Royal Bank of Scotland, Ingersoll-Rand, Nutrien, Essex price notes; Florida Power in pipeline

By Cristal Cody

Tupelo, Miss., March 19 – High-grade issuers including Royal Bank of Scotland Group plc, Ingersoll-Rand Luxembourg Finance SA, Nutrien Ltd. and Essex Portfolio, LP tapped the primary market on Tuesday.

Royal Bank of Scotland priced $2 billion of fixed-to-floating-rate senior notes due 2025.

Ingersoll-Rand Luxembourg Finance brought $1.5 billion of fixed-rate senior notes in three tranches.

Nutrien priced a $1.5 billion two-part offering of fixed-rate senior notes.

Essex Portfolio priced a $150 million add-on to its 4% guaranteed senior notes due March 1, 2029 on Tuesday 7.5 basis points tighter than where the issue originally priced in February.

In other activity, Florida Power & Light Co. was offering 50-year floating-rate notes.

High-grade issuers priced more than $6 billion of bonds on Monday, led by GlaxoSmithKline Capital plc’s $3.5 billion three-tranche offering of notes.

Market sources predict about $20 billion to as much as $30 billion of deal volume this week.

Meanwhile, the reverse Yankee market continues to remain active with Nasdaq, Inc. holding fixed-income investor meetings in Europe this week ahead of an expected deal, according to a market source. Other recent issuers that have priced reverse Yankee bonds include Marsh & McLennan Cos., Inc., PepsiCo, Inc., Medtronic plc and Coca-Cola Co.

In other action on Tuesday, the Federal Reserve started a two-day monetary policy meeting that ends on Wednesday.

The Markit CDX North American Investment Grade 31 index ended mostly unchanged on the day at a spread of 57 bps.

GlaxoSmithKline’s three tranches of notes (A2/A+/) earlier were quoted about 3 bps to 6 bps better than issuance in the secondary market.

The company’s $1 billion offering of 3.375% notes due June 1, 2029, which priced at a 90 bps over Treasuries spread, firmed to the 87 bps area, a source said.

RBS prices $2 billion

Royal Bank of Scotland Group priced $2 billion of 4.269% fixed-to-floating-rate senior notes due 2025 (Baa2/BBB-/A) on Tuesday at par to yield a spread of 185 bps over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes have a fixed rate until June 22, 2024 and then will reset to a floating rate of Libor plus 176.2 bps up to but excluding maturity.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and NatWest Markets Securities Inc. were the bookrunners.

Royal Bank of Scotland Group is a banking and financial services company based in Edinburgh.

Ingersoll-Rand prints

Ingersoll-Rand Luxembourg Finance priced $1.5 billion of fixed-rate senior notes (Baa2/BBB/) in three tranches on Tuesday, according to a market source.

The company sold $400 million of 3.5% notes due March 21, 2026 at a spread of Treasuries plus 100 bps.

A $750 million tranche of 3.8% 10-year notes priced with a 120 Treasuries plus bps spread.

Ingersoll-Rand Luxembourg sold $350 million of 4.5% 30-year notes at a spread of 150 bps over Treasuries.

The notes priced on the tight side of guidance.

BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Credit Suisse Securities, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and MUFG were the bookrunners.

The notes are guaranteed by Ingersoll-Rand plc, Ingersoll-Rand Global Holding Co. Ltd., Ingersoll-Rand Lux International Holding Co. Sarl, Ingersoll-Rand Irish Holdings Unlimited Co. and Ingersoll-Rand Co.

Ingersoll-Rand is a diversified industrial company based in Dublin.

Nutrien prices $1.5 billion

Nutrien priced a $1.5 billion two-part offering of fixed-rate senior notes (Baa2/BBB/) on Tuesday, according to a market source and an FWP filing with the SEC.

The company sold $750 million of 4.2% 10-year notes at 99.677 to yield 4.24%, or a spread of 163 bps over Treasuries. The notes priced on the tight side of guidance in the Treasuries plus 165 bps area, plus or minus 2 bps.

A $750 million tranche of 5% 30-year notes priced at 99.276 to yield 5.113%. The bonds came on top of guidance with a Treasuries plus 210 bps spread.

Barclays, Goldman Sachs, Morgan Stanley, RBC Capital Markets, LLC, BMO Capital Markets Corp., CIBC World Markets Corp., Scotia Capital (USA) Inc. and TD Securities (USA) LLC were the lead managers.

Nutrien is a fertilizer manufacturer based in Saskatoon, Saskatchewan.

Essex Portfolio reopens notes

Essex Portfolio priced a $150 million reopening of its 4% guaranteed senior notes due March 1, 2029 (Baa1/BBB+/BBB+) on Tuesday at 100.717 to yield 3.91%, or a spread of 130 bps over Treasuries, according to an FWP filing with the SEC.

The company originally sold $350 million of the notes on Feb. 4 at 99.188 to yield 4.099%, or a spread of Treasuries plus 137.5 bps. The total outstanding is now $500 million.

JPMorgan, Citigroup, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, Jefferies LLC and MUFG were the bookrunners.

Essex Property Trust, Inc. guarantees the notes.

Palo Alto, Calif.-based Essex Portfolio is a real estate investment trust.

Florida Power eyes deal

Florida Power & Light plans to price floating-rate notes series due March 27, 2069 with a coupon of Libor minus 30 bps, according to a 424B5 filing with the SEC.

The rate will be reset quarterly beginning March 27, 2019.

UBS Securities LLC, Morgan Stanley, BofA Merrill Lynch, Citigroup, Deutsche Bank, JPMorgan, RBC Capital Markets and Wells Fargo Securities are the bookrunners.

Florida Power & Light is a Juno Beach, Fla.-based electric utility.

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