Shell, BB&T, Equifax, Estee Lauder, Paccar flood market; AT&T mixed; Whole Foods eases

By Cristal Cody

Eureka Springs, Ark., May 5 – Investment-grade corporate issuers turned out in force on Thursday to price more than $10 billion of bonds.

Shell International Finance BV sold $7.25 billion of guaranteed senior notes (Aa2/A+) in four parts.

BB&T Corp. brought $1.25 billion of five-year senior medium-term notes over the day.

Equifax Inc. sold $775 million of senior notes in two parts on Thursday.

Estee Lauder Cos. Inc. sold $600 million of senior notes in two tranches, including a tap of long bonds.

Paccar Financial Corp. priced $500 million of three-year medium-term notes.

Markel Corp. brought a $100 million tap of its 5% 30-year senior notes during the session.

Time Warner Inc. also was expected to price a benchmark offering of 10-year senior notes on Thursday.

The Markit CDX North American Investment Grade series 23 index ended the day 2 basis points softer at a spread of 85 bps.

AT&T Inc.’s senior notes (Baa1//A-), which were reopened on Tuesday, were mixed in the secondary market.

Whole Foods Market Inc.’s 5.2% senior notes due 2025 eased 3 bps to 272 bps bid on Thursday. The grocery retailer’s shares closed up 6% after the company reported better-than-expected second-quarter earnings after the closing bell on Wednesday.

Earlier in the day, new bonds brought from Travelers Cos., Inc. and C.R. Bard, Inc. traded 2 bps to 1 bp tighter in the secondary market.

Shell prices $7.25 billion

Shell International Finance priced $7.25 billion of guaranteed senior notes in four tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.

In the first tranche, the company sold $1.75 billion of 1.375% three-year notes at 99.778 to yield 1.451%, or 60 bps over Treasuries.

Shell priced $1.5 billion of 1.875% five-year notes at 99.455 to yield 1.99%, or 80 bps over Treasuries.

The company brought $1.75 billion of 2.875% 10-year notes at 99.672 to yield 2.913%, or 118 bps over Treasuries.

Finally, the $2.25 billion tranche of 4% 30-year notes priced at 98.198 to yield 4.105%, or 152 bps over Treasuries.

Barclays, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC were the bookrunners.

The notes are guaranteed by Royal Dutch Shell plc.

The Hague, the Netherlands-based oil and gas company plans to use the proceeds for general corporate purposes.

BB&T sells $1.25 billion

BB&T priced $1.25 billion of 2.05% five-year senior medium-term notes (A1/A-/A+) at 99.896 to yield 1.197% on Thursday, according to an FWP filing with the SEC.

The series E notes priced with a spread of 87.5 bps over Treasuries.

BB&T Capital Markets, Deutsche Bank, Goldman Sachs & Co. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

The bank and financial services company is based in Winston-Salem, N.C.

Equifax prices two tranches

Equifax sold $775 million of senior notes (Baa1/BBB+) in two parts on Thursday, according to an FWP filing with the SEC.

The company placed $500 million of 2.3% five-year notes at 99.952 to yield 2.31%. The notes priced with a spread of 110 bps over Treasuries.

Equifax sold $275 million of 3.25% 10-year notes at 99.964 to yield 3.254%, or 150 bps over Treasuries.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo, SunTrust Robinson Humphrey Inc. and Mizuho Securities USA Inc. were the bookrunners.

Proceeds will be used to repay borrowings under the company’s 364-day revolving credit facility and a portion of the borrowings under its commercial paper program incurred to finance the acquisition of Veda Group Ltd.

Equifax is an Atlanta-based information technology provider that collects and organizes credit, financial, public record, demographic and marketing information on individuals and businesses.

Estee Lauder prices

Estee Lauder sold $600 million of senior notes (A2/A+) in two tranches on Thursday, according to an FWP filing with the SEC.

The company priced $450 million of 1.7% five-year notes at 99.976 to yield 1.705%, or 50 bps over Treasuries.

The company sold a $150 million tap of its 4.375% notes due June 15, 2045 at 110.847 to yield 3.753%, or 115 bps over Treasuries.

Estee Lauder originally sold the issue on June 1, 2015 in a $300 million tranche at 97.999 to yield 4.497%, or Treasuries plus 155 bps. The total outstanding is $450 million.

JPMorgan, BofA Merrill Lynch and MUFG were the bookrunners.

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

New York-based Estee Lauder is a manufacturer and marketer of skin care, makeup, fragrance and hair care products.

Paccar sells $500 million

Paccar Financial sold $500 million of 1.3% three-year medium-term notes at 99.941 to yield 1.32% on Thursday, according to an FWP filing with the SEC.

The series O notes (A1/A+) priced with a spread of 45 bps over Treasuries.

JPMorgan, BNP Paribas Securities Corp., Mizuho Securities USA Inc. and U.S. Bancorp Investments, Inc. were the bookrunners.

Paccar Financial is the Bellevue, Wash.-based financing arm of Paccar Inc.

Markel reopens 30-year notes

Markel sold $100 million in a tap of its 5% 30-year senior notes with a spread of 230 bps over Treasuries on Thursday, according to an FWP filing with the SEC.

The company priced the notes (Baa2/BBB+/BBB+) at 101.21 to yield 4.922%.

Wells Fargo was the bookrunner.

Markel originally sold the notes in a $400 million offering on March 29 at 98.957 to yield 5.068%, or Treasuries plus 245 bps. The total outstanding is $500 million.

Markel is a Glen Allen, Va.-based holding company for insurance, reinsurance and investment operations.

AT&T mixed

In the secondary market, AT&T’s 4.125% notes due 2026 eased 1 bp to 154 bps bid over the day, a market source said.

AT&T sold $900 million in a tap of the issue on Tuesday at a spread of Treasuries plus 150 bps.

The notes originally were priced on Jan. 29 in a $1.5 billion tranche at Treasuries plus 195 bps.

AT&T’s 4.8% notes due 2044 firmed 1 bp to 214 bps bid on Thursday.

The company sold $500 million of the bonds in an add-on on Tuesday at 210 bps over Treasuries.

The company originally sold the notes in a $2 billion tranche on June 3, 2014 at 140 bps over Treasuries.

AT&T is a Dallas-based telecommunications company.

Whole Foods eases

Whole Foods’ 5.2% notes due 2025 eased 3 bps to 272 bps bid on Thursday, a market source said.

The company sold $1 billion of the bonds (Baa3/BBB-) on Nov. 30 at Treasuries plus 300 bps.

The natural and organic foods supermarket operator is based in Austin, Texas.

Travelers tightens

Travelers’ 3.75% notes due 2046 were quoted 2 bps tighter at 113 bps offered early on Thursday, a market source said.

The bonds (A2/A) priced on Wednesday in a $500 million tranche at Treasuries plus 115 bps.

Travelers is a holding company for commercial, property and casualty insurance subsidiaries based in New York City.

C.R. Bard firms

C.R. Bard’s 3% notes due 2026 traded 1 bp tighter in morning secondary trading at 121 bps offered, a market source said.

The company sold $500 million of the notes (Baa1/A) on Wednesday at a spread of 122 bps over Treasuries.

C.R. Bard is a Murray Hill, N.J.-based maker of medical devices.

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