Principal Financial, Brixmor tap primary market; Bristol-Myers, Fidelity, T-Mobile deals eyed

By Cristal Cody

Tupelo, Miss., May 7 – In new high-grade issuance on Tuesday, Principal Financial Group, Inc. priced $500 million of 10-year senior notes with a special mandatory call if the company does not complete an acquisition of Wells Fargo Bank, NA's Institutional Retirement & Trust business unit.

Also on Tuesday, Brixmor Operating Partnership LP sold $400 million of 10-year senior notes.

In other deal action during the session, Capital Power Corp. announced that it priced C$150 million of 5.75% cumulative minimum rate reset preference shares to help fund its acquisition of Goreway Power Station Holdings Inc.

Meanwhile, Bristol-Myers Squibb Co. was being eyed to tap the high-grade primary market following holidays in Europe and Japan that kept some investors out in the previous session.

The company is anticipated to price a Rule 144A and Regulation S offering of notes in 1.5-, two-, three-, five-, seven-, 10-, 20- and 30-year tranches, according to market sources.

Also on Tuesday, Fidelity National Information Services, Inc. kicked off a roadshow and fixed income investor calls for a multi-currency bond deal to help finance its acquisition of Worldpay Inc. The roadshow will continue through Friday.

T-Mobile U.S. Inc.’s roadshow for an upcoming bond offering to fund its acquisition of Sprint Corp. also continues through Wednesday in the U.S. and European markets.

About $40 billion to $45 billion of new issuance is forecast by syndicate sources for the week.

In other action on Tuesday, AvalonBay Communities, Inc. held fixed income investor calls for a possible offering, a market source said. Barclays, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the arrangers. The Arlington, Va.-based manager and developer of apartment communities was last reported in the primary market on March 15, 2018 with a $300 million offering of 4.35% medium-term notes due April 15, 2048.

In addition, St. Louis-based Reinsurance Group of America, Inc., a life and health insurance holding company, concluded a two-day round of investor calls on Tuesday, a source said. BofA Merrill Lynch, JPMorgan, RBC Capital Markets, LLC and Wells Fargo are the arrangers.

On Monday, utilities including American Water Capital Corp., Public Service Electric & Gas Co. and Consolidated Edison Co. of New York, Inc. priced $2.55 billion of notes in the high-grade market.

Come Tuesday, the new issues were mostly better in secondary trading with ConEd’s $700 million of 4.125% debentures due May 15, 2049 (A3/A-/A-) earlier quoted about 1 basis point tighter than issuance, a source said. The debentures priced with a spread of Treasuries plus 122 bps.

The Markit CDX North American Investment Grade 32 index closed the day about 2 bps wider at a spread of 61 bps.

Principal sells $500 million

Principal Financial Group priced $500 million of 3.7% 10-year senior notes (Baa1/A-/) on Tuesday at a spread of 130 bps over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at 99.602 to yield 3.748%.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BofA Merrill Lynch, BNP Paribas Securities Corp., Morgan Stanley & Co. LLC, RBC and U.S. Bancorp Investments Inc. were the bookrunners.

The notes are guaranteed by Principal Financial Services, Inc.

The retirement savings, investment and insurance products company is based in Des Moines.

Brixmor prices $400 million

Brixmor Operating Partnership sold $400 million of 4.125% 10-year senior notes on Tuesday at 99.804 to yield 4.149%, according to an FWP filing with the SEC.

The notes (Baa3/BBB-/BBB-) priced with a spread of 170 bps over Treasuries.

The bookrunners were JPMorgan, Citigroup, Mizuho Securities USA Inc., RBC, Barclays, BMO Capital Markets Corp., Jefferies LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments.

New York City-based Brixmor is the operating partnership through which Brixmor Property Group Inc. operates and holds real estate assets.

Capital Power sells preferreds

Capital Power announced on Tuesday that it priced C$150 million of cumulative minimum rate reset preference shares with a 5.75% annual dividend for the initial period ending June 30, 2024.

The company sold 6 million shares of the series 11 preferred stock (/P-3/DBRS: Pfd-3 (low)) at C$25 per share.

TD Securities Inc. and RBC were the lead managers.

The deal has an over-allotment option of C$50 million, or 2 million shares.

The dividend rate will reset on June 30, 2024 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield and 415 bps, or in any event at a rate not less than 5.75%.

Capital Power is an Edmonton, Alta.-based power producer.

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