Cheniere, Vistra, Equinix, Healthpeak, Ryder, SEK price; AbbVie markets multiple-tranche deal

By Cristal Cody

Tupelo, Miss., Nov. 6 – Investment-grade supply revved up on Wednesday with deals in the corporate and sovereign, supranational and agency primary markets.

Cheniere Energy, Inc. subsidiary Cheniere Corpus Christi Holdings, LLC priced an upsized $1.5 billion of split-rated 10-year senior secured notes.

Vistra Energy Corp. subsidiary Vistra Operations Co. LLC sold $1.1 billion of split-rated senior secured notes in two parts.

Healthpeak Properties, Inc. brought $750 million of 10-year senior notes to the high-grade primary market.

Ryder System, Inc. sold $400 million of seven-year medium-term notes.

In addition, Swedish Export Credit Corp. priced $1.25 billion of three-year registered global notes.

Meanwhile, focus in the high-grade bond market swung to a multiple-tranche senior note deal that was launched on Wednesday from AbbVie Inc. to fund its acquisition of Allergan plc.

Elsewhere, coming up on Thursday, the Federal Home Loan Bank System plans to price price a new two-year global note.

More than $20 billion of investment-grade corporate and sovereign, supranational and agency bonds have priced week to date.

About $25 billion to $30 billion of volume was expected by market sources for the week.

Energy bond offerings have picked up this week with deals also from Shell International Finance BV, Xcel Energy Inc., Commonwealth Edison Co., Baker Hughes, a GE co., LLC and co-issuer Baker Hughes Co-Obligor, Inc and Consolidated Edison Co. of New York, Inc.

The Markit CDX North American Investment Grade 33 index was flat on the day at a spread of 51.8 basis points.

Equinix prices $2.8 billion

Equinix priced $2.8 billion of split-rated fixed-rate senior notes (Ba1/BBB-/BBB-) in three parts on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

A $1 billion tranche of 2.625% five-year notes priced at par to yield a spread of 100 bps over Treasuries.

Equinix sold $600 million of 2.9% seven-year notes at 99.855 to yield 2.923%. The notes priced with a Treasuries plus 120 bps spread.

Finally, $1.2 billion of 3.2% 10-year notes priced at 99.898 to yield 3.212%, or a spread of 140 bps over Treasuries.

Joint bookrunners were Goldman Sachs & Co. LLC, BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.

Equinix is a Redwood City, Calif.-based data center company.

Cheniere raises $1.5 billion

Cheniere Corpus Christi Holdings priced an upsized $1.5 billion of 10-year senior secured notes (Ba1/BBB-/BBB-) on Wednesday at 99.925 to yield 3.709%, according to a market sources and a news release.

The notes priced on the tight side of guidance at a spread of 190 bps over Treasuries.

The Rule 144A and Regulation S deal was upsized from $1 billion.

BofA Securities, Goldman Sachs, ING Financial Markets LLC and Scotia Capital (USA) Inc. were the bookrunners.

Cheniere Energy is a Houston-based energy company.

Vistra sells two tranches

Vistra Operations priced $1.1 billion of senior secured notes (Ba1/BBB-/BBB-) in two tranches on top of guidance but better than initial talk on Wednesday, according to a market source and news release.

A $300 million add-on to the company’s 3.55% notes due July 15, 2024 priced at 101.782 and a spread of 150 bps over Treasuries.

The original $1.2 billion tranche was priced June 4 at 99.807 and a Treasuries plus 170 bps spread. The total outstanding is now $1.5 billion.

Vistra Operations sold $800 million of new 3.7% notes due Jan. 30, 2027 at 99.789 and with a Treasuries plus 200 bps spread.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets, JP Morgan Securities, Morgan Stanley & Co. LLC and MUFG were the joint bookrunners for the Rule 144A and Regulation S offer.

The integrated power company is based in Irving, Texas.

Ryder System prints

Ryder System priced $400 million of 2.9% seven-year medium-term notes at 99.948 and a spread of 118 bps over Treasuries on Wednesday, according to a market source and a 424B3 filed with the SEC.

The notes (Baa1/BBB+/A-) were initially talked to price with a spread in the 140 bps area.

BNP Paribas Securities Corp., BofA Securities, Mizuho Securities USA Inc., Morgan Stanley and RBC Capital Markets LLC were the bookrunners.

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

Healthpeak Properties prices

Healthpeak Properties sold $750 million of 3% senior notes due Jan. 15, 2030 (Baa1/BBB+/BBB+) on Wednesday at a spread of 123 bps over Treasuries, according to an FWP filing.

The notes priced at 99.64 to yield 3.041%.

Bookrunners were Wells Fargo Securities LLC, J.P. Morgan Securities, Credit Agricole Securities (USA) Inc., RBC Capital Markets, Credit Suisse Securities, Mizuho Securities and Scotia Capital.

Based in Irvine, Calif., Healthpeak is a real estate investment trust that owns and develops health care real estate within the United States.

Swedish Export brings $1.25 billion

Swedish Export Credit sold $1.25 billion of 1.625% three-year registered global notes (Aa1/AA+/) on Wednesday at 99.691 to yield 1.731%, according to a market source and an FWP filing.

The notes priced at mid-swaps plus 13 bps, or a spread of 13.45 bps over Treasuries.

Initial price talk was in the mid-swaps plus 15 bps area.

Citigroup Global Markets Ltd., Credit Agricole Securities, Merrill Lynch International, Nomura Securities International, plc, MUFG and Tokai Tokyo Securities Europe Ltd. were the bookrunners.

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

AbbVie in deal pipeline

Meanwhile, AbbVie will hold fixed income investor calls on Thursday and Friday for a Rule 144A and Regulation S private offering of senior notes (Baa2/A-/), according to a market source and a company news release.

Market sources estimate the deal size in the $20 billion to $30 billion area.

The offering is expected to include eight dollar-denominated tranches with maturities of 1.5, two, three, five, seven and 10 years.

BofA Securities, Barclays and Morgan Stanley are the lead managers.

AbbVie is a biopharmaceutical company based in North Chicago, Ill.

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