HSBC, American Tower, Entergy Louisiana tap market; Viacom plans deal; Verizon, Kroger mixed

By Cristal Cody

Eureka Springs, Ark., Sept. 28 – Three high-grade issuers priced more than $5 billion of bonds during Wednesday’s session.

HSBC Holdings plc sold $3.75 billion of fixed- and floating-rate senior notes due 2022 in two tranches.

American Tower Corp. tapped the primary market with a $1 billion two-part offering of senior notes.

Entergy Louisiana LLC came with a $400 million sale of 10-year collateral trust mortgage bonds.

In other activity, Viacom Inc. held a second day of investor calls in advance of an expected bond deal.

The Markit CDX North American Investment Grade index firmed about 2 basis points to close at a spread of 75 bps.

In the secondary market, Verizon Communications Inc.’s senior notes traded flat to about 1 bp tighter.

Google holding company Alphabet Inc.’s 1.998% notes due 2026 firmed about 1 bp.

Kroger Co.’s senior notes (Baa1/BBB/BBB) priced on Monday were mixed earlier in the day.

HSBC sells $3.75 billion

HSBC Holdings sold $3.75 billion of fixed- and floating-rate senior notes in two tranches on Wednesday, according to FWP filings with the Securities and Exchange Commission.

The company sold $1.25 billion of floating-rate notes due Jan. 5, 2022 at par to yield Libor plus 150 bps.

In the second tranche, HSBC priced $2.5 billion of 2.65% notes due Jan. 5, 2022 at 99.906 to yield 2.668% and a spread of Treasuries plus 155 bps.

HSBC Securities (USA) Inc. was the bookrunner.

The London-based banking and financial services group plans to use the proceeds for general corporate purposes.

American Tower prices

American Tower priced $1 billion of senior notes (Baa3/BBB-/BBB) in two parts on Wednesday, according to an FWP filing with the SEC.

The $600 million tranche of 2.25% notes due Jan. 15, 2022 priced at 99.858 to yield 2.279% and a spread of 117 bps plus Treasuries.

American Tower sold $400 million of 3.125% notes due Jan. 15, 2027 at 99.933 to yield 3.133%, or Treasuries plus 157 bps.

Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds will be used to repay debt under the company’s term loan entered into in October 2013.

American Tower is a telecommunications provider based in Boston.

Entergy Louisiana brings bonds

Entergy Louisiana sold $400 million of 2.4% 10-year collateral trust mortgage bonds on Wednesday at 99.577 to yield 2.448%, according to an FWP filing with the SEC.

The bonds (A2/A/) priced with a spread of 90 bps over Treasuries.

BNP Paribas Securities Corp., Goldman Sachs & Co., KeyBanc Capital Markets Inc., SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to repurchase or redeem the company’s $57.5 million 8.09% Waterford 3 secured lease obligation bonds due Jan. 2, 2017 prior to maturity and for general corporate purposes.

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

Viacom holds roadshow

Viacom (Baa3/BBB-/BBB) wrapped a two-day roadshow on Wednesday with a dollar-denominated benchmark size bond offering expected to soon follow, according to a market source.

BofA Merrill Lynch, Citigroup and Morgan Stanley arranged the investor calls.

Viacom is a New York City-based diversified media company with interests focused in cinema and cable television.

Verizon flat to tighter

Verizon’s 2.625% notes due 2026 headed out about 1 bp better at 137 bps bid, according to a market source.

Verizon sold $2.25 billion of the notes (Baa1//A-) on July 27 at a spread of Treasuries plus 115 bps.

The company’s 4.125% notes due 2046 were flat in secondary trading at 178 bps bid.

Verizon sold $1.5 billion of the bonds in the July transaction at 190 bps over Treasuries.

The telecommunications company is based in New York City.

Alphabet firms

Alphabet’s 1.998% notes due 2026 traded about 1 bps tighter on Wednesday at 61 bps bid, a market source said.

Alphabet priced $2 billion of the notes (Aa2/AA/) on Aug. 2 at a spread of 68 bps over Treasuries.

Mountain View, Calif.-based Alphabet is the holding company for Google and other subsidiaries.

Kroger mixed

Kroger’s 2.65% notes due 2026 softened about 2 bps to 112 bps offered earlier in the day in secondary trading, according to a market source.

Kroger sold $750 million of the notes on Monday at a spread of 110 bps over Treasuries.

The company’s 3.875% notes due 2046 traded about 1 bp tighter at 153 bps offered.

Kroger priced $500 million of the bonds on Monday at Treasuries plus 155 bps.

Kroger is a Cincinnati-based grocery retailer.

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