Deal action heavy; ITC, Duke, Entergy, Interstate Power, CNH, Brandywine, Buckeye price bonds

By Cristal Cody

Tupelo, Miss., Nov. 9 – Issuers flooded the high-grade primary market during Thursday’s session.

Borrowers including ITC Holdings Corp., Alexandria Real Estate Equities, Inc., Duke Energy Carolinas LLC, Entergy Mississippi, Inc., Interstate Power and Light Co., CNH Industrial NV, Brandywine Operating Partnership, LP, Buckeye Partners, LP, American Financial Group, Inc. and United Parcel Service, Inc. priced bonds.

The Markit CDX North American Investment Grade 29 index eased about 1 basis point to a spread of 56 bps.

ITC raises $1 billion

ITC Holdings (Baa2/A-/) priced $1 billion of senior notes in two tranches due 2022 and 2027 on Thursday, according to a company news release.

The company sold $500 million of 2.7% five-year notes and $500 million of 3.35% 10-year notes.

Additional pricing details were not immediately available.

Proceeds from the private Rule 144A and Regulation S offering will be used to fully redeem ITC’s $385 million of 6.05% senior notes due Jan. 31, 2018, to repay outstanding debt under the company’s term loan, revolving credit agreement and commercial paper program and for general corporate purposes.

ITC is an electricity transmission company based in Novi, Mich.

Alexandria Real Estate prices

Alexandria Real Estate Equities priced $600 million of 3.45% guaranteed senior notes due April 30, 2025 on Thursday at 99.813 to yield 3.479%, according to an FWP filing with the Securities and Exchange Commission.

The notes (Baa2/BBB/) priced with a Treasuries plus 128 bps spread.

Mizuho Securities USA Inc., BBVA Securities Inc., J.P. Morgan Securities LLC, Evercore Group LLC and TD Securities (USA) LLC were the bookrunners.

The notes will be guaranteed by Alexandria Real Estate Equities, LP.

Proceeds will be used to repay $211.3 million of floating-rate secured notes due Aug. 23, 2018 and $177.7 million of floating-rate secured notes due April 20, 2019 and for general corporate purposes, including reducing debt under the company’s unsecured senior line of credit.

Pasadena, Calif.-based Alexandria Real Estate Equities is a real estate investment trust focused on life science and technology campuses.

Brandywine in primary

Brandywine Operating Partnership sold $550 million of guaranteed notes (Baa3/BBB-/) in two tranches on Thursday, according to an FWP filing with the SEC.

The company priced $100 million in a reopening of its 3.95% notes due Feb. 15, 2023 at 102.497 to yield 3.402%, or a spread of Treasuries plus 140 bps.

Brandywine originally priced $250 million of the notes on Dec. 12, 2012 at 99.273 to yield 4.037%, or a Treasuries plus 235 bps spread. The total outstanding now is $350 million.

The company also sold $450 million of 3.95% new 10-year notes at 99.25 to yield 4.042% and a Treasuries plus 170 bps spread.

Citigroup Global Markets Inc., BofA Merrill Lynch, Barclays and RBC Capital Markets, LLC were the bookrunners.

The securities are guaranteed by Brandywine Realty Trust.

Proceeds will be used to fund a concurrent cash tender offer for all of the company’s 4.95% guaranteed notes due 2018, for the redemption of any notes that are not tendered and to repay debt under the company’s unsecured revolving credit facility.

The real estate investment trust for office and industrial properties is based in Radnor, Pa.

Duke Energy brings bonds

Duke Energy Carolinas priced $550 million of 3.7% 30-year first mortgage bonds (Aa2/A/) on Thursday at a spread of Treasuries plus 90 bps, according to an FWP filed with the SEC.

The bonds priced at 99.854 to yield 3.708%.

BNP Paribas Securities Corp., Citigroup Global Markets, Scotia Capital (USA) Inc., TD Securities (USA) and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to refinance $400 million of the company’s 5.25% first and refunding mortgage bonds due Jan. 15, 2018, to pay down intercompany short-term debt under the company’s money-pool borrowing arrangement with Duke Energy Corp. and for general company purposes.

The Charlotte, N.C.-based subsidiary of Duke Energy Corp. generates, transmits, distributes and sells electricity.

CNH sells $500 million

CNH Industrial priced $500 million of 3.85% 10-year senior notes (/BBB-/BBB-) on Thursday at a spread of 158 bps over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at 99.384 to yield 3.925%.

J.P. Morgan Securities, BofA Merrill Lynch, Wells Fargo Securities, BBVA Securities and Natixis Securities Americas LLC were the bookrunners.

Proceeds will be used for working capital and other general corporate purposes.

CNH is a Basildon, England, manufacturer of machinery and vehicles.

Buckeye Partners prints

Buckeye Partners priced $400 million of 4.125% 10-year senior notes on Thursday at a spread of Treasuries plus 185 bps, according to an FWP filed with the Securities and Exchange Commission.

The notes (Baa3/BBB-/BBB-) came to market at 99.503 to yield 4.186%.

Barclays, PNC Capital Markets LLC, SunTrust Robinson Humphrey Inc., BB&T Capital Markets, BNP Paribas Securities Corp., Morgan Stanley & Co. LLC and SMBC Nikko Securities America, Inc. were the bookrunners.

Proceeds will be used to redeem all $300 million of the company’s 6.05% notes due Jan. 15, 2018 and to repay debt under its revolving credit facility.

The refined petroleum products pipeline system is based in Houston.

Interstate Power reopens

Interstate Power and Light priced a $250 million add-on to its 3.25% senior debentures due Dec. 1, 2024 (Baa1/A-/) on Thursday at 100.957 to yield 3.093%, according to an FWP filing with the SEC.

The bonds priced with a spread of Treasuries plus 75 bps.

BNY Mellon Capital Markets LLC, Mizuho Securities USA Inc. and Wells Fargo Securities were the bookrunners.

The company originally sold $250 million of the notes in an offering on Nov. 17, 2014 at 99.255 to yield 3.338%, or Treasuries plus 100 bps. The total outstanding is now $500 million.

Proceeds will be used to reduce commercial paper, to reduce capital under the company’s receivables purchase and sale program and for general corporate purposes.

The electric and natural gas subsidiary of Alliant Energy Corp. is based in Cedar Rapids, Iowa.

Entergy Mississippi sells 10-year bonds

Entergy Mississippi sold $150 million of 3.25% 10-year first mortgage bonds (A2/A/) on Thursday at 99.659 to yield 3.29%, according to an FWP filing with the SEC.

The bonds priced with a spread of 95 bps over Treasuries.

Morgan Stanley and SMBC Nikko were the bookrunners.

Proceeds will be used for general corporate purposes.

Entergy Mississippi is a subsidiary of New Orleans-based power provider Entergy Corp.

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