General Dynamics, Entergy, Huntington, Westpac, Verizon price notes; Eni plans roadshow

By Cristal Cody

Tupelo, Miss., May 8 – General Dynamics Corp. led pricing action in the investment-grade bond market on Tuesday with a $7.5 billion seven-tranche offering of senior notes.

Westpac Banking Corp. also tapped the primary market with a $3 billion four-part deal.

Verizon Communications Inc. came with $1.78 billion of seven-year floating-rate notes.

Huntington National Bank sold $750 million of three-year senior notes.

Also, Huntington Bancshares Inc. priced $500 million of seven-year senior notes.

In addition, Entergy Arkansas Inc. sold $250 million of 10-year first mortgage bonds.

Issuers priced more than $5 billion of high-grade bonds during Monday’s session.

Syndicate sources forecast about $30 billion to $35 billion of supply for the week.

Looking on the horizon, Eni SpA is expected to price senior notes following a roadshow in mid-May.

The Markit CDX North American Investment Grade 30 index softened about 1 basis point to end the day at a spread of 63 bps.

General Dynamics sells notes

General Dynamics priced $7.5 billion of senior notes (A2/A+/A) in seven tranches on Tuesday, according to a market source.

The company sold $500 million of two-year floating-rate notes at Libor plus 29 bps and $2 billion of 2.875% two-year fixed-rate notes at a spread of 55 bps over Treasuries.

General Dynamics sold $500 million of three-year floaters at Libor plus 38 bps and $2 billion of 3% three-year fixed-rate notes at a Treasuries plus 60 bps spread.

The $750 million tranche of 3.375% five-year notes priced at a 65 bps spread over Treasuries.

General Dynamics placed the $750 million seven-year tranche of 3.50% notes at a Treasuries plus 77 bps spread.

Finally, the company sold $1 billion of 3.75% 10-year notes at a spread of 85 bps over Treasuries.

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

General Dynamics is a Falls Church, Va.-based global aerospace and defense company.

Westpac raises $3 billion

Westpac Banking priced $3 billion of notes (Aa3/AA-/AA-) in four tranches on Tuesday, according to a market source.

The company sold $750 million of two-year floating-rate notes at Libor plus 28 bps.

Westpac placed $500 million of 3.05% two-year fixed-rate notes at a spread of Treasuries plus 55 bps.

The $750 million tranche of five-year floaters priced at Libor plus 72 bps, while a $1 billion tranche of 3.65% five-year fixed-rate notes were sold with a spread of 85 bps over Treasuries.

The two-year notes priced on the tight side of guidance, while the five-year tranches priced at the number.

BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Westpac Banking Corp. were the bookrunners.

The bank is based in Sydney, Australia.

Verizon sells floaters

Verizon Communications (Baa1/BBB+/A-) priced $1,788,800,000 of seven-year floating-rate notes at par to yield Libor plus 110 bps on Tuesday, according to an FWP filed with the Securities and Exchange Commission.

Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Mizuho Securities USA Inc., ICBC Standard Bank plc, Santander Investment Securities Inc., Great Pacific Securities and Williams Capital Group, LP were the bookrunners.

Verizon is a New York City-based telecommunications company.

Huntington Bank prints

Huntington National Bank (A3/A-/A-) priced $750 million of 3.25% three-year senior notes on the tightest side of guidance at a spread of 68 bps over Treasuries, a market source said Tuesday.

Goldman Sachs, Morgan Stanley, RBC Capital Markets and Huntington Investment Co. were the bookrunners.

Huntington National Bank is part of Columbus, Ohio-based bank holding company Huntington Bancshares Inc.

Huntington Bancshares prices

Huntington Bancshares priced $500 million of 4% senior notes due May 15, 2025 with a spread of 112.5 bps over Treasuries on Tuesday, according to an FWP filing with the SEC.

The notes (Baa1/BBB+/A-) priced at 99.686 to yield 4.052%.

Morgan Stanley, Goldman Sachs, RBC Capital Markets and Huntington Investment were the bookrunners.

Huntington Bancshares is a Columbus, Ohio-based regional bank holding company.

Eni eyes bond deal

Eni (A3/BBB+/A-) plans to hold a roadshow May 14-17 for a dollar-denominated Rule 144A and Regulation S senior note offering, according to a market source.

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

Eni is a multinational oil and gas company based in Rome.

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