EOG, EBC, Rabobank do deals; Ecolab upsizes; Time Warner widens; Comcast, Charter firm

By Aleesia Forni and Cristal Cody

New York, Jan. 11 – EOG Resources Inc., Rabobank, New York branch and Royal Bank of Canada priced bonds on Monday amid a more positive market tone following last week’s turbulent conditions.

The day’s deals fared well to open the week, even as oil prices continued to fall following a plunge in Chinese stocks.

RBC attracted around $1.75 billion of orders for its new deal, a market source noted.

Ecolab Inc. was also in the market with an upsized $800 million offering of senior notes in two parts.

Both tranches came at the tight side of guidance.

Around $25 billion to $30 billion of issuance is expected this week, though one market participant noted the possibility of a large acquisition financing later this week, which could push that figure above expectations.

Time Warner Inc.’s bonds remained weak in the secondary market on Monday and widened about 10 bps to 20 bps.

Comcast Corp.’s 4.6% senior notes due 2045 traded 1 bp tighter.

Charter Communications Inc.’s bonds (Ba1/BBB-) firmed 2 bps to 5 bps during the day.

In other trading, Coca-Cola Co.’s 2.875% senior notes due 2025 softened 2 bps.

PepsiCo Inc.’s 2.75% senior notes due 2025 were flat.

The Markit CDX North American Investment Grade 25 index firmed 1 bp to end at a spread of 98 bps on Monday.

Rabobank new issue

Monday’s primary market hosted Rabobank, which priced $1.5 billion of 2.5% five-year bonds (Aa2/A+) at Treasuries plus 97 bps, according to a market source. Pricing was at 99.776 to yield 2.548%.

The notes sold at the tight end of the Treasuries plus 100 bps area guidance.

BofA Merrill Lynch, Barclays, HSBC Securities and J.P. Morgan Securities LLC were the bookrunners.

The financial services company is based in Utrecht, the Netherlands.

RBC five-years

Royal Bank of Canada priced $1.25 billion of 2.5% five-year senior notes (Aa3/AA-/AA) on Monday with a spread of Treasuries plus 95 bps, according to an FWP filed with the Securities and Exchange Commission.

The notes sold at the tight side of guidance set in the range of Treasuries plus 95 bps to 100 bps. Initial talk was at Treasuries plus 105 bps to 110 bps.

Pricing was at 99.888 to yield 2.524%.

Bookrunners were RBC Capital Markets LLC, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC.

Royal Bank of Canada is a Toronto-based financial services company.

EOG two-parter

Also on Monday, EOG Resources sold $1 billion of senior notes (A3/A-) on Monday in 10- and 20-year tranches, according to a market source and an FWP filed with the SEC.

A $750 million 4.15% tranche of 10-year bonds sold at 99.854 to yield 4.168%, or Treasuries plus 200 bps.

The notes priced at the tight side of the Treasuries plus 205 bps area guidance, which had tightened from talk in the Treasuries plus 210 bps to 220 bps range.

And a $250 million 5.1% tranche of 20-year bonds sold with a 215 bps spread over Treasuries. Pricing was at 99.702 to yield 5.124%.

Guidance was in the Treasuries plus 220 bps area. Initially, talk was in the range of Treasuries plus 225 bps 235 bps.

Barclays, Citigroup, JPMorgan and Wells Fargo Securities LLC are the joint bookrunners.

Proceeds will be used to repay $400 million of 2.5% senior notes due Feb. 1, 2016 and for general corporate purposes, including the repayment of commercial paper and funding of capital expenditures.

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

Ecolab upsizes

Ecolab sold an upsized $800 million of senior notes (Baa1/BBB+) on Monday in two tranches, a market source said.

Included in the sale was $400 million of 2% three-year notes priced at 99.838 to yield 2.056%, or Treasuries plus 88 bps.

The notes came at the tight end of the Treasuries plus 90 bps area guidance.

A $400 million tranche of 3.25% seven-year notes sold at Treasuries plus 133 bps, at the tight end of the Treasuries plus 135 bps area guidance. Pricing was at 99.95 to yield 3.258%.

BofA Merrill Lynch and JPMorgan are the bookrunners.

Proceeds will be used to repay commercial paper borrowings.

The cleaning and sanitizing company is based in St. Paul, Minn.

Time Warner widens

Time Warner’s 3.875% notes due 2026 widened 11 bps to 193 bps bid, a market source said.

Time Warner sold $600 million of the notes (Baa2/BBB/ BBB+) on Nov. 17 at a spread of Treasuries plus 162.5 bps.

The media company is based in New York.

Comcast tightens

Comcast’s 4.6% notes due 2045 firmed 1 bp to 155 bps bid, according to a market source.

Comcast sold $1.7 billion of the bonds (A3/A- /A-) on May 19, 2015 at Treasuries plus 150 bps.

The provider of entertainment, information and communication products and services is based in Philadelphia.

Charter Communications firms

Charter Communications’ 4.908% notes due 2025 were quoted 2 bps tighter at 274 bps bid on Monday, a market source said.

The company sold $4.5 billion of the bonds on July 9 at a spread of Treasuries plus 260 bps.

Charter Communication’s 6.484% bonds due 2045 tightened 5 bps from Friday to 345 bps bid.

The company sold $3.5 billion of the bonds in the July 9 offering at Treasuries plus 335 bps.

The Stamford, Conn.-based company provides cable, internet and phone services.

Coca-Cola eases

Coca-Cola’s 2.875% notes due 2025 eased 2 bps in secondary trading on Monday to 83 bps bid, a market source said.

The company sold $1.75 billion of the 10-year notes (Aa3/AA/A+) on Oct. 22 at 87 bps over Treasuries.

Coca-Cola is an Atlanta-based beverage company.

PepsiCo unchanged

PepsiCo’s 2.75% notes due 2025 headed out unchanged at 91 bps bid, according to a market source.

The company sold $1 billion of the notes (A1/A-/A) on April 27, 2015 at a spread of Treasuries plus 87 bps.

PepsiCo is a Purchase, N.Y.-based global food and beverage company.

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