Broadcom, Sabine, NextEra, Barclays, Clorox, Ryder, W.R. Berkley price; deal pipeline fills

By Cristal Cody

Tupelo, Miss., May 5 – The high-grade primary market remained busy over Tuesday’s session with more than $15 billion of new bonds pricing.

Broadcom Inc. sold $8 billion of senior notes in four tranches in the day’s biggest deal.

Cheniere Energy Partners, LP subsidiary Sabine Pass Liquefaction, LLC priced $2 billion of 10-year senior secured notes.

NextEra Energy Capital Holdings Inc. priced $2 billion of 10-year guaranteed debentures.

Barclays Bank plc sold $1.75 billion of two-year senior notes.

Clorox Co. priced $500 million of 10-year senior notes.

QBE Insurance Group Ltd. tapped the primary market with $500 million of perpetual additional tier 1 contingent convertible capital securities.

Ryder System, Inc. priced an upsized $400 million of medium-term notes due Sept. 1, 2025.

Also, W.R. Berkley Corp. sold $300 million of 30-year senior notes.

The new issues bring week to date volume to more than $37 billion.

More than $22 billion of investment-grade bonds were priced on Monday, led by Apple Inc.’s $8.5 billion four-part offering of notes.

About $60 billion to $75 billion of volume is expected by market participants this week.

Coming up on Wednesday, Swedish Export Credit Corp. plans to tap the primary market with a dollar-denominated offering of five-year senior notes.

In addition, HSBC Bank Canada is in the deal pipeline with a Rule 144A and Regulation S offering of dollar-denominated three-year covered bonds.

The Markit CDX North American Investment Grade 33 index tightened nearly 2 basis points on Tuesday to a spread of 88.93 bps.

In the secondary market, Apple’s new paper (Aa1/AA+/) traded about 4 bps to 9 bps tighter than issuance, a source said.

Apple’s 1.65% notes due May 11, 2030 were seen at 106 bps area. The notes priced in a $1.75 billion tranche at 99.296 to yield 1.727% and a Treasuries plus 110 bps spread.

The 10-year notes were talked at the 130 bps spread area.

Broadcom brings $8 billion

Broadcom priced $8 billion of senior notes (Baa3/BBB-/BBB-) in four tranches in the Rule 144A and Regulation S offering on Tuesday, according to a market source.

A $1 billion tranche of 2.25% notes due Nov. 15, 2023 priced at a spread of Treasuries plus 200 bps.

Initial talk was in the 225 bps spread area.

Broadcom sold $2.25 billion of 3.15% notes due Nov. 15, 2025 at a Treasuries plus 280 bps spread, versus initial talk in the 295 bps spread area.

The company sold $2.75 billion of 4.15% notes due Nov. 15, 2030 at a Treasuries plus 350 bps spread.

Initial price talk was in the 365 bps over Treasuries area.

A $2 billion tranche of 4.3% notes due Nov. 15, 2032 priced with a spread of 365 bps over Treasuries.

The notes were initially guided at the 380 bps spread area.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.

The notes will be guaranteed by certain Broadcom subsidiaries.

Broadcom is a San Jose, Calif.-based semiconductor manufacturer and infrastructure software developer.

Sabine Pass prices $2 billion

Sabine Pass Liquefaction priced $2 billion of 4.5% 10-year senior secured notes (Baa3/BBB-/BBB-) on Tuesday at a spread of 387.5 bps over Treasuries, according to a market source.

Initial price talk was in the Treasuries plus 450 bps area.

Bookrunners were J.P. Morgan, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC and MUFG.

The company held fixed income investor calls on Monday.

Sabine Pass Liquefaction develops, constructs and operates natural gas liquefaction facilities at the Sabine Pass LNG terminal in Cameron Parish, La.

NextEra Energy raises $2 billion

NextEra Energy Capital priced $2 billion of 2.25% 10-year guaranteed debentures (Baa1/BBB+/A-) on Tuesday at 99.963 to yield 2.254%, or a spread of Treasuries plus 160 bps, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes were initially talked to print with a spread in the 162.5 bps area.

BofA Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan, Morgan Stanley, RBC Capital Markets, LLC, Barclays, BNY Mellon Capital Markets LLC, BMO Capital Markets Corp., Citigroup, Goldman Sachs & Co. LLC, Mizuho, MUFG, PNC Capital Markets LLC, Regions Securities LLC, Santander Investment Securities Inc., SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo were the bookrunners.

Parent company NextEra Energy, Inc. will guarantee the notes.

The energy company is based in Juno Beach, Fla.

Barclays Bank prints $1.75 billion

Barclays Bank (A1/A/A) sold $1.75 billion of 1.7% two-year senior notes at a spread of Treasuries plus 155 bps on Tuesday, according to a market source.

Initial price talk was in the 200 bps over Treasuries area.

Barclays was the bookrunner.

Barclays Bank is a banking and financial services company based in London.

Clorox taps primary

Clorox priced $500 million of 1.8% 10-year senior notes (Baa1/A-) on Wednesday at 99.109 to yield 1.898% and a spread of Treasuries plus 125 bps, tighter than initial talk in the Treasuries plus 170 bps area, according to a market source and FWP filing.

The bookrunners were Citigroup, Goldman Sachs, J.P. Morgan, Morgan Stanley and Wells Fargo.

The manufacturer and marketer of consumer and professional products is based in Oakland, Calif.

QBE sells tier 1 paper

QBE Insurance Group priced $500 million of 5.875% five-year perpetual additional tier 1 contingent convertible capital securities (Baa2/BBB-/) on Tuesday, according to a market source.

Initial price talk was at the 6.5% area.

The interest rate will reset after the fixed-rate period to Treasuries plus 551.3 bps.

The notes are callable on May 12, 2025.

Citigroup, HSBC Securities and J.P. Morgan were the active bookrunners. Credit Agricole Securities (USA) Inc. was the passive bookrunner.

The global insurer is based in Sydney, Australia.

Ryder System upsizes

Ryder System priced an upsized $400 million of 3.35% medium-term notes due Sept. 1, 2025 (Baa1/BBB+/A-) at 99.931 and a spread of 300 bps over Treasuries on Tuesday, according to a market source and a 424B3 filing.

Initial talk was in the 330 bps over Treasuries area with price guidance tightened to the 305 bps area, plus or minus 5 bps.

The offering was upsized from $300 million.

BNP Paribas Securities Corp., BofA Securities, Mizuho, RBC Capital Markets and SunTrust Robinson were the bookrunners.

Ryder System is a Miami-based truck rental and fleet management company.

W.R. Berkley sells notes

W.R. Berkley priced $300 million of 4% 30-year senior notes (Baa1/BBB+/A-) on Tuesday at a spread of Treasuries plus 270 bps, according to a market source.

Initial price talk was in the Treasuries plus 312.5 bps area with price guidance firmed to the 275 bps area, plus or minus 5 bps.

BofA Securities, Credit Suisse, J.P. Morgan and Morgan Stanley were the bookrunners.

W.R. Berkley is a Greenwich, Conn.-based insurance holding company.

Swedish Export Credit on deck

Swedish Export Credit plans to price a dollar-denominated offering of five-year senior notes (Aa1/AA+/) on Wednesday, according to a market source.

Initial price talk is in the mid-swaps plus 35 bps area.

Barclays, Goldman Sachs, RBC Capital Markets and Scotia Capital (USA) Inc. are the bookrunners.

Swedish Export Credit is a Stockholm-based government-owned financial services company for the Swedish export industry.

HSBC Bank Canada in pipeline

HSBC Bank Canada plans to price a Rule 144A and Regulation S offering of dollar-denominated three-year covered bonds (Aaa//AAA), according to a market source on Tuesday.

The bookrunners are CIBC World Markets Corp., Danske Markets Inc., HSBC Securities, Landesbank Baden-Wurttemberg, Natixis Securities Americas LLC, Rabobank, RBC Capital Markets and Santander.

The Vancouver, B.C.-based firm is the Canadian subsidiary of London-based banking and financial services group HSBC Holdings plc.

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