EQT, Nippon, American Campus, Japan Bank tap primary market; Ontario, Japan Bank plan deals

By Cristal Cody

Tupelo, Miss., Jan. 15 – New investment-grade supply on Wednesday included bond deals from EQT Corp., Nippon Life Insurance Co., American Campus Communities Operating Partnership LP and Japan Bank for International Cooperation.

EQT priced $1.75 billion of split-rated senior notes in two tranches better than initial talk.

Nippon Life Insurance placed $1.15 billion of 30-year subordinated notes tighter than talk.

American Campus Communities Operating Partnership sold $400 million of 10-year guaranteed senior notes better than initial guidance.

Also, Japan Bank for International Cooperation priced $2.25 billion of three-year guaranteed bonds 5 basis points tighter than initial talk.

Coming up on Thursday, the Province of Ontario plans to price a dollar-denominated offering of three-year global notes.

Meanwhile, Japan Finance Organization for Municipalities intends to market a dual currency bond offering with a roadshow.

Week to date, deal volume totals more than $23 billion.

Bank and financial investment-grade supply was anticipated by market sources following the release of fourth quarter earnings this week.

JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. announced registered preferred share offerings on Wednesday following the release of profit results on Tuesday.

On Wednesday, Bank of America Corp., BB&T Corp., U.S. Bancorp and Goldman Sachs Group Inc. reported earnings. SunTrust Banks Inc., Bank of New York Mellon Corp. and Morgan Stanley will post earnings reports on Thursday.

About $30 billion to $35 billion of bond supply was expected this week, according to syndicate sources.

The Markit CDX North American Investment Grade 33 index closed slightly tighter at a spread of 44.61 bps from 44.72 bps on Tuesday.

In the secondary market, bank and financial paper was seen on average about 1 bp to 4 bps tighter on the day, a source said.

New issues have traded mostly stronger, a market source said.

Owl Rock Capital Corp.’s $500 million of 3.75% senior notes due July 22, 2025 (Baa3/BBB-/BBB-) priced in the previous session tightened 6 bps in secondary trading.

The New York-based middle-market debt and equity asset management company sold the notes on Tuesday at 99.626 to yield 3.826%, or a spread of Treasuries plus 220 bps.

Initial price talk was in the Treasuries plus 225 bps spread area.

EQT prices $1.75 billion

EQT priced $1.75 billion of fixed-rate senior notes (Ba1/BBB-/BBB-) in two tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

A $1 billion tranche of 6.125% five-year notes priced at par to yield a spread of Treasuries plus 452 bps.

The notes due due Feb. 1, 2025 were initially talked to price in the 6.25% area.

EQT sold $750 million of 7% notes due Feb. 1, 2030 at par to yield a Treasuries plus 521 bps spread.

Initial price talk was in the 7.125% area.

BofA Securities, Inc., J.P. Morgan Securities LLC, BMO Capital Markets Corp., MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.

The integrated energy company is based in Pittsburgh.

Nippon Life prints $1.15 billion

Nippon Life Insurance priced $1.15 billion of 3.4% subordinated notes due Jan. 23, 2050 (A3/A-/A-) on Wednesday at a spread of 261.2 bps over Treasuries, according to a market source.

Initial price talk was in the 3.5% to 3.625% area, revised from initial guidance in the 3.75% to 3.875% area.

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

Nippon is a Japanese life insurance company based in Osaka.

American Campus sells notes

American Campus Communities Operating Partnership sold $400 million of 2.85% 10-year guaranteed senior notes on Wednesday at 99.81 to yield 2.872%, according to a market source and an FWP filing.

The notes (Baa2/BBB/) priced at a spread of Treasuries plus 108 bps.

Initial price talk was in the Treasuries plus 125 bps to 130 bps area.

Bookrunners were U.S. Bancorp, Wells Fargo, BBVA Securities Inc., BofA Securities, Deutsche Bank Securities Inc. and J.P. Morgan.

The notes are guaranteed by American Campus Communities Inc.

The real estate investment trust for student housing is based in Austin, Tex.

Japan Bank prices $2.25 billion

In SSA issuance, Japan Bank for International Cooperation priced $2.25 billion of 1.75% guaranteed bonds due Jan. 23, 2023 (A1/A+/) on Wednesday at mid-swaps plus 26 bps, or a spread of Treasuries plus 28.8 bps, according to a market source and an FWP filing.

Initial price talk was in the mid-swaps plus 31 bps area with guidance tightened to the mid-swaps plus 29 bps area.

The bonds priced at 99.68 to yield 1.86%.

Goldman Sachs International, Citigroup Global Markets Ltd., Daiwa Capital Markets Europe Ltd. and Nomura International plc were the bookrunners.

The issue is guaranteed by Japan.

The financial institution is based in Tokyo.

Ontario markets issue

Ontario (Aa3/AA-/) intends to price a dollar-denominated offering of three-year global notes on Thursday, according to a market source.

Initial price talk is in the mid-swap plus 17 bps area.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and TD Securities (USA) LLC are the bookrunners.

Japan Finance schedules roadshow

Japan Finance Organization for Municipalities (A1/A+/) plans to hold a roadshow beginning Jan. 27 for a dual currency bond deal, according to a market source.

The transaction is expected to include a Rule 144A and Regulation S offering of dollar-denominated green bonds and a debut offering of euro-denominated notes.

J.P. Morgan Securities plc, Mizuho Securities Co., Ltd., Merrill Lynch International and Barclays are the bookrunners.

The Japan Finance Organization for Municipalities is a Tokyo-based funding organization for Japanese local governments.

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