CRH America, Colonial Pipeline, Realty Income, KfW price new notes; deal pipeline builds

By Cristal Cody

Tupelo, Miss., March 27 – High-grade primary market action on Tuesday include new issues priced from CRH America Finance, Inc., Colonial Pipeline Co., Realty Income Corp. and KfW.

CRH America Finance priced $1.5 billion of senior notes in two parts.

Colonial Pipeline sold $550 million of 30-year senior notes.

Realty Income brought $500 million of seven-year senior notes to the primary market.

Also, KfW placed $4 billion of three-year global notes.

While supply is expected to slow ahead of the long Easter holiday weekend, several issuers are eying potential bond deals.

Coming up on Wednesday, General Mills, Inc. (Baa2/BBB/BBB+) will hold fixed-income investor calls, a source said. BofA Merrill Lynch, Goldman Sachs & Co. LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC are the arrangers.

General Mills announced on Feb. 23 that it will acquire premium pet food manufacturer Blue Buffalo Pet Products Inc. for $8 billion, or $40 per share in cash. General Mills said it expects to finance the acquisition with a combination of debt, cash on hand and about $1 billion of equity.

Also, later in April, both Banco Santander, SA and Caisse de depot et placement du Quebec plan to hold roadshows.

CRH prices $1.5 billion

CRH America Finance sold $1.5 billion of senior notes (Baa1/BBB+/) in two tranches in its offering on Tuesday, according to a market source.

The company priced $900 million of 3.95% 10-year notes at a spread of Treasuries plus 125 bps.

CRH America sold $600 million of 4.5% 30-year notes at a Treasuries plus 155 bps spread.

Both tranches priced on the tight side of guidance.

BofA Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets, MUFG, Santander Investment Securities Inc. and Societe Generale CIB were the bookrunners.

CRH America is a U.S. financing arm of Dublin-based building materials business group CRH plc.

Colonial Pipeline sells notes

Colonial Pipeline priced $550 million of 4.25% 30-year senior notes on Tuesday at a spread of 128 bps over Treasuries, according to a market source.

The notes (A3/A/) priced on the tight side of guidance in the Treasuries plus 130 bps spread area.

Mizuho Securities USA Inc., TD Securities (USA) LLC and Wells Fargo Securities, LLC were the lead managers.

Colonial Pipeline is an Alpharetta, Ga.-based refined products pipeline distributor of gas, diesel and jet fuel.

Realty Income prices

Realty Income sold $500 million of 3.875% senior notes due April 15, 2025 in line with guidance at a spread of 125 bps over Treasuries on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes (A3/BBB+/BBB+) priced at 99.50 to yield 3.957%.

Citigroup Global Markets, Barclays, BNY Mellon Capital Markets LLC, Mizuho Securities, RBC Capital Markets LLC, U.S. Bancorp Investments Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs, J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley, Regions Securities LLC, UBS Securities LLC and Wells Fargo Securities were the bookrunners.

The real estate investment trust for retail and commercial properties is based in Escondido, Calif.

Roadshows ahead

Looking ahead, Madrid banking services company Banco Santander (Baa1/A-/A-) plans to hold a roadshow in the U.S. and Canadian markets beginning April 3 for a benchmark-sized dollar-denominated note offering, according to a market source.

BofA Merrill Lynch, Citigroup Global Markets, J.P. Morgan Securities and Santander Investment Securities Inc. are the arrangers.

Also, Caisse de depot et placement du Quebec (Aaa/AAA/) is set to hold a roadshow for a potential dollar-denominated bond deal over the week of April 23, according to a market source.

BNP Paribas Securities, Goldman Sachs, HSBC Securities (USA) Inc. and TD Securities are the arrangers.

The public and parapublic pension plan and insurance program manager is based in Quebec City.

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