Citizens, Regions, American Tower, DTE, Entergy price; AT&T firms; Waste Management tightens

By Cristal Cody

Eureka Springs, Ark., May 10 – Investment-grade primary action remained strong as expected over Tuesday’s session with new issuance from companies including Citizens Bank, NA, Regions Financial Corp., American Tower Corp., DTE Electric Co. and Entergy Mississippi Inc.

“It’s quieter than yesterday,” a syndicate source said following Monday’s whopping $25 billion of issuance.

Market expectations remain for $45 billion or more of volume for the week.

The Canadian market also expects to see continued issuance following two deals so far, including a C$1 billion maple bond offering of 10-year notes from New York-based Wells Fargo & Co. on Tuesday.

“Both deals we had this week went very well, so the market still has got plenty of demand, it’s just a matter of finding issuers,” a source said. “The [Canadian] banks are on the sidelines for now.”

Credit spreads improved on Tuesday. The Markit CDX North American Investment Grade series 23 index closed 4 basis points tighter at a spread of 80 bps.

In the secondary market, AT&T Inc.’s 4.125% senior notes due 2026 tightened 5 bps on Tuesday but traded weaker than where they came a week ago.

Waste Management, Inc.’s 2.4% senior notes due 2023 priced on Monday traded more than 20 bps better than issuance earlier in the session.

Citizens Bank sells $1 billion

Citizens Bank sold $1 billion of 2.55% five-year senior notes at 99.907 on Tuesday, according to a company release.

The notes (Baa1/A-/BBB+) are due May 13, 2021.

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

The bank intends to use the proceeds for general corporate purposes.

Citizens Bank is part of Providence, R.I.-based Citizens Financial Group, Inc.

American Tower prices $1 billion

American Tower sold $1 billion of 3.375% 10-year senior notes at 99.004 to yield 3.49% on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The notes due Oct. 15, 2026 priced at 173 bps over Treasuries.

Barclays, BBVA Securities Inc., Mizuho Securities USA Inc., RBC Capital Markets, LLC and TD Securities (USA) LLC were the bookrunners.

Proceeds will be used to repay debt under the company’s 2013 credit facility and for general corporate purposes.

American Tower is a telecommunications provider based in Boston.

Regions reopens notes

Regions Financial priced a $600 million add-on to its 3.2% five-year senior notes at 101.269 to yield 2.906%, according to an FWP filing with the Securities and Exchange Commission on Tuesday.

The notes due Feb. 8, 2021 priced with a spread of 170 bps over Treasuries.

The company originally sold $500 million of the notes on Feb. 3 at 99.985 to yield 3.223% and a spread of Treasuries plus 195 bps.

Barclays, Deutsche Bank Securities, Goldman, Sachs & Co., J.P. Morgan Securities LLC and Regions Securities LLC were the bookrunners.

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

Regions Financial is a bank and financial services company based in Birmingham, Ala.

DTE brings $300 million

DTE Electric sold $300 million of 3.7% 30-year general and refunding mortgage bonds at 99.926 to yield 3.704% on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The series A bonds due June 1, 2046 priced with a spread of 110 bps over Treasuries.

Barclays, BNP Paribas Securities Corp., Mizuho Securities USA Inc. and Scotia Capital (USA) Inc. were the lead managers.

Proceeds will be used to repay short-term borrowings and for general corporate purposes.

DTE Electric is a Detroit-based utility company.

Entergy Mississippi sells bonds

Entergy Mississippi sold $375 million of 2.85% 12-year first mortgage bonds at 99.968 to yield 2.853% on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The bonds due June 1, 2028 (A3/A-) priced with a spread of 110 bps over Treasuries.

Citigroup Global Markets Inc., Mizuho Securities (USA) Inc. and U.S. Bancorp Investments, Inc. were the lead managers.

Proceeds will be used to repay $125 million of debt due in June, repay prior to maturity $30 million of 4.9% debt due in 2022, $75 million of 6% debt due in 2032 and $100 million of 6.25% debt due in 2034 and for general corporate purposes.

Entergy Mississippi is an electric company based in Jackson, Miss.

Wells Fargo raises C$1 billion

Wells Fargo priced C$1 billion of 2.975% 10-year senior notes at par on Tuesday in a Canadian maple bond offering, according to a market source.

The notes due May 19, 2026 (A2/A/DBRS: AA) were sold at a spread of 167 bps over the interpolated Government of Canada bond curve.

Wells Fargo Securities Canada, Ltd., TD Securities Inc., BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc. were the lead managers.

The financial services company is based in San Francisco.

AT&T improves

AT&T’s 4.125% notes due 2026 tightened 5 bps on Tuesday to head out at 161 bps bid, a market source said.

AT&T sold $900 million in a tap of the issue (Baa1//A-) on May 3 at a spread of Treasuries plus 150 bps.

The notes originally were priced on Jan. 29 in a $1.5 billion tranche at Treasuries plus 195 bps.

AT&T is a Dallas-based telecommunications company.

Waste Management firms

Waste Management’s 2.4% notes due 2023 were quoted at 67 bps offered early on Tuesday, a source said.

The company sold $500 million of the notes (Baa2/A-/BBB) on Monday at a spread of 90 bps over Treasuries.

Waste Management is a Houston-based provider of waste collection, transfer, recycling and resource recovery and disposal services.

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