Berkshire Hathaway Energy, BNP, General Motors price notes; Libor yield highest since 2008

By Cristal Cody

Tupelo, Miss., Jan. 2 – Several issuers tapped the investment-grade bond market in the first session of 2018.

Berkshire Hathaway Energy Co. priced $2.2 billion of senior notes in four tranches.

BNP Paribas SA placed $2 billion of seven-year notes on the tight side of talk.

General Motors Financial Co. Inc. brought $1.65 billion of senior notes in three tranches to the primary market.

Also, Santander UK plc was offering notes.

Deal action is expected to be strong in January, according to market sources.

The Markit CDX North American Investment Grade 29 index ended the session about 0.5 basis point tighter at a spread of 48.5 bps.

The three-month Libor yield hit 1.69%, the highest yield since December 2008, according to a market source.

Berkshire Hathaway Energy priced $2.2 billion of senior notes (A3/A-/BBB+) in four tranches on Tuesday, a source said.

The company sold $450 million of 2.375% three-year notes at a spread of Treasuries plus 38 bps.

Berkshire Hathaway Energy priced $400 million of 2.8% five-year notes at a 55 bps spread over Treasuries.

In the long 10-year tranche, the company priced $600 million of 3.25% notes with a Treasuries plus 83 bps spread.

The final $750 million tranche of 3.8% notes due July 15, 2048 were sold at a spread of 103 bps over Treasuries.

The notes priced on the tight side of talk.

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