Consolidated Edison, EBRD price amid Fed minutes release; JPMorgan soft; AT&T firms

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 19 – Consolidated Edison Co. of New York, Inc. and European Bank for Reconstruction and Development issued new bond deals on Wednesday, while the Federal Reserve released minutes of its latest Federal Open Market Committee meeting.

As expected, the pace of the primary was somewhat quieter during the session with the market focused on the minutes.

Still, seven issuers came to market with mostly smaller-sized deals to price $3.4 billion of new issuance on Wednesday.

“There has been some weakness this week, but things went pretty smoothly today,” a market source said.

Consolidated Edison Co. of New York sold its new $1 billion two-part issue of debentures at the tight end of price talk.

The European Bank for Reconstruction and Development (EBRD) came to market with $1 billion of five-year notes.

The primary also saw new deals from Inter-American Development Bank and Education Realty Operating Partnership LP.

Both new deals from Trimble Navigation Ltd. and Boardwalk Pipelines LP were upsized from their initial planned sizes.

Trimble priced its new 10-year offering in line with talk, while Boardwalk Pipelines’ new bonds due 2024 sold around 12.5 basis points tight of the mid-point of guidance.

However, OGE Energy Corp.’s new $100 million of three-year floaters priced around 7.5 bps wide of the mid-point of initial price guidance.

On the heels of the roughly $100 billion of new issuance that has priced so far this month, one market source noted that “we certainly are seeing some signs [of fatigue].”

So far, this week has seen more than $22.8 billion of new issuance.

Bank and financial paper remained mostly softer in the secondary market, a market source said.

JPMorgan Chase & Co.’s 3.625% senior notes due 2024 eased 2 bps.

In other trading, AT&T Inc.’s 3.9% notes due 2024 improved 3 bps after widening more than 20 bps in the previous two sessions, according to a market source.

Verizon Communications Inc.’s 4.15% senior notes due 2024 were unchanged on the day, a source said.

The Markit CDX North American Investment Grade series 23 index ended flat at a spread of 67 bps.

ConEd of NY debentures

Consolidated Edison Co. of New York sold $1 billion of debentures (A2/A-/A-) in two tranches, according to a market source and two FWP filings with the Securities and Exchange Commission.

The sale included $250 million of 3.3% series 2014B debentures due 2024 at Treasuries plus 98 bps. Pricing was at 99.653 to yield 3.341%.

A second tranche was $750 million of 4.625% notes due 2054 sold at 99.745 to yield 4.639%, or Treasuries plus 155 bps.

Both tranches sold at the tight end of talk.

J.P. Morgan Securities LLC, RBS Securities Inc., BNY Mellon Capital Markets LLC, Citigroup Global Markets Inc., KeyBanc Capital Markets LLC, MUFG and Mizuho Securities (USA) Inc. were the bookrunners.

Proceeds will be used for general corporate purposes, including repaying short-term variable-rate debt.

The electric utility is a subsidiary of New York City-based Consolidated Edison, Inc.

EBRD prices in line with talk

The European Bank for Reconstruction and Development priced $1 billion of 1.75% five-year notes (Aaa/AAA/AAA) at mid-swaps flat, according to a market source.

The notes sold in line with talk.

BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and RBC Capital Markets LLC were the bookrunners.

The lender to banks, businesses and industries is based in London.

Trimble upsizes

Also on Wednesday, Trimble Navigation sold an upsized $400 million of 4.75% senior notes (Baa2BBB-/) due 2024 at Treasuries plus 250 bps, according to an informed source and an FWP filed with the SEC.

Pricing was at 99.205 to yield 4.851%.

The deal was upsized from a planned $350 million.

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

Proceeds will be used to refinance the company’s term loan and for general corporate purposes.

Trimble is a Sunnyvale, Calif., technology company.

Boardwalk prices tight

Boardwalk Pipelines sold an upsized $350 million of 4.95% 10-year senior notes (Baa3/BB+/BBB-) during Wednesday’s session at 275 bps over Treasuries, according to an informed source and an FWP filed with the Securities and Exchange Commission.

The notes priced at 98.82 to yield 5.101%.

Pricing was at the tight end of guidance.

Barclays, JPMorgan, Citigroup Global Markets, Deutsche Bank Securities, MUFG and Wells Fargo Securities LLC were the bookrunners.

The notes are guaranteed by Boardwalk Pipeline Partners LP.

Proceeds will be used to retire $275 million of subsidiary Gulf South’s 5.05% notes due 2015 and to reduce outstanding borrowings under Boardwalk’s revolving credit facility.

The natural gas and liquids pipeline and storage company is based in Houston.

IADB floaters

Inter-American Development Bank priced $300 million of floating-rate global notes (Aaa/AAA/) due 2018 at par to yield Libor plus 4 bps, according to a market source.

The notes sold in line with talk.

RBS Securities and Nomura were the bookrunners.

The issuer provides financing for Latin American and Caribbean countries and is based in Washington, D.C.

Education Realty offering

Education Realty Operating Partnership priced a $250 million offering of 4.6% senior notes due 2024 on Wednesday at Treasuries plus 225 bps, according to an informed source and an FWP filed with the SEC.

The notes (Baa3/BBB-/) sold in line with price talk.

Pricing was at 99.991 to yield 4.601%.

The notes are guaranteed by Education Realty Trust, Inc.

JPMorgan, RBC Capital Markets, BofA Merrill Lynch and PNC Capital Markets LLC were the bookrunners.

Proceeds will be used to pay down the outstanding balance of the company’s unsecured revolving credit facility and for general corporate purposes.

Education Realty Trust is a Memphis real estate investment trust focused on student housing communities located near university campuses.

OGE floaters

OGE Energy sold $100 million of three-year floating-rate senior notes (A3/BBB+/A-) at par to yield Libor plus 55 bps on Wednesday, according to an FWP filed with the SEC.

Pricing was wide of guidance, which was set at Libor plus 40 bps to 45 bps.

BNY Mellon Capital Markets LLC, RBC Capital Markets and Wells Fargo Securities were the bookrunners.

Proceeds will be added to the company’s general funds and will be used to repay short-term debt.

Oklahoma City-based OGE is the parent company of Enogex and Oklahoma Gas and Electric Co.

World Bank oversubscribed

The orderbook for International Bank for Reconstruction and Development’s (World Bank) recently priced $4 billion of 2.5% 10-year notes (Aaa/AAA/) reached more than $5 billion, according to a company press release.

Around 36% of orders came from Europe, 33% from Asia, 23% from the Americas and 8% from the Middle East and Africa.

By investor type, banks, bank treasuries and corporates picked up 50%, central banks and official institutions 33% and asset managers, pension and insurance companies picked up 17%.

The deal sold on Wednesday with a spread of mid-swaps plus 8 bps, tight of price talk set in the mid-swaps plus 9 bps area.

Pricing was at 99.815 to yield 2.521%, or Treasuries plus 20.2 bps.

BNP Paribas Securities, JPMorgan, Morgan Stanley & Co. LLC and RBC Capital Markets were the bookrunners.

The issuer is based in Washington, D.C.

JPMorgan eases

JPMorgan’s 3.625% senior notes due 2024 (A3/A/A+) eased 2 bps to 124 bps offered, a market source said.

JPMorgan sold $2 billion of the notes on May 6, 2014 at a spread of Treasuries plus 110 bps.

The financial services company is based in New York City.

AT&T firms

AT&T’s 3.9% notes due 2024 firmed 3 bps over the day to 138 bps offered, according to a market source.

The bonds (A3/A-/A) had widened in the previous two sessions after trading on Friday at 120 bps offered.

AT&T sold $1 billion of the 10-year notes on March 5, 2014 at a spread of Treasuries plus 125 bps.

The telecommunications company is based in Dallas.

Verizon unchanged

Verizon’s 4.15% notes due 2024 (Baa1/BBB+/A-) traded flat at 149 bps offered on Wednesday, according to a source.

Verizon sold $1.25 billion of the notes on March 10, 2014 at a spread of Treasuries plus 140 bps.

The telecommunications company is based in New York City.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.