Duke Energy, Ontario price bonds; Atmos sells two-part senior notes

By Devika Patel

Knoxville, Tenn., Sept. 25 – Primary activity in the investment-grade bond market was rather busy mid-week, with two new deals pricing on Wednesday and one new deal announced.

The Province of Ontario priced $1.25 billion of 2% 10-year bonds, and Plainfield, Ind.-based Duke Energy Indiana, LLC, an electricity provider, sold $500 million of 3.25% 30-year first mortgage bonds.

In addition, Dallas-based Atmos Energy Corp., a natural gas distributor and pipeline company, sold $800 million of senior notes in two tranches.

Also, on Tuesday, 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.

Earlier, Washington, D.C.-based Inter-American Development Bank, a provider of development financing for Latin America and the Caribbean, sold$100 million of seven-year 2.03% global notes.

Ontario prices $1.25 billion

The Province of Ontario sold $1.25 billion of 2% 10-year bonds at 99.649 to yield 2.039%.

The bonds priced with a spread of Treasuries plus 34.3 basis points.

The underwriters were BMO Capital Markets Corp., BNP Paribas Securities Corp., J.P. Morgan Securities LLC and Scotia Capital (USA) Inc.

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

Duke Energy sells $500 million

Duke Energy Indiana, LLC priced $500 million of 3.25% 30-year series YYY first mortgage bonds at a spread of 120 bps over Treasuries.

The notes priced at 97.763 to yield 3.369%.

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

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

Atmos prices $800 million

Atmos Energy priced $800 million of senior notes in two tranches.

The company priced $300 million of 2.625% 10-year notes at Treasuries plus 90 bps. The notes priced at 99.94 to yield 2.632%.

Atmos sold $500 million of 3.375% 30-year notes at a spread of 120 bps over Treasuries. These notes priced at 99.926 to yield 3.379%.

Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC, TD Securities (USA) LLC, Wells Fargo Securities LLC, CIBC World Markets Corp., MUFG and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used for general corporate purposes.

Sumitomo Mitsui prices

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

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

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

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

Proceeds will be used to extend unsecured loans to SMBC.

Thermo Fisher sells 2.6% notes

Thermo Fisher Scientific priced $900 million of 10-year 2.6% 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 euro-denominated sale 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, Inc., Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Barclays, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and U.S. Bancorp Investments Inc. were the bookrunners for the dollar-denominated offering.

Proceeds will be used to redeem the company's $750 million 6% senior notes due 2020, its €425 million 1.5% senior notes due 2020, its $400 million 5% senior notes due 2021, its $1 billion 4.5% senior notes due 2021, its $1.1 billion 3.6% senior notes due 2021 and its $800 million 3.3% senior notes due 2022.

IADB sells $100 million

The Inter-American Development Bank priced $100 million of seven-year 2.03% global notes on Sept. 19 at par.

TD Securities (USA) LLC was the dealer.

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