U.S. Bancorp, United, National Rural, Discover, Nevada Power and Comerica price notes

By Devika Patel

Knoxville, Tenn., Jan. 28 – On Monday, the high-grade primary market saw six new deals pricing.

Minneapolis-based U.S. Bancorp issued $1.3 billion of five-year 3.375% senior notes (A1/A+/AA); Chicago-based airline United Airlines Inc. priced $1.01 billion of pass-through certificates in two parts; and Herndon, Va.’s National Rural Utilities Cooperative Finance Corp., a market lender for electric cooperatives, sold $950 million of collateral trust bonds (A1/A/A+) in two tranches.

In addition, Riverwoods, Ill.-based direct banking and payment services company Discover Financial Services sold $600 million of seven-year 4.5% senior notes (Baa3/BBB-/BBB+); Nevada Power Co., an electric subsidiary of Las Vegas-based NV Energy, Inc., priced $500 million of 3.7% series CC general and refunding mortgage notes (A2/A+/) due May 1, 2029; and Dallas-based financial services company Comerica Inc. sold $350 million of 10-year 4% senior notes (A3/BBB+/A).

U.S. Bancorp $1.3 billion deal

U.S. Bancorp, a holding company and parent of U.S. Bank NA, sold $1.3 billion of five-year 3.375% senior notes at a spread of 80 basis points over Treasuries.

The notes priced at 99.973 to yield 3.381%.

U.S. Bancorp Investments, Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the bookrunners.

United sells $1.01 billion

United Airlines priced $1,013,070,000 of series 2019-1 class AA pass-through certificates and series 2019-1 class A pass-through certificates.

The company sold $716,625,000 of 4.15% class AA certificates at a spread of Treasuries plus 20 bps.

United Airlines priced $296,445,000 of 4.55% class A certificates at a Treasuries plus 30 bps spread.

Both tranches priced at par.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs are the lead bookrunners.

Deutsche Bank Securities Inc., Morgan Stanley, J.P. Morgan Securities LLC, Barclays, BofA Merrill Lynch, BBVA Securities Inc., BNP Paribas Securities Corp., Credit Agricole Securities, Standard Chartered Bank and Wells Fargo Securities LLC are also bookrunners.

Proceeds will be used to purchase equipment notes.

National Rural launches bonds

National Rural priced $950 million of collateral trust bonds in two tranches on Monday.

The company sold $450 million of 3.7% collateral trust bonds due March 15, 2029 with a spread of 98 bps over Treasuries. Pricing was at 99.777 to yield 3.726%.

There was $500 million of 4.3% collateral trust bonds due March 15, 2049 sold with a spread of Treasuries plus 125 bps. These notes priced at 99.658 to yield 4.32%.

J.P. Morgan Securities, KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., PNC Capital Markets LLC and SunTrust Robinson Humphrey Inc. are the bookrunners.

Proceeds will be used to repay National Rural’s $300 million of 2.15% collateral trust bonds due Feb. 1, 2019 and $350 million of 1.65% collateral trust bonds due Feb. 8, 2019, to repay short-term debt and for general corporate purposes.

Discover prices 4.5% notes

Discover sold $600 million of seven-year 4.5% senior notes (Baa3/BBB-/BBB+) at a spread of 187.5 bps over Treasuries.

The notes priced at 99.84 to yield 4.527%.

BofA Merrill Lynch, Barclays and Goldman Sachs were the joint bookrunners.

Proceeds will be used for general corporate purposes.

Nevada Power sells 3.7% notes

Nevada Power priced $500 million of 3.7% series CC general and refunding mortgage notes (A2/A+/) due May 1, 2029 at 99.616 to yield 3.746%.

The notes priced with a spread of 100 bps over Treasuries.

BMO Capital Markets Corp., BNP Paribas Securities, CIBC Capital Markets, Citigroup Global Markets and SunTrust Robinson Humphrey were the bookrunners.

Proceeds will be used to repay up to $500 million of the company’s 7.125% general and refunding mortgage notes, series V, due March 2019 and for general corporate purposes.

Comerica sells 4% notes

Comerica priced a $350 million 10-year 4% senior notes.

The notes were sold at 99.625 to yield 4.046%, or 130 bps over Treasuries.

Morgan Stanley and J.P. Morgan Securities are the bookrunners.

Proceeds will be used for general corporate purposes.

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