NiSource, Ontario, Toyota, Verizon, Citigroup, United Parcel Service price; Verizon tightens

By Cristal Cody

Tupelo, Miss., May 11 – Nearly $10 billion of high-grade bonds priced over Thursday’s session from issuers that included Verizon Communications Inc., Toyota Motor Credit Corp. and United Parcel Service, Inc.

The largest corporate deal on Thursday was priced by NiSource, Inc. subsidiary NiSource Finance Corp., which sold a $2 billion two-tranche offering of guaranteed fixed-rate notes.

The Province of Ontario also brought $2 billion of 2.25% five-year global notes on Thursday at mid-swaps plus 29 basis points, in line with guidance in the mid-swaps plus high 20 bps area.

In other corporate issuance, Verizon Communications priced $1.5 billion of three-year floating-rate notes.

Citigroup Inc. came with $1.5 billion of seven-year floating-rate notes.

Toyota Motor Credit sold $1.25 billion of one-year floating-rate notes on Thursday.

UPS brought $1 billion of five-year notes in two tranches to the primary market.

Willis North America Inc. priced $650 million of seven-year guaranteed senior notes.

The Markit CDX North American Investment Grade index closed the day mostly unchanged at a spread of 62 bps.

In the secondary market, Verizon’s 4.124% notes due March 16, 2027 that priced in March traded 4 bps better.

NiSource sells $2 billion

NiSource Finance sold $2 billion of guaranteed fixed-rate notes (Baa2/BBB+/BBB) in two tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.

The $1 billion tranche of 3.49% 10-year notes priced at 99.984 to yield 3.492%, or 110 bps over Treasuries.

The company sold $1 billion of the 4.375% 30-year notes at 99.918 to yield 4.38%. The notes priced with a spread of Treasuries plus 135 bps.

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

Proceeds will be used to repurchase the company’s 6.125% notes due 2022, up to $175 million of its 6.4% notes due 2018, up to $200 million of its 6.8% notes due 2019 and up to $220 million of its 5.45% notes due 2020 and for general corporate purposes.

The securities are guaranteed by Merrillville, Ind., parent NiSource, a company with businesses in natural gas transmission, storage and distribution, and electricity generation, transmission and distribution.

Ontario taps primary

Ontario sold $2 billion of 2.25% five-year global notes on Thursday at 99.864 to yield 2.279%, according to an FWP filing with the SEC.

The notes (Aa2/A+/AA-) priced at mid-swaps plus 29 bps, or Treasuries plus 35.6 bps. The notes were talked to price in the mid-swaps plus high 20 bps area, according to a market source.

Barclays, CIBC World Markets Inc., Goldman Sachs & Co. and JPMorgan were the lead managers.

Proceeds will be used for general provincial purposes.

Verizon prices floaters

Verizon Communications (Baa1/BBB+/A-) sold $1.5 billion of three-year floating-rate notes on Thursday at par to yield Libor plus 55 bps, according to an FWP filing with the SEC.

RBC Capital Markets LLC, Wells Fargo, Samuel A. Ramirez & Co., Inc. and Williams Capital Group, LP were the underwriters.

The company intends to use the proceeds for general corporate purposes, which may include the repayment of outstanding debt.

Verizon is a New York City-based telecommunications company.

Citi prints $1.5 billion

Citigroup (Baa1/BBB+/A) priced $1.5 billion of seven-year floating-rate notes on Thursday at par to yield Libor plus 110 bps, according to a market source.

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

The deal saw strong demand with a final book size of $2.8 billion.

Citigroup was the bookrunner.

The notes are non-callable for six years.

Citigroup is a financial services company based in New York.

Toyota sells floaters

Toyota Motor Credit priced $1.25 billion of series B floating-rate medium-term notes due May 17, 2018 (Aa3/AA-) at par to yield Libor plus 8 bps on Thursday, according to an FWP filing with the SEC.

BofA Merrill Lynch, RBC Capital Markets and Toyota Financial Services Securities USA Corp. were the lead managers.

Toyota Motor Credit is a Torrance, Calif.-based financing arm and subsidiary of Toyota Motor Corp.

UPS raises $1 billion

United Parcel Service priced $1 billion in a two-part offering of five-year notes (A1/A+) on Thursday, according to an FWP filing with the SEC.

UPS sold $400 million of five-year floating-rate notes at par to yield Libor plus 38 bps.

The company sold $600 million of 2.35% five-year fixed-rate notes at 99.859 to yield 2.38%, or a spread of Treasuries plus 45 bps.

Barclays, Goldman Sachs, Morgan Stanley & Co. LLC, UBS Securities LLC, Citigroup, JPMorgan, BofA Merrill Lynch and Wells Fargo were the bookrunners.

Proceeds from the offering will be used to repay commercial paper and for general corporate purposes.

The package delivery and supply chain management company is based in Atlanta.

Willis North America prices

Willis North America priced a $650 million offering of 3.6% seven-year guaranteed senior notes (Baa3/BBB/BBB) on Thursday at a spread of Treasuries plus 140 bps, according to an FWP filing with the SEC.

The notes priced at 99.914 to yield 3.614%.

Barclays, JPMorgan, BofA Merrill Lynch, HSBC Bank plc, MUFG, PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc. and Wells Fargo were the bookrunners.

Proceeds will be used to pay down borrowings under the company’s revolving credit facility, to repay its notes due March 28, 2017, to pay down borrowings under its original term loan facility and original revolving credit facility and for general corporate purposes.

The company is a subsidiary of Willis Towers Watson plc, a London-based global risk adviser and insurance and reinsurance broker.

Verizon firms

Verizon’s 4.124% notes due March 16, 2027 (Baa1/BBB+/A-) tightened 4 bps in secondary trading on Thursday to 150 bps bid, according to a market source.

The $3.25 billion tranche of 10-year notes priced on March 13 at Treasuries plus 160 bps.

Verizon is a New York City-based telecommunications company.

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