Starbucks, Regions, Entergy, Fidelity, National Fuel price; Elanco eyes $2.5 billion deal

By Cristal Cody

Tupelo, Miss., Aug. 8 – Investment-grade bond supply remained strong on Wednesday, bringing week-to-date issuance to about $30 billion.

Starbucks Corp. led pricing action during the session with a $3 billion three-part offering of senior notes.

Regions Bank came with $1 billion of three-year notes in two tranches, while Regions Financial Corp. sold $500 million of five-year senior notes.

Entergy Louisiana LLC placed $600 million of 30-year collateral trust mortgage bonds.

Fidelity National Financial, Inc. priced $450 million of 10-year senior notes.

In addition, National Fuel Gas Co. sold $300 million of 10-year notes.

In other issuance, AT&T Inc. priced C$2 billion of global senior notes in two tranches in a deal registered with the Securities and Exchange Commission.

Willis Lease Finance Corp. also announced on Wednesday an offering of $373.4 million of fixed-rate notes in two tranches.

Syndicate sources had expected about $20 billion to $25 billion of volume for the whole week.

Coming up on Thursday, Elanco Animal Health Inc. plans to hold fixed-income investor calls for a potential $2.5 billion offering of senior notes.

The Markit CDX North American Investment Grade 30 index ended modestly tighter at a spread of 58 basis points.

Starbucks prices $3 billion

Starbucks priced $3 billion of senior notes (Baa1/BBB+/BBB+) in three tranches on the tight side of guidance on Wednesday, according to a market source and an FWP filing with the SEC.

The company sold $1.25 billion of 3.8% seven-year notes at 99.908 to yield 3.815%. The notes priced with a spread of 90 bps over Treasuries.

It also priced $750 million of 4% 10-year notes at 99.888 to yield 4.014%, or a Treasuries plus 105 bps spread.

In the 30-year tranche, the company sold $1 billion of 4.5% bonds at 98.962 to yield 4.564%. The bonds priced with a spread of Treasuries plus 145 bps.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and U.S. Bancorp Investments Inc. were the bookrunners.

Starbucks is a Seattle-based specialty coffee retailer.

Regions Bank sells notes

Regions Bank sold $1 billion of three-year notes (Baa2/A-/BBB+) in two parts on Wednesday, according to a market source.

The company priced $500 million of floating-rate notes due Aug. 13, 2021 at Libor plus 50 bps.

Regions Bank sold $500 million of 3.174% three-year notes at a spread of 70 bps over Treasuries.

RBC Capital Markets, LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities, Morgan Stanley and Regions Securities LLC were the bookrunners.

Regions Bank is a banking services provider and subsidiary of financial services company Birmingham, Ala.-based Regions Financial Corp.

Regions Financial prices

Regions Bank’s parent, Regions Financial, sold $500 million of 3.8% five-year senior notes (Baa2/BBB+/BBB+) on Wednesday at a spread of 98 bps over Treasuries, according to a market source.

The notes were guided to price in the Treasuries plus 100 bps area, plus or minus 2 bps, and were initially talked to print in the Treasuries plus 110 bps area.

RBC Capital Markets, Goldman Sachs, J.P. Morgan Securities, Morgan Stanley and Regions Securities were the bookrunners.

Regions is a financial services company based in Birmingham, Ala.

Entergy brings bonds

Entergy Louisiana sold $600 million of 4.2% 30-year collateral trust mortgage bonds on Wednesday at a spread of 110 bps over Treasuries, according to an FWP filing with the SEC.

The bonds (A2/A/) priced at 99.811 to yield 4.211%.

BNP Paribas Securities Corp., Citigroup Global Markets, BofA Merrill Lynch, MUFG and U.S. Bancorp Investments Inc. were the bookrunners.

Entergy Louisiana is a Jefferson, La.-based energy provider.

Fidelity in primary

Fidelity National Financial placed $450 million of 4.5% 10-year senior notes (Baa2/BBB/BBB) on Wednesday on top of guidance at a spread of 175 bps over Treasuries, according to a market source and a company news release.

The notes priced at 99.252 to yield 4.594%.

BofA Merrill Lynch was the bookrunner.

The commercial and residential mortgage services company is based in Jacksonville, Fla.

National Fuel Gas prints

National Fuel Gas also sold $300 million of 4.75% 10-year notes during the session at a spread of Treasuries plus 187.5 bps, according to an FWP filing with the SEC.

The notes (Baa3/BBB/BBB) priced at 99.273 to yield 4.842%.

J.P. Morgan Securities, HSBC Securities (USA) Inc., BofA Merrill Lynch, CIBC World Markets Corp. and KeyBanc Capital Markets Inc. were the bookrunners.

National Fuel Gas is a Williamsville, N.Y.-based energy company.

Willis Lease offers notes

Willis Lease Finance announced on Wednesday that subsidiary Willis Engine Structured Trust IV is offering $373.4 million of fixed-rate notes in two tranches, according to a news release.

The Rule 144A and Regulation S deal includes $326.8 million of series A notes and $46.7 million of series B notes.

The asset-backed notes will be secured by, among other things, Willis Engine Structured Trust IV’s direct and indirect interests in a portfolio of 55 aircraft engines and one airframe.

Willis Lease Finance is a Novato, Calif.-based lessor of commercial jet engines.

Elanco plans investor calls

Looking to Thursday’s session, Elanco Animal Health (Baa3/BB+/) plans to hold fixed-income investor calls for a potential $2.5 billion offering of senior notes, according to a market source.

Citigroup Global Markets, Goldman Sachs and J.P. Morgan Securities are the arrangers.

Elanco Animal Health is an animal health products company based in Greenfield, Ind.

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