EQT, Credit Agricole, London Branch bring corporate supply; KfW, Finnvera price new notes

By Cristal Cody

Tupelo, Miss., Sept. 27 – High-grade corporate and SSA issuers tapped the primary market on Wednesday.

In corporate supply, EQT Corp. led deal action with a $3 billion four-tranche offering of notes.

Credit Agricole SA, London Branch also came with $1.5 billion of seven-year notes.

In other supply, KfW priced a $1 billion offering of five-year global green bonds.

Finnvera plc sold $1 billion of three-year notes.

The Markit CDX North American Investment Grade 29 index tightened more than 1 basis point to a spread of 57.4 bps during the session.

EQT sells four tranches

EQT sold $3 billion of notes (Baa3/BBB/BBB-) in four tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The company priced $500 million of three-year floating-rate notes at par to yield Libor plus 77 bps.

EQT sold $500 million of 2.5% three-year fixed-rate senior notes at 99.992 to yield 2.503%, or a spread of Treasuries plus 90 bps.

The company placed $750 million of 3% five-year senior notes at 99.738 to yield 3.057% and a Treasuries plus 115 bps spread.

In the final tranche, EQT sold $1.25 billion of 3.9% 10-year notes at 99.918 to yield 3.91%. The notes priced with a spread of 160 bps over Treasuries.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., BofA Merrill Lynch, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, MUFG, PNC Capital Markets, LLC and RBC Capital Markets, LLC were the bookrunners.

Proceeds will be used with cash on hand and borrowings under EQT's revolving credit facility for the cash consideration required for the company’s planned merger with Rice Energy Inc. If the merger is not completed by May 19, 2018, EQT is required to redeem all of the notes, except the five-year tranche.

The integrated energy company is based in Pittsburgh.

Credit Agricole prices

Credit Agricole, London Branch sold $1.5 billion of 3.25% seven-year notes (Baa2//A+) on Wednesday at a spread of 117 bps over Treasuries, according to a market source.

Credit Agricole priced the notes on the tight side of guidance in the Treasuries plus 120 bps area.

Credit Agricole Securities (USA) Inc. was the bookrunner.

The London-based bank is a subsidiary of Credit Agricole SA.

KfW sells bonds

KfW (Aaa/AAA/AAA) priced a $1 billion offering of 2% five-year global green bonds on Wednesday at 99.684, according to a market source and an FWP filing with the SEC.

The bonds priced at mid-swaps plus 9 bps, or a spread of Treasuries plus 17.2 bps.

The bonds were initially talked to price in the mid-swaps plus 12 bps area.

BofA Merrill Lynch, RBC Capital Markets and TD Securities (USA) LLC were the bookrunners.

The notes will be guaranteed by the Federal Republic of Germany.

Proceeds will be used for KfW’s environmental investment program and renewable energies program that promotes the development of electricity and heat from renewable sources.

KfW is a Frankfurt-based government-backed bank.

Finnvera brings $1 billion

Finnvera (Aa1/AA+/) sold $1 billion of 1.875% three-year notes on Wednesday in a Rule 144A and Regulation S offering on the tight side of guidance, according to a market source.

The bonds priced at mid-swaps plus 6 bps, or a spread of Treasuries plus 29.7 bps. The bonds were initially talked to price in the mid-swaps plus 7 bps area.

Credit Agricole CIB, Citigroup Global Markets, HSBC Bank plc and Nordea Bank AB were the bookrunners.

Finnvera is a government-owned financing company based in Kuopio, Finland.

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