High-grade primary active; Con Edison, Dominion, Moody’s, Sempra price; McDonald’s mixed

By Cristal Cody

Tupelo, Miss., Nov. 12 – High-grade bond issuers flowed into the primary market on Thursday following the Veterans Day holiday.

Companies including Consolidated Edison Co. of New York, Inc., Commonwealth Edison Co., Dominion Gas Holdings, LLC, Moody’s Corp. and Sempra Energy priced nearly $3 billion of bonds over the session.

In addition, Southern Power Co., Banco Santander, SA, Sunoco Logistics Partners Operations LP and BankUnited, Inc. were expected to tap the market.

Details also emerged on Procter & Gamble Co.’s $132,764,000 offering of floating-rate notes due Nov. 13, 2065, which priced at par.

In the secondary market, McDonald’s Corp.’s senior notes (A3/BBB+/BBB+) were flat to 2 basis points softer after Fitch Ratings revised the company’s outlook to negative from stable. Standard & Poor’s dropped the company’s rating by one notch on Tuesday because of a shareholder capital return plan.

Charter Communications Inc.’s bonds widened 3 bps to 6 bps in secondary trading on Thursday.

The Markit CDX North American Investment Grade 25 index ended the day wider at a spread of 83 bps. The index closed on Tuesday flat at 81 bps.

Commonwealth Edison prices

Commonwealth Edison sold $450 million of 4.35% 30-year first mortgage bonds (A2/A-/A-) at 99.222 to yield 4.397% on Thursday, according to an FWP filing with the Securities and Exchange Commission.

The series 119 first mortgage bonds priced with a spread of 130 bps over Treasuries.

BofA Merrill Lynch, Citigroup Global Markets Inc., Wells Fargo Securities, LLC, CIBC World Markets Corp. and RBC Capital Markets, LLC were the lead managers.

Proceeds from the deal will be used to repay outstanding commercial paper obligations and for general corporate purposes.

Commonwealth Edison is a unit of Chicago-based energy provider Exelon Corp.

Dominion Gas taps market

Dominion Gas Holdings sold $700 million of 2.8% five-year senior notes at 99.663 to yield 2.873% on Thursday, according to an FWP filing with the SEC.

The series 2015A notes priced with a spread of 115 bps over Treasuries.

Barclays, BofA Merrill Lynch, Morgan Stanley & Co. LLC and RBC Capital Markets were the bookrunners.

Proceeds will be used for general corporate purposes, to repay short-term debt and to repay intercompany debt owed to Dominion.

Dominion Gas is a Richmond, Va.-based natural gas company.

Con Edison New York prices

Consolidated Edison Co. of New York sold $650 million of 4.5% 30-year debentures at 99.9 to yield 4.506%, according to an FWP filing with the SEC on Thursday.

The series 2015A debentures priced with a spread of 140 bps over Treasuries.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo, MUFG and KeyBanc Capital Markets Inc. were the bookrunners.

Proceeds from the deal will be used for general corporate purposes.

Consolidated Edison provides electric service in New York.

Moody’s re-opens bonds

Moody’s priced a $300 million add-on to its existing 5.25% senior notes due July 15, 2044 at 101.663 to yield 5.138%, according to an FWP filing with the SEC.

The notes were sold at a spread of 205 bps over Treasuries.

Citigroup and JPMorgan were the bookrunners.

Proceeds will be used for general corporate purposes.

Moody’s originally sold the notes in a $300 million offering on July 16, 2014 at 99.462 to yield 5.286%, or a spread of 185 bps over Treasuries. The total outstanding is $600 million.

Moody’s is a New York-based provider of credit ratings.

Sempra prices two tranches

Sempra Energy sold $750 million of notes (Baa1/BBB+/BBB+) in two tranches on Thursday, according to an FWP filing with the SEC.

The sale included $400 million of 2.85% five-year notes priced at 99.894 to yield 2.873%, or 115 bps over Treasuries.

Sempra Energy sold $350 million of 3.75% 10-year notes at 99.728 to yield 3.783%. The bonds priced with a spread of 145 bps over Treasuries.

BofA Merrill Lynch, Deutsche Bank Securities Inc., UBS Securities LLC and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to repay outstanding commercial paper and for general corporate purposes.

Sempra Energy is a San Diego-based energy services holding company.

Procter & Gamble prices

The Procter & Gamble sold $132,764,000 of floating-rate notes due Nov. 13, 2065 at par, according to a SEC filing. The notes have a coupon of Libor minus 30 bps and are callable and putable.

BofA Merrill Lynch, Deutsche Bank, JPMorgan, Morgan Stanley, U.S. Bancorp and Wells Fargo were the bookrunners.

Proceeds will be used for general corporate purposes.

The consumer products company is based in Cincinnati.

McDonald’s bonds mixed

In secondary trading, McDonald’s 2.2% notes due 2020 eased 2 bps to 85 bps bid, according to a market source.

The company sold $700 million of the notes on May 18 at Treasuries plus 70 bps.

McDonald’s 4.6% notes due 2045 were unchanged over the session at 185 bps bid.

The bonds were sold in a $600 million tranche in the May 18 offering at Treasuries plus 155 bps.

The fast food chain is based in Oak Brook, Ill.

Charter widens

Charter Communications’ 4.908% notes due 2025 headed out 6 bps weaker at 244 bps bid in the secondary market, a source said.

The company sold $4.5 billion of the notes (Ba1/BBB-) on July 9 at a spread of Treasuries plus 260 bps.

Charter Communications’ 6.484% notes due 2045 eased 3 bps in secondary trading to 312 bps bid.

The company sold $3.5 billion of the bonds (Ba1/BBB-) in the July 9 offering at Treasuries plus 335 bps.

The provider of cable, internet and phone services is based in Stamford, Conn.

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