International Paper, Alphabet, Hershey, Mattel bring bonds; Hershey firms; CDX softens

By Cristal Cody

Eureka Springs, Ark., Aug. 2 – Issuers including International Paper Co. Alphabet Inc., Hershey Co. and Mattel, Inc. tapped the investment-grade primary market on Tuesday.

International Paper priced a $2.3 billion two-part offering of senior notes.

Google parent Alphabet sold $2 billion of 10-year senior notes.

Hershey brought an $800 million offering of 10- and 20-year notes during the session.

Mattel was in the primary market with $350 million of five-year notes.

Hershey’s notes traded about 2 basis points better in the secondary market as the session closed.

Earlier, Synchrony Financial’s 3.7% senior notes due 2026 priced on Monday traded 1 bp tighter.

Verizon Communications Inc.’s 2.625% senior notes due 2026 brought to market in the previous week tightened 4 bps from Monday.

The Markit CDX North American Investment Grade index closed 2 bps weaker at a spread of 77 bps.

International Paper prices $2.3 billion

International Paper sold $2.3 billion of senior notes (Baa2/BBB/) in two tranches, according to a company release and a market source on Tuesday.

The company sold $1.1 billion of 3% notes due Feb. 15, 2027 at 99.624 with a spread of 150 bps over Treasuries.

International Paper priced $1.2 billion of 4.4% notes due Aug. 15, 2047 at 99.899 and a spread of 210 bps plus Treasuries.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Regions Securities LLC, BofA Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and DNB Markets were the bookrunners.

Proceeds will be used to pay the purchase price for Weyerhaeuser Company's pulp business, to fund about $500 million of contributions to a pension plan, to repay or repurchase certain outstanding debt securities through open market repurchases, redemption or otherwise, or for general corporate purposes.

International Paper is a packaging and paper manufacturing company based in Memphis.

Alphabet sells $2 billion

Alphabet priced $2 billion of 1.998% 10-year senior notes at 97.919 to yield 2.231% on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The notes due Aug. 15, 2026 (Aa2/AA/) sold with a spread of 68 bps plus Treasuries.

The bookrunners were J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Wells Fargo Securities LLC.

Proceeds will be used for general corporate purposes, including the repayment of outstanding commercial paper.

Mountain View, Calif.-based Alphabet is the holding company for Google and other subsidiaries.

Hershey sells two tranches

Hershey sold $800 million of 10- and 20-year notes on Tuesday, according to a company release and a market source.

The company priced $500 million of 2.3% 10-year notes with a spread of 80 bps plus Treasuries, on the tight side of price talk of 85 bps plus Treasuries area and initial price guidance in the 90 bps area.

Hershey sold $300 million of 3.375% 30-year notes at 110 bps plus Treasuries. The notes priced on the tight side of guidance of 110 bps over Treasuries area and tightened from initial price talk of 120 bps area over Treasuries.

The bookrunners were BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC.

Proceeds will be used to repay at maturity the $250 million total principal of 5.45% notes due 2016 and $250 million total principal of 1.5% notes due 2016, to fund the acquisition of Ripple Brand Collective, LLC and for general corporate purposes.

In the secondary market, Hershey’s 2.3% notes due 2026 headed out at 78 bps bid, 75 bps offered, a trader said. The notes were seen earlier in aftermarket trading at 76 bps offered.

The tranche of 3.375% notes due 2046 traded late afternoon at 108 bps bid, 105 bps offered in the secondary market. Soon after pricing, the notes traded at 106 bps offered.

The maker of chocolate and confectionery products is based in Hershey, Pa.

Mattel sells $350 million

Mattel sold $350 million of 2.35% five-year notes with a spread of 130 bps over Treasuries on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The notes due Aug. 15, 2021 (Baa1/BBB+/) priced at 99.882 to yield 2.375%.

BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to pay at maturity the outstanding $300 million of 2.5% notes due Nov. 1, 2016 and for general corporate purposes.

The toymaker is based in El Segundo, Calif.

Synchrony Financial firms

Synchrony Financial’s 3.7% senior notes due 2026 firmed 1 bp in early secondary trading to 224 bps offered, according to a market source.

The notes priced on Monday at a spread of Treasuries plus 225 bps.

Synchrony is a consumer financial services company based in Stamford, Conn.

Verizon tightens

Verizon’s 2.625% notes due 2026 traded 4 bps better early Tuesday at 113 bps offered, a market source said.

Verizon sold $2.25 billion of the notes (Baa1//A-) on Wednesday at Treasuries plus 115 bps.

The telecommunications company is based in New York City.

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