Ford, Dr Pepper, Delmarva Power, Lincoln, National Retail price; credit spreads tighten

By Cristal Cody

Eureka Springs, Ark., Dec. 5 – High-grade companies including Ford Motor Co., Dr Pepper Snapple Group Inc., Delmarva Power & Light Co., Lincoln National Corp. and National Retail Properties, Inc. tapped the U.S. primary market on Monday.

Ford Motor priced $2.8 billion of senior notes in two tranches.

Dr Pepper Snapple Group brought a $1.55 billion four-part offering of senior notes.

Lincoln National sold $400 million of 10-year senior notes.

Delmarva Power & Light raised $175 million in an add-on to its 4.15% first mortgage bonds due May 15, 2045.

National Retail Properties sold $350 million of 10-year notes during the session.

The Markit CDX North American Investment Grade index firmed about 1 bp to close at a spread of 72 bps.

In the secondary market, Wells Fargo & Co.’s 4.75% notes due 2046 priced on Thursday traded about 1 bp softer earlier in the day.

Allstate Corp.’s new 4.2% senior notes due 2046 were unchanged from Friday in secondary trading.

Ford Motor sells $2.8 billion

Ford Motor priced $2.8 billion of senior notes (Baa2//BBB) in two parts on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

Ford Motor sold $1.5 billion of 4.346% 10-year notes at par to yield a spread of 195 bps over Treasuries.

The company priced $1.3 billion of 5.291% 30-year notes at par with a spread of 220 bps plus Treasuries.

Both tranches priced on the tight side of guidance.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

The automaker is based in Dearborn, Mich.

Dr Pepper Snapple prices

Dr Pepper Snapple Group brought a $1.55 billion four-part offering of fixed-rate senior notes (Baa1/BBB+/) to market on Monday, according to a market source and an FWP filing with the SEC.

The company sold $250 million of 2.53% five-year notes at 99.96 to yield 2.539% and a spread of 70 bps over Treasuries.

Dr Pepper Snapple priced $500 million of 3.13% seven-year notes at 99.962 to yield 3.136%, or Treasuries plus 95 bps.

The $400 million tranche of 3.43% notes due June 15, 2027 priced at 99.956 to yield 3.435% and a spread of 105 bps plus Treasuries.

Dr Pepper Snapple also sold $400 million of 4.42% 30-year notes at 99.917 to yield 4.425%, or 135 bps over Treasuries.

The notes priced on the tight side of guidance.

Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Morgan Stanley and Deutsche Bank Securities were the bookrunners.

Proceeds will be used to fund the company’s planned merger with Hamilton, N.J.-based Bai Brands LLC, an antioxidant infusion drink producer, and for general corporate purposes.

Dr. Pepper is a maker of non-alcoholic beverages based in Plano, Texas.

Lincoln National sells $400 million

Lincoln National sold $400 million of 3.625% 10-year senior notes with a spread of 125 bps over Treasuries on Monday, according to an FWP filing with the SEC.

The notes due Dec. 12, 2026 (Baa1/A-/BBB+) priced at 99.882 to yield 3.64%.

Wells Fargo Securities LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and BNP Paribas Securities Corp. were the bookrunners.

Proceeds will be used for the company’s planned tender offers for up to $175 million of 8.75% senior notes due July 1, 2019 and up to $150 million of 6.15% senior notes due April 7, 2036 and for general corporate purposes.

Lincoln National is a holding company for insurance and retirement subsidiaries and is based in Radnor, Pa.

Delmarva Power reopens

Delmarva Power & Light priced a $175 million add-on to its 4.15% first mortgage bonds (A2/A/A) due May 15, 2045 on Monday at 100.443 to yield 4.123%, according to an FWP filing with the SEC.

The bonds were sold with a spread of 105 bps over Treasuries.

BNP Paribas Securities, MUFG and CIBC World Markets Corp. were the bookrunners.

Proceeds will be used to repay maturing notes.

Delmarva originally issued $200 million of the bonds on May 11, 2015. The total outstanding is $375 million.

Delmarva is an electric and natural gas utility based in Wilmington, Del.

National Retail prices $350 million

National Retail Properties sold $350 million of 3.6% 10-year notes on Monday at a spread of 135 bps over Treasuries, according to a market source.

The notes due Dec. 15, 2026 (Baa1/BBB+/BBB+) priced on the tight side of guidance.

BofA Merrill Lynch, Citigroup Global Markets Inc., Wells Fargo Securities, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. were the bookrunners.

The notes have a make-whole call and a par call, according to a 424B5 filed with the Securities and Exchange Commission.

Proceeds will be used to repay debt under a credit facility and for general corporate purposes.

National Retail Properties is an Orlando-based real estate investment trust.

Wells Fargo softens

Wells Fargo’s 4.75% notes due 2046 eased about 1 bp to 166 bps bid, according to a market source early Monday.

The notes traded on Friday at 165 bps bid, 163 bps offered.

Wells Fargo sold $2 billion of the 30-year notes on Thursday at a spread of 165 bps over Treasuries.

The financial services company is based in San Francisco.

Allstate stable

Allstate’s 4.2% notes due 2046 were unchanged early Monday from Friday at 106 bps offered in secondary trading, according to a market source.

The bonds were seen on Friday at 109 bps bid, 106 bps offered.

The company sold $700 million of the 30-year notes (A3/A-/) on Thursday at spread of 110 bps plus Treasuries.

Allstate is a Northbrook, Ill.-based insurance company.

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