health care properties is based in Chicago.

Eversource Energy in primary

Public Service of New Hampshire, doing business as Eversource Energy, sold $300 million of 3.6% first mortgage bonds due July 1, 2049 on Monday at a spread of 105 bps over Treasuries, according to an FWP filing.

The notes (A1/AA-/A+) priced at 99.763 to yield 3.613%.

BNY Mellon Capital Markets, LLC, J.P. Morgan Securities, PNC Capital Markets LLC, RBC Capital Markets LLC and U.S. Bancorp Investments, Inc. were the bookrunners.

Public Service Co. of New Hampshire is a Manchester, N.H.-based electric utility and subsidiary of Eversource Energy.

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