Morning Commentary: Atmos Energy eyes high-grade primary; Duke Energy, Ontario on tap

By Devika Patel

Knoxville, Tenn., Sept. 25 – Primary activity in the investment-grade bond market was busy mid-week, with three new deals announced on Wednesday morning.

Dallas-based Atmos Energy Corp., a natural gas distributor and pipeline company, said it would sell fixed-rate senior notes in two tranches and Plainfield, Ind.-based Duke Energy Indiana, LLC, an electricity provider, reported plans to issue series YYY mortgage bonds due Oct. 1, 2049.

In addition, the Province of Ontario announced an offering of fixed-rate bonds.

Also, Tokyo-based Sumitomo Mitsui Financial Group Inc., a banking and financial company, sold $1.5 billion of fixed-rate senior notes in two tranches and Waltham, Mass.-based Thermo Fisher Scientific Inc., a science technology company, priced $900 million of 10-year 2.6% senior notes. Both issues priced on Tuesday.

Atmos plans notes

Atmos Energy intends to sell fixed-rate senior notes in two tranches.

The notes will have a make-whole call and then are callable at par.

Credit Agricole CIB, J.P. Morgan Securities LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used for general corporate purposes.

Duke Energy eyes bonds

Duke Energy Indiana expects to price series YYY mortgage bonds due Oct. 1, 2049.

The bonds feature a make-whole call until April 1, 2049, and then are callable at par.

BofA Securities, Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, MUFG and SunTrust Robinson Humphrey Inc. are the bookrunners.

Proceeds will be used redeem at par three series of tax-exempt bonds, to pay down intercompany short-term debt and for general company purposes.

Ontario selling bonds

The Province of Ontario plans to price an offering of fixed-rate bonds.

The bonds will have a par call.

Proceeds from the sale will be used for general provincial purposes.

Sumitomo Mitsui prices

Sumitomo Mitsui Financial sold $1.5 billion of fixed-rate senior notes in two tranches on Tuesday.

The company sold $1 billion of 2.448% five-year notes at a spread of Treasuries plus 95 basis points. These notes priced at par.

Sumitomo Mitsui Financial priced $500 million of 2.724% 10-year notes with a Treasuries plus 110 bps spread. These notes priced at par.

SMBC Nikko Securities America Inc., Goldman Sachs & Co. LLC, Citigroup Global Markets Inc. and BofA Securities were the bookrunners.

Proceeds will be used to extend unsecured loans to SMBC.

Thermo Fisher taps market

Thermo Fisher Scientific priced $900 million of 2.6% 10-year senior notes on Tuesday.

The notes were sold with a spread of Treasuries plus 97 bps. The notes priced at 99.861 to yield 2.616%.

The company also priced a €4.4 billion of notes, which included:

• €800 million of 0.125% senior notes due 2025;

• €800 million of 0.5% senior notes due 2028;

• €900 million of 0.875% senior notes due 2031;

• €900 million of 1.5% senior notes due 2039; and

• €1 billion of 1.875% senior notes due 2049.

BofA Securities, Goldman Sachs, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Barclays, JPMorgan, Mizuho Securities and U.S. Bancorp Investments Inc. were the bookrunners for the dollar-denominated offering.

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