Tupelo, Miss., April 7 – Investment-grade issuers priced more than $13 billion of bonds on Tuesday, bringing week to date corporate and sovereign, supranational and agency volume to over $30 billion.
As much as $80 billion of volume is expected by market sources this week.
Heavy front-loaded issuance was anticipated with the markets set to close early on Thursday and remain closed on Friday for the Good Friday holiday.
High-grade market tone was mostly improved over the day.
The Markit CDX North American Investment Grade 33 index firmed about 7 bps to a spread of 112.59 bps. The index has tightened about 17 bps from Friday’s level.
The iShares iBoxx Investment Grade Corporate Bond ETF ended the day 0.15% better.
The PIMCO Investment Grade Corporate Bond Index ETF closed up 45 cents, or 0.043%.
Keurig Dr Pepper priced $1.5 billion of senior notes (Baa2/BBB/) in two tranches on Tuesday, according to a market source and an FWP filed with the Securities and Exchange Commission.
A $750 million offering of 3.2% 10-year notes priced at 99.743 to yield 3.23% and a spread of 250 bps over Treasuries.
The company sold $750 million of 3.8% 30-year notes at 99.448 to yield 3.831%, or with a Treasuries plus 250 bps spread.
Both tranches were talked to print with a spread in the Treasuries plus 300 bps area.
| BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Mizuho Securities USA LLC, Morgan Stanley | & Co. LLC, SMBC Nikko Securities America, | Inc. and SunTrust Robinson Humphrey, | Inc. were the bookrunners.
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| The beverage conglomerate is based in Burlington, Mass.
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BAE brings $1.3 billion
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| BAE Systems (Baa2/BBB/BBB) priced a $1.3 billion Rule 144A and Regulation S offering of 3.4% 10-year senior notes on Tuesday at a spread of Treasuries plus 275 bps, according to a market source.
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| The notes were guided to print at the 312.5 bps over Treasuries area.
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| Deutsche Bank Securities Inc., Goldman Sachs, Morgan Stanley and NatWest Markets Securities Inc. were the bookrunners.
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| BAE Systems is a global defense, security and aerospace company based in London and Farnborough, U.K.
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Mondelez International prices
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| Mondelez International priced $1 billion of notes (Baa1/BBB/) in two tranches on Tuesday, according to a market source and an FWP filing.
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| The company sold $500 million of 2.125% three-year notes at 99.769 to yield 2.205%, or a spread of Treasuries plus 185 bps.
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| The three-year notes were initially talked to price at the Treasuries plus 237.5 bps area.
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| Mondelez sold $500 million of 2.75% 10-year notes at 99.032 to yield 2.862%. The notes priced at a Treasuries plus 212.5 bps spread.
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| Initial guidance was at the 275 bps spread area.
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| Barclays, BofA Securities, J.P. Morgan and Wells Fargo Securities LLC were the bookrunners.
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| Mondelez is a snack company with global headquarters in Deerfield, Ill.
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NiSource raises $1 billion
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| NiSource sold $1 billion of 3.6% 10-year notes at a spread of Treasuries plus 290 bps, tighter than talk in the 350 bps spread area, according to a market source and an FWP filing.
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| The notes (Baa2/BBB+/BBB) priced at 99.631 to yield 3.644%.
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| Barclays, J.P. Morgan, MUFG and PNC Capital Markets LLC were the bookrunners.
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| NiSource is a Merrillville, Ind.-based company with businesses in natural gas transmission, storage and distribution, and electricity generation, transmission and distribution.
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Phillips 66 Partners prices
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| Phillips 66 priced $1 billion of guaranteed senior notes (Baa3/BBB/) in two tranches on Tuesday, according to a market source.
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| The company sold $500 million of 3.7% three-year notes at a spread of Treasuries plus 337.5 bps.
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| Phillips 66 priced $500 million of 3.85% five-year notes at a spread of Treasuries plus 337.5 bps.
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| Initial talk on both tranches was in the Treasuries plus 450 bps area.
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| BofA Securities, Citigroup Global Markets Inc., Mizuho and TD Securities (USA) LLC were the bookrunners.
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| The notes are guaranteed by Phillips 66 Co.
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| Phillips 66 is a Houston-based energy manufacturing and logistics company with midstream, chemicals, refining, and marketing and specialties businesses.
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Avangrid in primary
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| Meanwhile, Avangrid sold $750 million of 3.2% five-year green notes (Baa1/BBB/BBB+) on Tuesday at a spread of 275 bps over Treasuries, according to a market source and an FWP filing.
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| Initial price talk was in the Treasuries plus 325 bps area.
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| The issue priced at 99.871 to yield 3.228%.
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| BBVA Securities Inc., BNP Paribas, BofA Securities Inc., MUFG, CIBC World Markets Corp., Commerz Markets LLC, NatWest and Scotia Capital (USA) Inc. were the bookrunners.
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| Avangrid is an electric and gas utility based in Orange, Conn.
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Estee Lauder sells notes
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| Estee Lauder priced $700 million of 2.6% 10-year senior notes (A1/A+/) during the session at a spread of Treasuries plus 185 bps, according to a market source and an FWP filing.
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| The notes were initially talked to price in the Treasuries plus 237.5 bps area.
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| The issue priced at 99.816 to yield 2.621%.
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| BofA Securities, Citigroup, J.P. Morgan, BNP Paribas and MUFG were the bookrunners.
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| New York-based Estee Lauder is a manufacturer and marketer of skin care, makeup, fragrance and hair care products.
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Narragansett Electric prints
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| Narragansett Electric (A3/A/) priced an upsized $600 million of 3.395% 10-year notes in a Rule 144A and Regulation S offering on Tuesday at a Treasuries plus 265 bps spread, according to a market source.
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| Initial price talk was in the Treasuries plus 300 bps to 312.5 bps area.
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| The deal size was increased from $500 million.
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| Citigroup, J.P. Morgan, MUFG, SMBC Nikko and TD Securities were the bookrunners.
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| Narragansett Electric, a subsidiary of National Grid USA Service Co., Inc., is an electric and gas company based in Providence, R.I.
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Brookfield upsizes
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| Brookfield Finance priced an upsized $600 million of 4.35% 10-year senior notes (Baa1/A-/A-) at a spread of 362.5 bps over Treasuries, according to a market source and an FWP filing.
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| The notes priced at 99.903 to yield 4.362%.
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| The deal was upsized from $500 million.
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| Initial price guidance on the issue was in the 375 bps to 387.5 bps over Treasuries area.
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| Deutsche, HSBC Securities (USA) Inc. and Citigroup were the bookrunners.
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| The notes will be guaranteed by Toronto-based alternative asset manager Brookfield Asset Management Inc.
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BNG prices $2 billion
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| BNG Bank (Aaa/AAA/AAA) priced $2 billion of 0.75% three-year bonds on Tuesday at mid-swaps plus 32 bps, or a spread of Treasuries plus 44.9 bps, according to a market source.
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| Price guidance had firmed to mid-swaps plus 32 bps from initial talk in the 35 bps spread area.
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| BofA Securities, Barclays, Goldman Sachs and RBC Capital Markets, LLC were the bookrunners.
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| The banking services company, formerly known as N.V. Bank Nederlandse Gemeenten, is based in The Hague, Netherlands.
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Ontario Teachers’ prints
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| Also on Tuesday, Ontario Teachers’ Finance Trust (Aa1/AA+/) priced a $1 billion Rule 144A and Regulation S offering of 1.375% five-year senior notes at mid-swaps plus 80 bps, or a spread of 92.05 bps over Treasuries, according to a market source.
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| Initial guidance on the issue due April 15, 2025 was in the mid-swaps plus 80 bps area.
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| BofA Securities, Citigroup, HSBC Securities (USA) Inc. and Scotia were the bookrunners.
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| Ontario Teachers’ Finance Trust is a Toronto-based financing arm of the Ontario Teachers’ Pension Plan Board.
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