Primary rush continues with Burlington Northern, Cades, CBA; Burlington Northern, Apple firm

By Aleesia Forni and Cristal Cody

Virginia Beach, March 4 – Caisse d'Amortissement de la Dette Sociale (Cades), Commonwealth Bank of Australia, Burlington Northern Santa Fe LLC and Ensco plc brought new issues to the investment-grade primary on Wednesday during another frenzied session for the market.

Cades sold the largest deal of the session, pricing an upsized $5 billion of notes due 2018 in line with price guidance.

Meanwhile, Commonwealth Bank of Australia sold all three tranches of its new $3 billion offering at the tight end of guidance.

Burlington Northern Santa Fe came to market with a $1.5 billion two-part issue of debentures. The tranches sold between 20 basis points to 22 bps tight of the mid-point of initial talk.

The order book for Ensco’s new $1.1 billion two-tranche offer was around five times oversubscribed.

TD Ameritrade Holding Corp., DTE Electric Co. and Solar Star Funding LLC were each in the market with upsized new issues.

The session also saw deals from Republic Services Inc., Lincoln National Corp. and CME Group Inc.

The market has already digested a staggering $54.52 billion of supply this week, due largely to Tuesday’s $21 billion jumbo trade from Actavis Inc., and sources expect another bout of issuance for Thursday’s session.

“There really don’t seem to be any signs of fatigue at this point,” one market source said.

In the Canadian primary market, the World Bank, or International Bank for Reconstruction and Development, on Wednesday brought C$1.2 billion of 1.125% five-year global bonds at a spread of 39.7 bps over the Government of Canada benchmark.

BMO Capital Markets Corp. and TD Securities Inc. were the lead managers.

The deal was upsized from C$500 million.

“The World Bank has been absent from the CAD market since June of last year,” Salvatore Aloisi, managing director of syndication & origination at TD Securities, said in a release. “There was clearly pent-up demand for the name, and this resulted in their largest ever benchmark in this market to date.”

Investment-grade bonds headed out unchanged to modestly better.

The Markit CDX North American Investment Grade index was flat at a spread of 62 bps.

Burlington Northern’s debentures traded 1 bp to 2 bps tighter in the secondary market.

Apple Inc.’s 2.5% senior notes due 2025 headed out 1 bp tighter.

Cades upsizes

Cades sold an upsized $5 billion issue of 1.25% three-year notes on Wednesday at 99.722 with a spread of mid-swaps plus 5 bps, or Treasuries plus 27.8 bps, a market source said.

Pricing was in line with talk.

The notes (Aa1/AA/) sold via Rule 144A and Regulation S.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Societe Generale were bookrunners.

The French debt agency is based in Paris.

CBA prices tight

Also during the session, Commonwealth Bank of Australia issued $3 billion of notes (Aa2/AA-/AA-) in three tranches, a market source said.

There was a $750 million tranche of floating-rate notes due 2018 priced at Libor plus 40 bps.

Guidance was set in the Libor plus 43 bps area.

A second tranche was $1.25 billion of 1.625% notes due 2018 sold at 62 bps over Treasuries.

The three-year fixed-rate notes were guided in the 65 bps area over Treasuries.

A $1 billion tranche of 2.3% notes due 2020 sold at Treasuries plus 75 bps.

The five-year notes priced at the tight end of guidance set in the area of Treasuries plus 78 bps.

Bookrunners were Citigroup Global Markets, Commonwealth Bank of Australia, HSBC Securities (USA) Inc. and JPMorgan.

Commonwealth Bank of Australia is a Sydney-based banking and financial services company.

Burlington debentures

Burlington Northern Santa Fe priced $1.5 billion of debentures (A3/BBB+) in two tranches on Wednesday, according to a market source and an FWP filed with the Securities and Exchange Commission.

There was $500 million of 3% debentures due 2025 priced at 99.534 to yield 3.054%, or Treasuries plus 93 bps.

Guidance was set in the 95 bps area after having firmed from initial talk set in the 115 bps area.

A second tranche was $1 billion of 4.15% debentures due 2045 sold at 99.673 to yield 4.169%.

The notes sold with a spread of 145 bps over Treasuries.

Pricing was at the tight end of guidance set in the 150 bps area. Initial talk was set in the 165 bps area over Treasuries.

Goldman Sachs & Co., JPMorgan and Wells Fargo Securities LLC were the joint bookrunners.

Proceeds will be used for general corporate purposes, which may include working capital, capital expenditures, repayment of outstanding debt and distributions.

In the secondary market, Burlington Northern’s 3% debentures due 2025 tightened to 91 bps offered, a trader said.

The 4.15% debentures due 2045 firmed to 144 bps bid, 142 bps offered in secondary trading.

The holding company for railroad transportation subsidiaries is based in Fort Worth.

Ensco deal

Ensco plc sold $1.1 billion of senior notes (Baa1/BBB+/BBB+) in two tranches on Wednesday, according to a market source.

There was $700 million of 5.2% 10-year notes priced at 99.622 to yield 5.249%, or Treasuries plus 312.5 bps.

Guidance was set in the Treasuries plus 325 bps area.

A second tranche was a $400 million add-on to the company’s existing 5.75% notes due Oct. 1, 2044 priced at 95.335 to yield 6.092%, or Treasuries plus 337.5 bps.

The notes were guided in the Treasuries plus 350 bps area.

The original $650 million of notes sold at Treasuries plus 250 bps on Sept. 24, 2014.

Bookrunners were Citigroup Global Markets, Deutsche Bank Securities and HSBC Securities.

Proceeds will be used to fund a tender, and remaining net proceeds will be used to redeem all of the company’s outstanding Marad obligations and for general corporate purposes.

The oil and gas services company is based in London.

TD Ameritrade upsizes

In other primary news, TD Ameritrade Holding sold an upsized $750 million issue of seven-year senior notes (A3/A) at Treasuries plus 105 bps, according to an informed source and an FWP filed with the SEC.

The notes were guided in the 110 bps area over Treasuries. Initial price talk was set in the 120 bps area over Treasuries.

Pricing was at 99.765 to yield 2.987%.

JPMorgan, BofA Merrill Lynch, Barclays, TD Securities, Wells Fargo Securities and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used for general corporate purposes, including liquidity for operational contingencies.

The securities brokerage and financial services provider is based in Omaha.

CME prices tight

CME Group priced $750 million of senior notes (Aa3/AA-/) due 2025 on Wednesday at Treasuries plus 90 bps, according to an informed source and an FWP filed Wednesday with the SEC.

Pricing was at 99.811 to yield 3.022%.

The notes sold at the tight end of guidance set in the Treasuries plus 95 bps area. Initial talk was set in the low-100 bps area over Treasuries.

The bookrunners were Barclays, BofA Merrill Lynch, BMO Capital Markets Corp., Citigroup Global Markets, Credit Suisse Securities (USA) LLC, Lloyds Securities, MUFG and Wells Fargo Securities.

Proceeds will be used to redeem, repurchase or otherwise retire all outstanding 2018 notes and for general corporate purposes.

The operator of futures exchanges and clearinghouses is based in Chicago.

Republic new issue

Republic Services sold $500 million of 3.2% 10-year senior notes (Baa3/BBB+/BBB) on Wednesday at Treasuries plus 113 bps, according to a market source and an FWP filed with the SEC.

Pricing was at 99.584 to yield 3.249%.

The notes were sold at the tight end of the Treasuries plus 115 bps area guidance, which firmed from initial talk set in the 130 bps area.

Barclays, BofA Merrill Lynch, JPMorgan, Deutsche Bank Securities, MUFG and SunTrust Robinson Humphrey Inc. are the bookrunners.

The company expects to use the net proceeds to refinance debt incurred in connection with its acquisition of Tervita, LLC.

The collector of non-hazardous solid waste is based in Phoenix.

DTE upsizes

Meanwhile, DTE Electric priced an upsized $500 million of 3.7% general and refunding mortgage bonds, series 2015A, due 2045 at Treasuries plus 100 bps, according to an FWP filed with the SEC.

The deal was upsized from $350 million.

The notes (Aa3/A/A) priced at 99.766 to yield 3.713%.

Barclays, BofA Merrill Lynch, Citigroup Global Markets, BNY Mellon Capital Markets LLC, MUFG, Scotia Capital (USA) Inc. and Wells Fargo Securities are the bookrunners.

Proceeds will be used for the repayment of short-term borrowings and for general corporate purposes.

The electric utility is based in Detroit.

Lincoln National offering

Lincoln National sold a $300 million issue of 3.35% 10-year senior notes on Wednesday at 99.84 to yield 3.369%, or Treasuries plus 125 bps, according to an FWP filing with the SEC.

The notes (Baa1/A-/BBB+) sold tight of initial price talk set in the 140 bps area.

Barclays and Deutsche Bank Securities were the joint bookrunners.

Proceeds will be used to repay the company’s 4.3% fixed-rate senior notes due June 15, 2015, of which $250 million is outstanding, and any remaining proceeds will be used for general corporate purposes.

The holding company for insurance and retirement subsidiaries is based in Radnor, Pa.

Solar Star secured notes

Solar Star Funding sold an upsized $325 million issue of 3.95% senior secured notes, series B, due June 2045 on Wednesday at par with a spread of 183 bps over Treasuries, according to a market source.

Guidance was set in the 4% area, having tightened from initial talk in the 4.25% area.

The notes (Baa3/BBB/BBB-) were sold via Rule 144A and Regulation S without registration rights.

Barclays, Citigroup Global Markets and RBS Securities Inc. are managing the sale.

Solar Star is owned by Des Moines-based utility holding company Berkshire Hathaway Energy Co.

Fannie Mae passes

Fannie Mae said that it will not use its March 4 Benchmark Notes announcement date, according to a company press release.

The government-backed mortgage lender is based in Washington, D.C.

Apple firms

Apple’s 2.5% notes due 2025 firmed 1 bp in late afternoon trading to 70 bps bid, according to a market source.

Apple sold $1.5 billion of the notes (Aa1/AA+/) on Feb. 2 at Treasuries plus 85 bps.

The computer and mobile communications device company is based in Cupertino, Calif.

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