Union Pacific, Pitney Bowes, Penske, Dexia, Ontario Teachers, Finland tap primary market

By Cristal Cody

Tupelo, Miss., Sept. 12 – High-grade corporate and SSA issuers tapped the primary market on Tuesday.

Union Pacific Corp. sold $1 billion of senior notes in two tranches.

Pitney Bowes Inc. priced $700 million of split-rated notes in two tranches.

Penske Truck Leasing Co., LP and co-issuer PTL Finance Corp. raised $600 million in a senior notes offering.

In SSA supply, Dexia Credit Local SA sold $2 billion of five-year notes.

Ontario Teachers’ Finance Trust also priced $1.75 billion of five-year notes.

In addition, the Republic of Finland sold $1 billion of three-year notes during the session.

The Markit CDX North American Investment Grade 28 index firmed about 1 basis point to close the day at a spread of 56 bps.

Union Pacific sells $1 billion

Union Pacific sold $1 billion of senior notes (A3/A/) in two tranches on Tuesday, according to FWP filings with the Securities and Exchange Commission.

The company priced $500 million of 3.6% notes due Sept. 15, 2037 at 99.901 to yield 3.607%. The notes priced with a spread of Treasuries plus 83 bps.

Union Pacific sold $500 million of 4.1% notes due Sept. 15, 2067 at 99.852 to yield 4.107%, or Treasuries plus 133 bps.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC were the bookrunners.

The Omaha-based railroad transportation company will use the proceeds for general corporate purposes, including stock repurchases.

Pitney Bowes prices notes

Pitney Bowes priced $700 million of split-rated notes (Ba1/BBB-/BBB-) in two parts on Tuesday, according to an FWP filing with the SEC.

The company sold $300 million of 3.625% three-year notes at 99.764 to yield 3.709% and a spread of Treasuries plus 225 bps.

Pitney Bowes sold $400 million of 4.7% notes due April 1, 2023 at 99.756 to yield 4.75%, or Treasuries plus 300 bps.

Goldman Sachs & Co., BofA Merrill Lynch, Citigroup Global Markets, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG and HSBC Securities (USA) Inc. were the bookrunners.

Proceeds will be used for the company’s planned acquisition of NGS Holdings, Inc., to repay $350 million of 4.75% notes due May 2018 and for general corporate purposes.

The mail processing equipment company is based in Stamford, Conn.

Penske prices $600 million

Penske Truck Leasing and co-issuer PTL Finance priced $600 million of 2.7% senior notes due March 14, 2023 at a spread of 100 bps over Treasuries on Tuesday, according to a market source.

The notes (Baa2/BBB/BBB+) priced at the tight side of guidance.

BofA Merrill Lynch, J.P. Morgan Securities, Mizuho Securities, UBS Securities LLC and Wells Fargo Securities LLC were the bookrunners.

The global transportation services provider is based in Reading, Pa.

Dexia Credit brings $2 billion

In SSA issuance, Dexia Credit Local (Aa3/AA/BBB+) priced $2 billion of Rule 144A and Regulation S senior notes due Sept. 20, 2022 on Tuesday with a 2.375% coupon at mid-swaps plus 61 bps, or a spread of Treasuries plus 68.8 bps, according to a market source.

The notes were talked to price in the mid-swaps plus 65 bps area.

Deutsche Bank Securities Inc., Goldman Sachs, J.P. Morgan Securities and Societe Generale CIB were the bookrunners.

The regional bank, focusing on sustainable development, is based in Brussels.

Ontario Teachers prints

Ontario Teachers’ Finance Trust priced $1.75 billion of 2.125% global medium-term notes due Sept. 19, 2022 (Aaa//DBRS: AAA) at a spread of Treasuries plus 42.3 bps in a Rule 144A, Regulation S 3c7 deal on Tuesday, according to a market source.

The notes were talked to price in the mid-swaps plus 37.5 bps area.

Goldman Sachs, J.P. Morgan Securities and RBC Capital Markets, LLC were the bookrunners.

Ontario Teachers’ Finance Trust is a Toronto-based financing arm of the Ontario Teachers’ Pension Plan Board.

Finland prices $1 billion

Finland (Aa1/AA+/AA+) sold $1 billion of 1.5% notes due Sept. 21, 2020 on Tuesday at mid-swaps minus 6 bps, or a spread of Treasuries plus 13.8 bps, according to a market source.

The notes were talked to price in the mid-swaps minus 3 bps area.

Credit Agricole CIB, J.P. Morgan Securities, Nomura Securities International and Nordea Bank were the bookrunners for the Rule 144A and Regulation S offering.

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