Issuers flood primary; Brooklyn Gas, Rockwell, Mitsui Sumitomo, Black & Decker, CDP price

By Cristal Cody

Tupelo, Miss., Feb. 27 – Nearly $6 billion of corporate bonds priced in the high-grade primary market on Wednesday.

The session also saw a $2 billion deal in the sovereign, supranational and agency space.

In corporate issuance, Brooklyn Union Gas Co. sold $1 billion of senior notes in two parts following fixed income investor calls on Tuesday.

Rockwell Automation, Inc. priced a $1 billion two-tranche offering of senior notes.

Mitsui Sumitomo Insurance Co. Ltd. sold $910 million of perpetual subordinated notes.

Huntsman International LLC came with $750 million of 10-year senior notes.

Stanley Black & Decker, Inc. sold $500 million of seven-year notes.

Travelers Cos., Inc. priced $500 million of 30-year senior notes.

Verisk Analytics, Inc. brought $400 million of 10-year senior notes on Wednesday.

Selective Insurance Group, Inc. sold $300 million of 30-year senior notes.

In SSA supply, CDP Financial Inc. priced $2 billion of three-year senior notes.

More than $21 billion of high-grade corporate bonds have priced week to date. Deal volume has been led so far by Mitsubishi UFJ Financial Group, Inc.’s $5.5 billion five-part offering of senior notes that priced Tuesday.

About $25 billion to $30 billion of supply is expected by syndicate sources this week.

The Markit CDX North American Investment Grade 31 index was steady over the day at a spread of 60 basis points.

Earlier in the secondary market, Telefonica Emisiones SAU’s $1.25 billion of 5.52% senior notes due March 1, 2049 (Baa3/BBB/BBB) were quoted about 1 bp softer from where the notes priced in the previous session at a spread of Treasuries plus 252 bps.

Brooklyn Union Gas prints

Brooklyn Union (A3/A-/BBB+) priced $1 billion of senior notes in two parts on the tight side of guidance on Wednesday, according to a market source.

A $550 million tranche of 3.865% 10-year notes priced with a spread of 117 bps over Treasuries.

The company sold $450 million of 4.487% 30-year notes at a Treasuries plus 142 bps spread.

BofA Merrill Lynch, BNY Mellon Capital Markets LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and MUFG were the lead managers.

The National Grid plc subsidiary is a Brooklyn, N.Y.-based natural gas distributor and transporter.

Rockwell prices $1 billion

Rockwell Automation priced a $1 billion two-tranche offering of senior notes (A3/A/A) on Wednesday, according to a market source.

A $425 million tranche of 3.5% 10-year notes priced at a spread of 85 bps over Treasuries.

Rockwell Automation sold $575 million of 4.2% 30-year notes at a Treasuries plus 115 bps spread.

Both tranches priced on the tight side of guidance.

BofA Merrill Lynch, Goldman Sachs Wells Fargo Securities, LLC were the bookrunners.

Proceeds will be used to repay outstanding commercial paper and general corporate purpose.

The industrial automation and information company is based in Milwaukee.

Mitsui Sumitomo sells notes

Mitsui Sumitomo Insurance priced $910 million of perpetual subordinated notes (expected A3/A-/A-) at par to yield 4.95% on Wednesday, according to a market source.

Price guidance was in the 5% area.

The rate on the notes will reset March 6, 2029 to mid-swaps plus 325.6 bps and will reset every five years thereafter.

BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs and J.P. Morgan Securities LLC were the lead managers of the Rule 144A and Regulation S offering.

Mitsui Sumitomo held fixed income investor calls on Tuesday in the United States, Europe and Asia for the issue.

The insurance company is based in Tokyo.

Huntsman brings deal

Huntsman International (Baa3/BB+/BBB-) sold $750 million of 4.5% 10-year senior notes on Wednesday at a spread of 195 bps over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.

Price guidance on the notes was in the Treasuries plus 200 bps area. The notes were initially talked to print at a spread in the Treasuries plus 225 bps area.

The notes priced at 98.87 to yield 4.64%.

Citigroup Global Markets, BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Goldman Sachs, HSBC Securities (USA) Inc., J.P. Morgan Securities, Morgan Stanley & Co. LLC, PNC Capital Markets LLC and SunTrust Robinson Humphrey, Inc. were the bookrunners.

Huntsman International is a subsidiary of Huntsman Corp., a chemical products company based in The Woodlands, Texas.

Stanley Black & Decker prices

Stanley Black & Decker sold $500 million of 3.4% seven-year notes (Baa1/A/A-) on Wednesday at 99.858 to yield 3.423%, according to a market source and an FWP filing with the SEC.

The notes priced with a spread of 85 bps over Treasuries.

Price guidance was in the Treasuries plus 87.5 bps area, plus or minus 2.5 bps.

Citigroup Global Markets, Deutsche Bank Securities, RBC Capital Markets, LLC and Wells Fargo Securities, LLC were the bookrunners.

Stanley Black & Decker is a New Britain, Conn.-based maker of hand tools, power tools and accessories.

Travelers prices $500 million

Travelers priced $500 million of 4.1% 30-year senior notes (A2/A/A) on Wednesday at a spread of Treasuries plus 107 bps, on the tight side of guidance in the 110 bps spread area, according to a market source an an FWP filing with the SEC.

The notes priced at 99.623 to yield 4.122%.

Goldman Sachs, BofA Merrill Lynch, Morgan Stanley and U.S. Bancorp Investments, Inc. were the bookrunners.

Travelers is a New York-based holding company for auto, home and business property casualty insurance companies.

Verisk Analytics places issue

Verisk Analytics (Baa2/BBB/BBB+) priced $400 million of 4.125% 10-year senior notes on Wednesday on the tight side of guidance at a spread of Treasuries plus 150 bps, according to a market source and an FWP filing with the SEC.

The notes priced at 99.463 to yield 4.191%.

HSBC Securities, BofA Merrill Lynch, J.P. Morgan Securities, Morgan Stanley, SunTrust Robinson Humphrey and Wells Fargo Securities were the bookrunners.

The data analytics provider is based in Jersey City, N.J.

Selective Insurance sells 30-year notes

Selective Insurance Group priced $300 million of 5.375% 30-year senior notes (Baa2/BBB/) on Wednesday at a spread of Treasuries plus 245 bps, according to an FWP filing with the SEC.

The notes priced at 98.03 to yield 5.51%.

RBC Capital Markets, Wells Fargo Securities and BofA Merrill Lynch were the bookrunners.

Selective Insurance is a regional property and casualty insurance company based in Branchville, N.J.

CDP Financial raises $2 billion

In the SSA primary market, CDP Financial (Aaa/AAA/AAA) priced $2 billion of 2.75% three-year senior notes on Wednesday at mid-swaps plus 23 bps, or a Treasuries plus 28.8 bps spread, according to a market source.

Initial price talk was in the mid-swaps plus mid-20 bps area with guidance later firmed to the mid-swaps plus 24 bps area.

BNP Paribas Securities Corp., Goldman Sachs, HSBC Securities and TD Securities (USA) LLC were the bookrunners of the Rule 144A and Regulation S offering.

Parent La Caisse de depot et placement du Quebec will guarantee the notes.

CDP Financial is a Montreal-based financing arm of the public and parapublic pension plan and insurance program manager.

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