Disney, American Honda Finance, Sunoco among issuers; CBS, National Australia Bank firm

By Cristal Cody

Eureka Springs, Ark., July 7 – Primary action stayed strong over Thursday’s session with more than $10 billion of bonds priced in the investment-grade market.

The Walt Disney Co. sold $2 billion of notes (A2/A/A) in three parts. Disney saw tight pricing for its 10-year and 30-year tranches, a market source noted.

American Honda Finance Corp. priced $1.75 billion of series A medium-term notes (A1/A+) in two tranches during the session.

Sunoco Logistics Partners Operations LP brought an upsized $550 million of 3.9% 10-year senior notes.

Healthcare Trust of America Holdings, LP sold $350 million of 10-year senior notes.

In addition, Federal Realty Investment Trust priced $250 million of 3.625% 30-year notes.

Issuers including Raymond James Financial Inc. and Sumitomo Corp. also were expected in the primary market ahead of Friday’s June jobs report.

In the Canadian primary market, John Deere Canada Funding Inc. sold C$250 million of 1.6% four-year senior notes on Thursday at 99.869 to yield 1.634%, or 111 basis points over the interpolated Government of Canada bond curve.

Canadian Imperial Bank of Commerce also brought a deposit note offering. Final details were not available by press time.

The Markit CDX North American Investment Grade index ended the day mostly unchanged at a spread of 77 bps.

CBS Corp.’s $700 million offering of 2.9% senior notes due 2027 (Baa2/BBB) that priced on Wednesday traded 5 bps tighter in the secondary market earlier in the session.

National Australia Bank Ltd.’s new 1.875% notes due 2021 traded 5 bps better than issuance.

Walt Disney prices $2 billion

Walt Disney sold $2 billion of notes on the tight side of guidance on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company priced $500 million of 0.875% three-year notes at 99.664 with a spread of 30 bps over Treasuries. The notes were guided at 35 bps, plus or minus 5 bps, over Treasuries.

The $1 billion tranche of 1.85% 10-year notes priced at 97.897 and a spread of Treasuries plus 70 bps, on the tight side guidance of 75 bps over Treasuries, plus or minus 5 bps.

The company sold $500 million of 3% 30-year notes at 96.212 with a 105 bps spread over Treasuries, on the tight side of talk in the 105 bps to 110 bps area.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, Goldman Sachs & Co., HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

Walt Disney is a Burbank, Calif.-based entertainment and media company.

American Honda taps market

American Honda Finance priced $1.75 billion of series A medium-term notes in two tranches on Thursday, according to a market source and FWP filings with the SEC.

American Honda Finance sold $1.1 billion of 1.2% three-year notes at 99.9 to yield 1.234%, or 55 bps over Treasuries. The notes priced on the tight side of price guidance of Treasuries plus 60 bps area, plus or minus 5 bps.

The company placed $650 million of 1.65% five-year notes at 99.967 to yield 1.657%, or 70 bps over Treasuries. The notes were guided at Treasuries plus 75 bps area, plus or minus 5 bps.

The bookrunners were Barclays, BNP Paribas Securities Corp., Mizuho Securities USA Inc. and SMBC Nikko Securities America, Inc.

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

Sunoco brings $550 million

Sunoco Logistics Partners Operations sold an upsized $550 million of 3.9% 10-year senior notes with a spread of 255 bps over Treasuries on Thursday, according to a market source and an FWP filing with the SEC.

The notes (Baa3/BBB/BBB) priced at 99.696 to yield 3.937%.

The deal was upsized by $50 million and initial price talk was in the 300 bps area over Treasuries before tightening to the 260 bps area, plus or minus 5 bps.

The notes are guaranteed by Sunoco Logistics Partners LP.

Mizuho Securities, BNP Paribas Securities, SunTrust Robinson Humphrey Inc., Wells Fargo Securities, BBVA Securities Inc., Citizens Capital Markets, Inc., Deutsche Bank Securities Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LL and U.S. Bancorp Investments, Inc. were the bookrunners.

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

Philadelphia-based Sunoco transports and stores crude oil and natural gas.

Healthcare Trust prints

Healthcare Trust of America Holdings sold $350 million of 3.5% 10-year senior notes with a spread of 215 bps over Treasuries on Thursday, according to an FWP filing with the SEC.

The notes (Baa2/BBB) priced at 99.721 to yield 3.533%.

USBancorp, J.P. Morgan Securities LLC, Wells Fargo Securities and Jefferies LLC were the bookrunners.

The notes are fully and unconditionally guaranteed by Healthcare Trust of America, Inc.

Proceeds will be used to repay debt under the company’s revolving credit and term loan facility and for general corporate purposes, including working capital and investment in real estate.

The real estate investment trust for medical office buildings is based in Scottsdale, Ariz.

Federal Realty sells 30-years

Federal Realty Investment Trust priced $250 million of 3.625% 30-year notes at 160 bps over Treasuries on Thursday, according to an FWP filing with the SEC.

The notes (A3/A-) priced at 97.756 to yield 3.75%.

Wells Fargo Securities, Deutsche Bank Securities and USBancorp were the bookrunners.

Federal Realty intends to use the proceeds to pay down its revolving credit facility and for general corporate purposes.

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

CBS improves

CBS’ 2.9% senior notes due 2027 traded at 165 bps offered earlier in the secondary market, better than where the notes priced on Wednesday, a source said.

CBS sold $700 million of the notes at 170 bps over Treasuries.

The broadcasting company is based in New York.

Australia Bank firms

National Australia Bank’s 1.875% notes due 2021 were quoted 5 bps better than issuance at 95 bps offered early on Thursday, according to a market source.

The bank sold $1.25 billion of the notes (Aa2/AA-/AA-) on Tuesday at a spread of 100 bps over Treasuries.

National Australia bank is based in Melbourne.

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