ING, Tyson, Best Buy, Torchmark price ahead of Fed; quiet session amid rate hike likely

By Cristal Cody

Tupelo, Miss., Sept. 25 – ING Groep NV led deal action in the high-grade primary market on Tuesday with a $3.25 billion three-part offering of senior notes.

Also during the session, Tyson Foods, Inc. sold $900 million of senior notes on the tight side of guidance.

Torchmark Corp. brought $550 million of 10-year senior notes.

In addition, Best Buy Co., Inc. priced $500 million of 10-year notes.

Investment-grade deal volume week to date totals nearly $10 billion.

High-grade issuers are expected to stay to the sidelines on Wednesday as market focus turns to the Federal Reserve’s monetary policy announcement and anticipated rate hike, sources said.

On average, about $20 billion to $25 billion of issuance is forecast for the week.

Elsewhere on Tuesday, Vodafone Group plc was scheduled to continue a two-day round of fixed-income investor calls for a Regulation S multiple currency offering of hybrid notes (expected Baa3/BBB-/BBB-), according to a market source.

The deal from the London-based telecommunications company includes U.S. dollar-denominated notes, euro-denominated notes and sterling-denominated notes.

The Markit CDX North American Investment Grade 31 index closed mostly unchanged at a spread of 63 basis points.

In the secondary market, new issues priced on Monday mostly were tighter, a source said.

Royal Bank of Scotland Group plc’s $1.75 billion of 5.076% fixed-to-floating-rate senior notes due Jan. 27, 2030 were quoted about 2 bps better than issuance.

The notes (Baa2/BBB-/BBB+) priced at par to yield a spread of Treasuries plus 200 bps.

ING prices $3.25 billion

ING Groep priced $3.25 billion three-part dollar-denominated offering of senior notes (Baa1/A-/A+) on Tuesday, according to a market source.

The company sold $500 million of five-year floating-rate notes at Libor plus 100 bps.

A $1.5 billion offering of 4.1% five-year fixed-rate notes priced at a spread of Treasuries plus 112.5 bps.

ING also sold $1.25 billion of 4.55% 10-year notes at a Treasuries plus 150 bps spread.

Citigroup Global Markets Inc., Credit Agricole CIB, Goldman Sachs & Co., ING Financial Markets LLC, Morgan Stanley & Co. LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC were the bookrunners.

The global financial institution is based in Amsterdam.

Tyson sells two tranches

Tyson Foods sold $900 million of senior notes (Baa2/BBB/BBB) in two tranches on Tuesday on the tight side of guidance, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company placed $400 million of 3.9% five-year notes at 99.861 to yield 3.931%, or a spread of Treasuries plus 95 bps.

A $500 million tranche of 5.1% 30-year notes priced at 99.574 to yield 5.128%. The bonds priced with a Treasuries plus 190 bps spread.

Morgan Stanley, Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch and RBC Capital Markets, LLC were the bookrunners.

The meat and food production company is based in Springdale, Ark.

Torchmark raises $550 million

Torchmark priced $550 million of 4.55% 10-year senior notes (Baa1/A/) on Tuesday at 99.637 to yield 4.596%, or a Treasuries plus 150 bps spread, according to an FWP filing with the SEC.

BofA Merrill Lynch, U.S. Bancorp Investments Inc. and Wells Fargo Securities were the bookrunners.

Torchmark is an insurance holding company based in McKinney, Texas, that provides life insurance and supplemental health insurance.

Best Buy sells 10-year notes

Best Buy sold $500 million of 4.45% 10-year notes on Tuesday at 99.608 to yield 4.499%, according to an FWP filing with the SEC.

The notes (Baa1/BBB/BBB) priced at a Treasuries plus 140 bps spread.

BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and U.S. Bancorp Investments and BBVA Securities Inc. were the bookrunners.

Best Buy is a Richfield, Minn.-based retailer of consumer electronics, computers and entertainment software.

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