MetLife, Enbridge tap high-grade primary market; light volume forecast; credit spreads ease

By Cristal Cody

Eureka Springs, Ark., Dec. 12 – Investment-grade pricing action on Monday included bond deals from MetLife Global Funding I and Enbridge Inc.

MetLife Global Funding I brought $2 billion of notes in three parts during the session.

Enbridge priced an upsized $750 million of 6% fixed-to-floating-rate subordinated notes due Jan. 15, 2077 at par.

Also, details emerged on a $3 billion two-tranche notes sale from Goldman Sachs Group Inc.

About $5 billion to $10 billion of deal volume is expected over the week, with action to slow mid-week due to attention on the Federal Reserve’s policy meeting that ends on Wednesday, according to market sources.

The Markit CDX North American Investment Grade index eased 1 basis point to close at a spread of 68 bps on Monday.

In the secondary market, Roper Technologies Inc.’s 3.8% senior notes due 2026 priced on Thursday traded better than issuance.

MetLife prices $2 billion

MetLife Global Funding I priced $2 billion of notes (Aa3/AA-/) in three tranches on Monday, according to a market source.

The company priced $500 million of two-year floating-rate notes at Libor plus 43 bps.

MetLife Global Funding also priced $500 million of 1.75% two-year notes at a spread of 65 bps over Treasuries.

In addition, MetLife priced $1 billion of 3.45% 10-year notes at a spread of 97 bps over Treasuries.

Deutsche Bank Securities Inc. Barclays, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

The issuer is a financing arm of New York City-based insurance and employee benefits company MetLife Inc.

Enbridge prices

Enbridge priced an upsized $750 million of 6% fixed-to-floating-rate subordinated notes due Jan. 15, 2077 at par on Monday, according to a market source and an FWP filing with the SEC.

The fixed rate on the series 2016A split-rated notes (Ba1/BBB-/DBRS: BBB) will reset to a floating rate on Jan. 15, 2027 at Libor plus 389 bps and will reset on Jan. 15, 2047 at Libor plus 464 bps.

The deal was upsized from $500 million.

JPMorgan, HSBC Securities (USA) Inc., BofA Merrill Lynch, Deutsche Bank and Wells Fargo Securities, LLC were the bookrunners.

Enbridge Gas is a Toronto-based natural gas distribution company.

Goldman sells $3 billion

Goldman Sachs Group priced $3 billion of notes (A3/A/) in two parts on Thursday, according to 424B2 filings with the SEC on Monday.

Goldman Sachs sold $750 million of floating-rate notes due Dec. 13, 2019 at par to yield Libor plus 80 basis points.

The $2.25 billion tranche of 2.3% three-year notes priced at 99.925 and a spread of 95 bps over Treasuries.

Goldman Sachs & Co. was the bookrunner.

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

Roper improves

Earlier in the secondary market, Roper Technologies’ 3.8% notes due 2026 were quoted better at 132 bps offered, a source said.

Roper Technologies sold $700 million of the 10-year notes (Baa3/BBB) on Thursday at a spread of 140 bps over Treasuries.

Roper Technologies is a Sarasota, Fla.-based diversified technology company.

© 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.