3M, Roper, Boston Properties, Consumers Energy, Juniper among issuers; credit spreads tighten

By Cristal Cody

Tupelo, Miss., Aug. 19 – 3M Co. led pricing action in the high-grade bond market on Monday with a $3.25 billion four-part offering of notes.

The session saw a total of nearly $7 billion of bonds price.

Roper Technologies, Inc. tapped the primary market with a $1.2 billion two-tranche sale of senior notes.

Boston Properties LP sold $700 million of long 10-year senior notes.

Consumers Energy Co. brought $550 million of 31-year first mortgage bonds.

Juniper Networks, Inc. priced $500 million of 10-year senior notes.

Puget Sound Energy, Inc. sold $450 million of 30-year senior notes.

In addition, Federal Realty Investment Trust placed a $100 million add-on to its 3.2% notes due June 15, 2029 during the session.

Supply is expected to slow over the final two weeks of August before issuance is predicted to ramp up significantly in September, sources report.

Only about $10 billion of deal volume is being forecast for the week, according to market sources.

High-grade issuers priced more than $23 billion of bonds last week, just below forecasts of about $25 billion to $30 billion of issuance.

Market sources are expected to keep an eye on retailer earnings reports due this week, including from Home Depot Inc. on Tuesday and Lowe’s Cos. Inc. and Target Corp. on Wednesday.

Also, market participants will be focusing on Wednesday’s release of the minutes from the Federal Reserve’s July meeting when rates were lowered and the upcoming Federal Reserve Bank of Kansas City’s annual economic policy symposium in Jackson Hole, Wyo., that starts Thursday.

The Markit CDX North American Investment Grade 32 index closed the day 4 basis points tighter at a spread of 54 bps.

3M prices $3.25 billion

3M priced $3.25 billion of notes (A1/AA-/) in four tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.

The company sold $500 million of 1.75% notes due Feb. 14, 2023 at 99.619 to yield 1.864%, or a spread of Treasuries plus 37.5 bps.

A $750 million tranche of 2% notes due 2025 priced at 99.399 to yield 2.117% and a spread of 65 bps over Treasuries.

3M sold $1 billion of 2.375% 10-year notes at 98.918 to yield 2.498%. The notes priced with a Treasuries plus 90 bps spread.

The company priced $1 billion of 3.25% 30-year notes at a spread of 130 bps over Treasuries. The bonds priced at 97.69 to yield 3.373%.

Goldman Sachs & Co. LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the bookrunners.

3M is a Maplewood, Minn.-based manufacturer of products including Post-it notes and Scotch Office tape.

Roper prices $1.2 billion

Roper Technologies priced $1.2 billion of senior notes (Baa2/BBB+/) in two tranches better than talk on Monday, according to a market source and an FWP filing with the SEC.

Roper priced $500 million of 2.35% five-year notes at 99.815 to yield 2.389%, or a spread of Treasuries plus 92 basis points. The notes were initially talked to price with a spread in the 115 bps area.

A $700 million tranche of 2.95% 10-year notes priced at 99.783 to yield 2.975%. The notes were sold with a Treasuries plus 137 bps spread. Initial price talk was in the Treasuries plus 160 bps area.

BofA Securities, J.P. Morgan Securities and Wells Fargo Securities were the bookrunners.

Roper Technologies is a Sarasota, Fla.-based diversified technology company.

Boston Properties sells notes

Boston Properties sold $700 million of 2.9% senior notes due March 15, 2030 on Monday at 99.954 to yield 2.905%, according to an FWP filing with the SEC.

The notes (Baa1/A-/BBB+) priced with a spread of 130 bps over Treasuries.

Bookrunners were BofA Securities, Citigroup Global Markets, Deutsche Bank Securities, J.P. Morgan Securities, Wells Fargo Securities, BNY Mellon Capital Markets, LLC, Jefferies LLC, Morgan Stanley, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.

Boston-based Boston Properties is the operating subsidiary of real estate investment trust Boston Properties, Inc.

Consumers Energy brings mortgage bonds

Consumers Energy sold $550 million of 3.1% first mortgage bonds due Aug. 15, 2050 at a spread of Treasuries plus 105 bps on Monday, according to an FWP filing with the SEC.

The bonds (Aa3/A/A+) priced at 99.291 to yield 3.136%.

BNP Paribas Securities Corp., Citigroup Global Markets, J.P. Morgan Securities, KeyBanc Capital Markets LLC, Mizuho Securities USA Inc., MUFG and SMBC Nikko Securities America Inc. were the bookrunners.

Consumers Energy is an electric and gas utility based in Jackson, Miss.

Juniper Networks sells $500 million

Juniper Networks priced $500 million of 3.75% 10-year senior notes (Baa2/BBB/) on Monday at a spread of 215 bps over Treasuries, according to a market source and an FWP filing with the SEC.

Initial price talk was in the Treasuries plus 237.5 bps area.

The notes priced at 99.951 to yield 3.756%.

Bookrunners were Barclays, BofA Securities, Citigroup Global Markets, Credit Suisse Securities, HSBC Securities (USA) Inc., J.P. Morgan Securities, Mizuho Securities and Wells Fargo Securities.

The network designer and developer is based in Sunnyvale, Calif.

Puget Sound Energy sells notes

Puget Sound Energy sold $450 million of 3.25% 30-year senior notes on Monday at a spread of 120 bps over Treasuries, according to an FWP filing with the SEC.

The notes (A2/A-/A) priced at 99.353 to yield 3.284%.

MUFG, Scotia Capital (USA) Inc. and U.S. Bancorp Investments were the bookrunners.

Puget Sound Energy is a Bellevue, Wash.-based electric utility company.

Federal Realty Trust reopens

Federal Realty Investment Trust priced a $100 million add-on to its 3.2% notes due June 15, 2029 (A3/A-/) on Monday at a spread of 115 bps over Treasuries, according to an FWP filing with the SEC.

The trust sold the notes at 103.813 to yield 2.744%.

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

The notes were first priced on June 4 in a $300 million offering at 99.838 to yield 3.219% and a Treasuries plus 110 bps spread. The total outstanding is $400 million.

The real estate investment trust for retail and mixed-use buildings is based in Rockville, Md.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.