Deal action slows; Florida Power prices $750 million; Harris sells floaters; AT&T eases

By Cristal Cody

Tupelo, Miss., Nov. 1 – Investment-grade deal action slowed on Wednesday with two U.S. bond issuers in the primary market during the session.

Florida Power & Light Co. priced $750 million of three-year floating-rate notes.

Harris Corp. sold $250 million of senior floating-rate notes due April 30, 2020.

The Federal Reserve left rates unchanged on Wednesday following a two-day monetary policy meeting.

On Thursday, President Donald Trump is expected to give a nomination for chairman of the Federal Reserve.

In other activity expected on Thursday, Nederlandse Waterschapsbank NV intends to hold investor calls for a four-year green bond offering.

The Markit CDX North American Investment Grade 29 index eased nearly 1 basis point to a spread of 53 bps.

AT&T Inc.’s bonds (Baa1/BBB+/A-) headed out flat to about 2 bps softer in secondary trading.

The company is expected to close on its $85.4 billion cash and stock acquisition of Time Warner Inc. (Baa2/BBB/BBB+) before the end of the year.

Time Warner’s 2.95% notes due July 15, 2026 were unchanged.

Florida Power sells notes

Florida Power & Light priced $750 million of floating-rate notes due Nov. 6, 2020 (A1/A-/A+) at par to yield Libor plus 28 bps on Wednesday, according to an FWP filed with the Securities and Exchange Commission.

The rate will reset quarterly on Feb. 6, May 6, Aug. 6 and Nov. 6, beginning Feb. 6, 2018.

Goldman Sachs & Co., Scotia Capital (USA) Inc. and Wells Fargo Securities LLC were the bookrunners.

Proceeds from the deal will be used for general corporate purposes.

Florida Power & Light is a Juno Beach, Fla.-based electric utility.

Harris prices $250 million

Harris sold $250 million of senior floating-rate notes due April 30, 2020 (Baa3/BBB-/BBB-) at par to yield Libor plus 48 bps on Wednesday, according to an FWP filed with the SEC.

Morgan Stanley & Co. LLC was the bookrunner.

Proceeds will be used with cash on hand to repay in full the approximately $250 million in remaining debt under the five-year tranche of the company’s $1.3 billion senior term loan.

The communications and information company is based in Melbourne, Fla.

Nederlandse to hold calls

Nederlandse Waterschapsbank (Aaa/AAA/) plans to hold investor calls on Thursday ahead of a Rule 144A and Regulation S dollar-denominated four-year green bond offering, according to a market source.

BofA Merrill Lynch, Daiwa Capital Markets Europe Ltd. and Nomura Securities International, Inc. are the arrangers.

The local government funding agency is based in The Hague.

AT&T eases

AT&T’s 3.9% notes due Aug. 14, 2027 eased 2 bps on Wednesday to 159 bps bid, a market source said.

The company sold $5 billion of the notes on July 27 at a spread of 160 bps over Treasuries.

AT&T is a Dallas-based telecommunications company.

Time Warner steady

Time Warner’s 2.95% notes due July 15, 2026 were flat in secondary trading on Wednesday at 130 bps bid, according to a market source.

Time Warner sold $800 million of the notes on May 5, 2016 at a spread of Treasuries plus 135 bps.

The media and entertainment company is based in New York.

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