AT&T prices $10 billion; Seagate, National Rural Utilities sell bonds; Microsoft improves

By Cristal Cody

Tupelo, Miss., Jan. 31 – Deal action stayed strong for a second straight session, led by a $10 billion six-part offering of notes from AT&T Inc. on Tuesday.

Also, Seagate Technology plc announced that a subsidiary priced a $1.25 billion two-tranche offering of senior notes in a Rule 144A- and Regulation S-eligible private placement.

In addition, National Rural Utilities Cooperative Finance Corp. sold $450 million of seven-year collateral trust bonds.

The Markit CDX North American Investment Grade index eased about 1 basis point to close the day at a spread of 66 bps.

Microsoft Corp.’s notes, priced as part of a $17 billion offering on Monday, improved in secondary trading over the session.

AT&T brings $10 billion

AT&T priced $10 billion of global notes (Baa1/BBB+/A-) in six tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The company sold $1.25 billion of 3.2% notes due March 1, 2022 at 99.924.

AT&T placed $750 million of 3.8% notes due March 1, 2024 at 99.936.

The company priced $2 billion of 4.25% notes due March 1, 2027 at 99.94.

AT&T sold $3 billion of 5.25% bonds due March 1, 2037 at 99.529.

The $2 billion tranche of 5.45% notes due March 1, 2047 priced at 99.439.

In the final tranche, AT&T sold $1 billion of 5.7% notes due March 1, 2057 at 99.401.

Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Commerz Markets LLC, Goldman Sachs & Co., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, SG Americas Securities, LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC were the bookrunners.

Proceeds will be used for general corporate purposes, including to repay upcoming debt maturities.

AT&T is a Dallas-based telecommunications company.

Seagate brings $1.25 billion

Seagate Technology subsidiary Seagate HDD Cayman sold $1.25 billion of senior notes (Baa3/BBB-/BBB-) in two parts on Tuesday, according to a news release.

The company priced $750 million of 4.25% five-year notes at 99.77.

Seagate Technology sold $500 million of 4.875% seven-year notes at 99.328.

The notes will be guaranteed by Seagate Technology.

Proceeds will be used for general corporate purposes, including to repay the company’s 3.75% senior notes due 2018 and other debt repayments, capital expenditures and other investments.

Seagate is a Cupertino, Calif.-based hard drive manufacturer.

National Rural Utilities prices

National Rural Utilities Cooperative Finance brought $450 million of 2.95% collateral trust bonds due Feb. 7, 2024 to market at 99.805 to yield 2.981%, according to an FWP filing with the SEC.

The bonds (A1/A/A+) priced with a spread of Treasuries plus 75 bps.

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

Proceeds will be used for general corporate purposes, including short-term debt repayment, primarily consisting of commercial paper.

The market lender for electric cooperatives is based in Herndon, Va.

Microsoft improves

Microsoft’s 3.3% notes due Feb. 6, 2027 headed out better at 100.30 on Tuesday, up from 100.05 early Tuesday, according to a market source.

The company sold $4 billion of the notes on Monday at 99.645 to yield 3.342% and a spread of 85 bps over Treasuries.

The tranche of 4.1% notes due Feb. 6, 2037 rose to 101.79 going out from 101.35 at the start of the day.

Microsoft sold the $2.5 billion offering of 20-year notes at 99.783 to yield 3.342% and with a spread of Treasuries plus 100 bps.

Microsoft’s 4.25% notes due Feb. 6, 2047 climbed to 101.15 in afternoon trading on Tuesday.

The bonds were sold in a $3 billion tranche on Monday at 99.731 to yield 4.266%, or Treasuries plus 115 bps.

The computer software company is based in Redmond, Wash.

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