Booking, EOG, American Water, Prudential, Ipalco, Omers price notes; credit spreads tighten

By Cristal Cody

Tupelo, Miss., April 8 – High-grade supply on Wednesday included more than $10 billion of corporate and sovereign, supranational and agency issuance.

Booking Holdings, Inc. led deal volume with a $3.25 three-part sale of senior notes.

EOG Resources, Inc. sold $1.5 billion of senior notes in two tranches. The company dropped a third tranche from its initial registered offering that was postponed on March 20.

New York Life Insurance Co. brought $1.25 billion of 30-year surplus notes to the primary market.

American Water Capital Corp. priced $1 billion of senior notes in two tranches.

Prudential plc sold $1 billion of 10-year senior notes following fixed income investor calls held on Monday and Tuesday.

Fashion retailer Nordstrom, Inc. priced an upsized $600 million of five-year senior secured notes (Baa2/BBB/) at par to yield 8.75% and an 828 basis points over Treasuries spread during the session. The offering, conducted off the high-yield desk, was upsized from $500 million.

Ipalco Enterprises Inc. priced $475 million of 10-year senior secured notes.

In addition, Omers Finance Trust sold $1 billion of three-year senior notes.

In other action on Wednesday, National Securities Clearing Corp. (Aaa/AA+/) held fixed income investor calls for a Rule 144A and Regulation S offering of dollar-denominated senior notes.

In addition to EOG’s offering, two other registered deals were postponed in March that remain in the pipeline.

Appalachian Power Co. postponed an offering of fixed-rate senior notes on March 20.

Entergy Corp. postponed a two-part offering of five- and 10-year senior notes on March 17.

Week to date, more than $38 billion of bonds have priced.

About $30 billion to as much as $80 billion of volume was expected by market sources over the holiday-shortened week.

On Thursday, the financial markets will close early at 2 p.m. ET and reopen on Monday after the Good Friday holiday.

New issues priced this week have mostly tightened, a source said.

Keurig Dr Pepper Inc.’s $1.5 billion of senior notes (Baa2/BBB/) priced in two tranches on Tuesday firmed about 5 bps to 6 bps in the secondary market.

The company’s $750 million offering of 3.2% notes due May 1, 2030 tightened 6 bps from where the notes priced Tuesday at a spread of 250 bps over Treasuries.

T-Mobile U.S. Inc. subsidiary T-Mobile USA, Inc.’s $19 billion five-part offering of senior secured notes (Baa3/BBB-/BBB-) priced on April 2 to finance its merger with Sprint Corp. remained better than issuance, a source said.

The company’s $7 billion of 3.875% notes due April 15, 2030 climbed to 103.14 in heavy trading on Wednesday from 102.07 in the prior session.

The 10-year notes priced at 99.28 to yield 3.96% and a Treasuries plus 337.5 bps spread.

Market tone was improved with stock indices up nearly 2% across the board at the start of the day and finishing 2.5% to 3.4% better.

The Markit CDX North American Investment Grade 33 index closed nearly 8 bps tighter at a spread of 105.05 bps. The index has firmed about 25 bps over the past three sessions.

The iShares iBoxx Investment Grade Corporate Bond ETF ended the day 0.15% better.

The PIMCO Investment Grade Corporate Bond index ETF rose 93 cents, or 0.88%.

Booking prices $3.25 billion

Booking Holdings priced $3.25 of senior notes (A3/A-/) in three tranches on Wednesday, according to a market source.

The company sold $1 billion of 4.1% five-year notes at a Treasuries plus 362.5 bps spread.

The five-year notes were talked to price at the Treasuries plus 412.5 bps area.

A $750 million offering of 4.5% seven-year notes priced at a 387.5 bps over Treasuries spread.

Booking also sold $1.5 billion of 4.625% 10-year notes at a spread of 387.5 bps over Treasuries.

The seven- and 10-year tranches were both talked to print in the 425 bps spread area.

BofA Securities, Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., TD Securities (USA) LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.

The online travel company is based in Norwalk, Conn.

EOG sells $1.5 billion notes

EOG Resources sold $1.5 billion of senior notes (A3/A-/) in two parts on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

EOG priced $750 million of 4.375% 10-year notes at 99.96 to yield 4.38% and a spread of Treasuries plus 362.5 bps.

A $750 million tranche of 4.95% 30-year notes priced at 99.412 to yield 4.988%, or a 362.5 bps over Treasuries spread.

Both tranches were talked at the 450 bps spread area.

Citigroup, J.P. Morgan, BMO Capital Markets Corp., CIBC World Markets Corp., Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc. and Wells Fargo were the bookrunners.

EOG is a Houston-based crude oil and natural gas company.

New York Life brings $1.25 billion

New York Life Insurance sold $1.25 billion of 3.75% 30-year surplus notes (Aa2/AA-/AA) on Wednesday at a spread of Treasuries plus 240 bps, according to a market source.

The notes were talked at the Treasuries plus 287.5 bps spread area.

Barclays, Credit Suisse Securities (USA) LLC, Deutsche and J.P. Morgan were the active bookrunners.

The mutual insurance company is based in New York City.

American Water prices $1 billion

American Water Capital priced $1 billion of senior notes (Baa1/A/) in two tranches on Wednesday, according to a market source and an FWP filing.

A $500 million offering of 2.8% 10-year notes priced at 99.591 to yield 2.847%, or a spread of 210 bps over Treasuries.

American Water Capital sold $500 million of 3.45% 30-year notes at a spread of Treasuries plus 210 bps. The notes priced at 99.794 to yield 3.461%.

Both tranches were talked to print at the Treasuries plus 275 bps spread area.

BofA Securities, Mizuho Securities USA Inc., RBC Capital Markets, LLC, U.S. Bancorp, Wells Fargo, J.P. Morgan, MUFG, PNC Capital Markets LLC and TD Securities were the bookrunners.

The investor-owned water and wastewater utility is based in Voorhees, N.J.

Prudential raises $1 billion

Prudential sold $1 billion of 3.125% 10-year senior notes (A2/A/) on Wednesday at a spread of Treasuries plus 250 bps, according to a market source and an FWP filing.

Initial guidance was in the Treasuries plus 312.5 bps area.

The notes priced at 99.058 to yield 3.236%.

Barclays, BofA Securities, Citigroup, Credit Agricole Securities (USA) Inc. and MUFG were the bookrunners.

The life insurance and financial services company is based in London.

Ipalco sells secured notes

Ipalco Enterprises priced $475 million of 4.25% 10-year senior secured notes (Baa3/BBB/BBB-) on Wednesday tighter than guidance at a spread of Treasuries plus 350 bps, according to a market source.

The notes were initially talked to print in the Treasuries plus 400 bps area with guidance tightened to the 360 bps area, plus or minus 5 bps.

BofA Securities, J.P. Morgan, PNC Capital and U.S. Bancorp were the bookrunners of the Rule 144A and Regulation S transaction.

The issuer is the holding company of Indianapolis Power & Light Co., a regulated electric utility based in Indianapolis, Ind.

Omers Trust prices $1 billion

Omers Finance Trust (Aa1/AA+/AAA) priced $1 billion of 1.125% three-year senior notes on Wednesday at a spread of Treasuries plus 80 bps, according to a market source.

Initial price talk was in the Treasuries plus 80 bps area.

BMO, HSBC Securities (USA) Inc., RBC Capital and TD Securities were the lead managers.

Omers Finance is a Toronto-based financing arm of the Ontario Municipal Employees Retirement System.

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