Ecolab, AerCap, Avangrid, Ameren Illinois, Main Street Capital price; credit spreads firm

By Cristal Cody

Tupelo, Miss., Nov. 16 – Investment-grade issuance remained steady over Thursday’s session.

Ecolab Inc. came with two tranches of senior notes in an upsized $825 million offering.

AerCap Ireland Capital DAC and AerCap Global Aviation Trust sold $800 million of long seven-year guaranteed senior notes.

Avangrid, Inc. priced $600 million of seven-year senior notes.

Ameren Illinois Co. tapped the primary market with a $500 million offering of 30-year first mortgage bonds.

Main Street Capital Corp. sold $185 million of five-year notes.

In addition, Andeavor Logistics LP/Tesoro Logistics Finance Corp. and Huntington Ingalls Industries, Inc. were offering senior notes.

Credit spreads improved over the session. The Markit CDX North American Investment Grade 29 index firmed about 2 basis points to a spread of 55 bps.

Ecolab prices $825 million

Ecolab priced $825 million of senior notes (Baa1/A-/) in two parts in the Rule 144A and Regulation S offering, a source said.

The company sold $500 million of 3.25% 10-year notes at a spread of Treasuries plus 93 bps. The notes priced tighter than talk in the Treasuries plus 100 bps area.

Ecolab priced an upsized $325 million of 3.95% 30-year notes with a Treasuries plus 118 bps spread. The bonds were upsized by $25 million and priced tighter than guidance in the Treasuries plus 125 bps spread area.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, MUFG and J.P. Morgan Securities LLC were the lead managers.

Ecolab is a St. Paul-based provider of water, hygiene and energy technologies and services.

AerCap in primary

AerCap Ireland Capital and AerCap Global Aviation Trust sold $800 million of 3.5% guaranteed senior notes due Jan. 15, 2025 (Baa3/BBB-/BBB-) at 99.44 to yield 3.59%, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced on top of guidance at a spread of Treasuries plus 135 bps.

The bookrunners were Barclays, Mizuho Securities USA Inc., RBC Capital Markets, LLC, Santander Investment Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets, Credit Agricole CIB, Credit Suisse Securities, Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., J.P. Morgan Securities, BofA Merrill Lynch, Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC.

The notes are guaranteed by AerCap Holdings NV.

AerCap is an independent aircraft leasing company based in Amsterdam.

Avangrid sells $600 million

Avangrid priced $600 million of 3.15% senior notes due Dec. 1, 2024 (Baa1/BBB/BBB+) on Thursday at 99.762 to yield 3.188%, according to an FWP filing with the SEC.

The green bonds priced at a spread of 95 bps over Treasuries.

Citigroup Global Markets, BBVA Securities Inc., BNP Paribas Securities, Wells Fargo Securities, Deutsche Bank Securities, Drexel Hamilton LLC and Williams Capital Group LP were the bookrunners.

Avangrid is a utility based in New Haven, Conn. Its eight electric and natural gas utilities service customers in New York and New England.

Ameren Illinois prices

Ameren Illinois sold $500 million of 3.7% 30-year first mortgage bonds (A1/A/) at a spread of Treasuries plus 93 bps on Thursday, according to a market source and an FWP filing with the SEC.

The bonds (A1/A/) tightened in from initial price talk in the Treasuries plus 105 bps area.

The bonds were sold at 99.282 to yield 3.74%.

J.P. Morgan Securities, Mizuho Securities, MUFG, BNP Paribas Securities, KeyBanc Capital Markets Inc., SunTrust Robinson Humphrey and TD Securities (USA) LLC were the bookrunners.

Ameren Illinois is a subsidiary of St. Louis-based electric and natural gas company Ameren Corp.

Main Street sells notes

Main Street Capital sold $185 million of 4.5% five-year notes (/BBB/) on Thursday at 99.156 to yield 4.69%, or a spread of Treasuries plus 262.5 bps, according to a press release and a 497AD filing with the SEC.

The bookrunners were RBC Capital Markets, Goldman Sachs and Raymond James & Associates, Inc.

The company is a Houston-based principal investment firm that provides debt and equity capital to middle-market companies.

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