Morgan Stanley sells $7 billion notes; Goldman Sachs, Alimentation Couche-Tard, Alberta price

By Cristal Cody

Tupelo, Miss., July 19 – Morgan Stanley led the pricing action in the investment-grade bond market on Wednesday with a $7 billion three-tranche notes offering.

Goldman Sachs Group Inc. continued the bank and financial paper issuance with a $3.5 billion three-part sale of senior global notes.

Also on Wednesday, Alimentation Couche-Tard Inc. priced $2.5 billion of senior notes in three tranches following a round of investor calls.

In other corporate issuance, Duquesne Light Holdings, Inc. sold $325 million of 10-year senior notes.

Also on Wednesday, the Province of Alberta priced $1.5 billion of five-year bonds.

Kommunalbanken AS priced an upsized $500 million reopening of its floating-rate notes due Sept. 8, 2021.

The Markit CDX North American Investment Grade index was less than 1 basis point tighter on the day at a spread of 57 bps.

Morgan Stanley prices

Morgan Stanley priced $7 billion of series I global medium-term senior notes (A3/BBB+/A) on Wednesday in three tranches, according to a market source and an FWP filing with the Securities and Exchange Commission.

Morgan Stanley placed $2 billion of five-year floating-rate notes at par to yield Libor plus 93 bps.

The company sold $3 billion of 3.591% 11-year fixed-to-floating-rate notes at par to yield a spread of Treasuries plus 133 bps. The notes convert to a floating rate at Libor plus 134 bps from July 22, 2027 to but excluding the final maturity date.

In the final tranche, Morgan Stanley priced $2 billion of 3.971% 21-year fixed-to-floating-rate notes at par to yield a spread of Treasuries plus 113 bps. The notes will have a floating rate of Libor plus 145.5 bps starting July 22, 2037 to but excluding the maturity date.

The notes all priced on the tight side of guidance.

Morgan Stanley & Co. LLC was the bookrunner.

Morgan Stanley is a New York-based financial products and services company.

Goldman sells $3.5 billion

Goldman Sachs Group priced $3.5 billion of senior global notes (A3/BBB+/A) in three tranches on Wednesday, according to a market source.

Goldman Sachs sold $500 million of 1.95% two-year notes at 99.988 to yield 1.956% and a spread of Treasuries plus 60 bps.

Goldman Sachs sold $750 million of six-year floating-rate notes at par to yield Libor plus 100 bps.

The company priced $2.25 billion of 2.905% six-year fixed-to-floating-rate notes at par to yield a spread of 108 bps over Treasuries. The notes will convert to a floating rate of Libor plus 99 bps.

Goldman, Sachs & Co. was the bookrunner.

Goldman Sachs Group is a New York-based banking, securities and investment management company.

Alimentation Couche-Tard prints

Alimentation Couche-Tard (Baa2/BBB/) priced $2.5 billion of senior notes in three tranches in a dollar-denominated deal on Wednesday, a market source said.

The company priced $1 billion of 2.7% five-year notes at a Treasuries plus 90 bps spread, on the tight side of talk in the 95 bps area.

The $1 billion tranche of 3.55% 10-year notes priced with a spread of Treasuries plus 130 bps. The notes were talked to price in the Treasuries plus 135 bps area.

Alimentation Couche-Tard sold $500 million of 4.5% 30-year notes at a 165 bps over Treasuries spread. The notes were talked to price in the Treasuries plus 170 bps area.

HSBC Securities (USA) Inc., MUFG and Wells Fargo Securities, LLC were the bookrunners.

The company held investor calls on Monday and Tuesday for the Rule 144A/Regulation S offering.

Alimentation Couche-Tard also was expected to price a Canadian-dollar-denominated private placement offering of senior notes.

The Quebec-based convenience store operator plans to use the proceeds to repay debt under its senior credit facilities.

Duquesne Light sells notes

Duquesne Light Holdings priced $325 million of 3.616% 10-year senior notes (Baa3/BBB-/) on Wednesday at a spread of Treasuries plus 135 bps, according to a market source.

The notes were talked to price in the Treasuries plus 140 bps area.

J.P. Morgan Securities LLC, MUFG and Scotia Capital (USA) Inc. were the bookrunners.

Duquesne Light Holdings is a Pittsburgh-based energy services holding company.

Alberta brings $1.5 billion

The Province of Alberta priced $1.5 billion of 2.2% bonds due July 26, 2022 (Aa1/A+) at 99.854 to yield 2.231% on Wednesday, according to a market source and an FWP filing with the SEC.

The bonds priced at a spread of mid-swaps plus 34 bps, or Treasuries plus 41.5 bps.

The issue was talked to price in the mid-swaps plus 34 bps area as books opened early in the day. Book orders were more than $1.6 billion.

Initial price thoughts on the notes were in the mid-swaps plus mid-30s bps area on Tuesday.

BNP Paribas Securities Corp., CIBC World Markets Corp., RBC Capital Markets, LLC and Scotia Capital (USA) were the bookrunners.

Proceeds will be used for general government purposes.

Kommunalbanken reopens

Kommunalbanken (Aaa/AAA/) priced an upsized $500 million add-on to its floating-rate notes due Sept. 8, 2021 on Wednesday to yield Libor plus 11 bps in a Rule 144A and Regulation S deal, according to a market source.

The notes were initially talked to price in the Libor plus 12 bps area.

The deal was upsized from $300 million.

BMO Capital Markets Corp., Morgan Stanley and Nomura Securities International, Inc. were the lead managers.

Kommunalbanken originally sold $300 million of the notes on Aug. 29, 2014 at par to yield Libor plus 13 bps and priced a $200 million reopening on June 1, 2016. The total outstanding now is $1 billion.

The government-funded lender to municipalities is based in Oslo.

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