MPLX prices $5.5 billion deal; Rogers Communications prints notes; deal pipeline builds

By Cristal Cody

Tupelo, Miss., Feb. 5 – MPLX LP led deal action in the high-grade bond market on Monday with a $5.5 billion five-tranche offering of senior notes.

Rogers Communications Inc. also tapped the primary market with $750 million of 30-year senior notes.

Deal action is expected to remain strong over the week, though stocks continued to slide and investment-grade credit spreads softened on Monday.

The Markit CDX North American Investment Grade 29 index closed on Monday 4 basis points wider at a spread of 54 bps.

About $25 billion of total corporate issuance is expected by market sources for the week.

Coming up on Tuesday, several issuers, including the Council of Europe Development Bank, European Investment Bank and the Province of Ontario, are expected to price new bonds.

MPLX prices $5.5 billion

MPLX priced a $5.5 billion five-tranche offering of fixed-rate senior notes (Baa3/BBB/BBB-) on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $500 million of 3.375% five-year notes at 99.931 to yield 3.389%, or a spread of Treasuries plus 90 bps.

MPLX priced $1.25 billion of 4% 10-year notes at 99.551 to yield 4.054%. The notes priced with a spread of Treasuries plus 130 bps.

MPLX sold $1.75 billion of 4.5% 20-year notes at 98.811 to yield 4.59%, or a Treasuries plus 155 bps spread.

The $1.5 billion tranche of 4.7% 30-year notes were placed at 99.348 to yield 4.74%, or a spread of Treasuries plus 170 bps.

MPLX also sold $500 million of 4.9% 40-year notes at 99.289 to yield 4.94%, or a Treasuries plus 190 bps spread.

The five- and 40-year tranches priced better than talk, while the remaining tranches priced on the tight side of guidance.

BofA Merrill Lynch, Barclays and Mizuho Securities USA Inc. were the joint global coordinators and bookrunners.

J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets, LLC., BNP Paribas Securities Corp., Goldman Sachs & Co., PNC Capital Markets LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, UBS Securities LLC and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to repay the principal and interest on the company’s $4.1 billion term loan, to repay borrowings under its revolving credit facility and the MPC intercompany loan agreement and for general partnership purposes.

MPLX is a Findlay, Ohio-based owner, operator and developer of crude oil pipeline and midstream assets in the United States.

Rogers sells $750 million

Rogers Communications sold $750 million of 4.3% 30-year senior notes at a spread of 125 bps over Treasuries on Monday, according to an FWP filing with the Securities and Exchange Commission.

The notes (Baa1/BBB+/BBB+) priced at 99.398 to yield 4.336%.

BofA Merrill Lynch, J.P. Morgan Securities, RBC Capital Markets, BMO Capital Markets Corp., MUFG and TD Securities (USA) LLC were the bookrunners.

The notes are guaranteed by Rogers Communications Canada Inc.

Proceeds will be used for general corporate purposes.

Rogers Communications is a Toronto-based communications and media company.

Council of Europe offers notes

The Council of Europe Development Bank (Aa1/AA+/AA+) plans to price $1 billion of five-year senior global notes on Tuesday, according to a market source.

The notes were initially talked to price with a spread in the mid-swaps plus 14 bps area.

Goldman Sachs International, HSBC Bank plc, Nomura Securities International, Inc. and Toronto-Dominion Bank are the lead managers.

The Paris-based Council of Europe Development Bank finances social projects to member states, financial institutions and local authorities for projects including public infrastructure and low-income housing.

EIB markets notes

The European Investment Bank (Aaa/AAA/AAA) intends to price a new benchmark-sized offering of long three-year global notes on Tuesday, according to a market source.

Guidance on the notes due May 13, 2021 was in the mid-swaps plus 3 bps area.

Citigroup Global Markets Ltd., J.P. Morgan Securities plc and RBC Capital Markets are the lead managers.

The lender for the European Union is based in Kirchberg, Luxembourg.

Ontario eyes three-year issue

The Province of Ontario (Aa2/AA-/) is expected to price a U.S. dollar-denominated offering of three-year global notes on Wednesday, a market source said.

The notes were initially talked to price with a spread in the mid-swap plus 16 bps area.

Barclays, BofA Merrill Lynch, BMO Capital Markets and Morgan Stanley & Co. LLC are the bookrunners.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.