Primary busy; CBS upsizes; Compass Bank, Athene, Voya, CBOE, Freddie Mac price notes

By Cristal Cody

Tupelo, Miss., June 26 – Monday turned into a busy session with seven reported corporate bond deals and one agency offering in the high-grade primary market.

CBS Corp. priced an upsized $900 million two-part offering of senior notes.

Compass Bank came with $750 million of five-year notes.

Athene Global Funding brought a $700 million two-tranche deal.

Voya Financial, Inc. sold $400 million of seven-year senior notes on Monday.

Indiana Michigan Power Co. priced $300 million of 30-year bonds.

CBOE Holdings Inc. sold $300 million of two-year notes.

RenaissanceRe Finance Inc. sold $300 million of 10-year senior notes.

Also, Freddie Mac priced a $500 million reopening of its 1.375% Reference Notes due May 1, 2020.

Market participants forecast about $15 billion of supply for the week.

The Markit CDX North American Investment Grade index firmed about 1 basis point to a spread of 59 bps.

CBS upsizes

CBS sold an upsized $900 million of senior notes (Baa2/BBB/BBB) in two tranches on Monday, according to a market source.

The company priced $400 million of 2.5% notes due Feb. 15, 2023 at a spread of Treasuries plus 85 bps.

CBS sold $500 million of 3.375% notes due Feb. 15, 2028 at a Treasuries plus 135 bps spread.

The deal was upsized from $700 million. Both tranches priced on the tight side of guidance.

BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC were the bookrunners.

The notes are guaranteed by CBS Operations Inc., according to a 424B5 filing with the Securities and Exchange Commission.

Proceeds will be used to repay at maturity the company’s $400 million of 1.95% senior notes due July 1, 2017 and for general corporate purposes, including a redemption of some or all of CBS’ $300 million of 4.625% senior notes due May 15, 2018 and the repayment of short-term borrowings, including commercial paper.

CBS is a broadcasting company based in New York.

Compass Bank prices

Compass Bank priced $750 million of 2.875% notes due June 29, 2022 (Baa3/BBB+/) on Monday at a spread of 115 bps over Treasuries, a market source said.

The notes were talked to price in the Treasuries plus 120 bps area, plus or minus 5 bps.

BofA Merrill Lynch, BBVA Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the lead managers.

Compass Bank is part of Birmingham, Ala.-based financial holding company BBVA Compass Bancshares, Inc.

Athene sells notes

Athene Global Funding sold $700 million of notes (/A-/A-) in two parts on Monday, a market source said.

The company priced $350 million of five-year floating-rate notes at Libor plus 123 bps.

Athene Global Funding sold $350 million of 3% five-year fixed-rate notes at a spread of Treasuries plus 130 bps.

Barclays, Credit Suisse Securities (USA) and Deutsche Bank Securities were the bookrunners.

Athene Global Funding is a trust established to price debt secured by funding agreements issued by Athene Annuity & Life Insurance Co. and Athene Annuity and Life Co. The companies are subsidiaries of Pembroke, Bermuda-based Athene Holding Ltd.

Voya brings $400 million

Voya Financial sold $400 million of 3.125% seven-year senior notes on Monday with a spread of Treasuries plus 120 bps, on the tight side of talk in the Treasuries plus 125 bps area, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes (Baa2/BBB/BBB) priced at 99.699 to yield 3.173%.

Citigroup Global Markets Inc., Scotia Capital (USA) Inc., Wells Fargo Securities, BNP Paribas Securities Corp. and Commerzbank Capital Markets LLC were the bookrunners.

The notes are guaranteed by Voya Holdings Inc.

Proceeds will be used to redeem a portion of the company’s senior notes due 2018.

Voya is a financial, retirement, investment and insurance company based in New York.

Indiana Michigan Power prints

Indiana Michigan Power priced $300 million of 3.75% 30-year series L fixed-rate senior notes (Baa1/A-/) on Monday at 99.304 to yield 3.789% and a spread of Treasuries plus 110 bps, according to a market source and an FWP filing with the SEC.

The notes priced on the tight side of guidance in the Treasuries plus 115 bps area, plus or minus 5 bps.

Citigroup Global Markets, MUFG, Scotia Capital (USA) Inc. and UBS Securities LLC were the bookrunners.

Proceeds will be used for the company’s construction program and other general corporate purposes.

The subsidiary of American Electric Power is based in Fort Wayne, Ind.

CBOE sells two-year notes

CBOE Holdings priced $300 million of 1.95% senior notes due June 28, 2019 (Baa1/BBB+/) on Monday at 99.93 to yield 1.986%, according to a market source and an FWP filing with the SEC.

The notes priced on the tight side of guidance at a Treasuries plus 65 bps spread.

Wells Fargo Securities, Morgan Stanley, Citigroup Global Markets and J.P. Morgan Securities were the bookrunners.

Proceeds will be used to repay outstanding borrowings under the company’s term loan facility and to invest in short-term marketable securities.

Chicago’s CBOE Holdings is the holding company for Chicago Board Options Exchange, Inc., CBOE Futures Exchange, LLC, C2 Options Exchange, Inc. and other subsidiaries.

RenaissanceRe in market

RenaissanceRe Finance sold $300 million of 3.45% 10-year senior notes (A3/A/) on Monday at 99.272 to yield 3.537%, according to a market source and an FWP filing with the SEC.

The notes priced on the tight side of guidance with a spread of 140 bps over Treasuries.

Bookrunners were Barclays and Wells Fargo Securities.

The notes are fully and unconditionally guaranteed by RenaissanceRe Holdings Ltd.

The company plans to use the proceeds for general corporate purposes.

RenaissanceRe is a Hamilton, Bermuda-based reinsurance company.

Freddie Mac reopens

Freddie Mac priced a $500 million reopening of its 1.375% Reference Notes due May 1, 2020 at 99.575 to yield 1.528% on Monday, according to a news release.

The reopening was conducted via an internet-based auction. The bid-to-cover ratio on the deal was 2.91 to 1.

The total outstanding on the issue now is $3.5 billion.

Freddie Mac is a government-backed mortgage lender based in McLean, Va.

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