John Deere sells four tranches; Credit Agricole, Eversource price; deal pipeline grows

By Cristal Cody

Tupelo, Miss., Jan. 3 – High-grade supply remained busy in the second session of the year on Wednesday.

Issuers including John Deere Capital Corp., Credit Agricole SA and Eversource Energy priced notes.

John Deere Capital sold $1.75 billion of notes in four tranches.

Credit Agricole priced $1.25 billion of 15-year subordinated notes.

Eversource Energy came with a $650 million two-part offering of senior notes.

The high-grade bond deal pipeline also is building.

Athene Global Funding plans to hold fixed-income investor calls on Thursday and Friday for an offering of dollar-denominated senior notes (//BBB), according to a market source.

The bookrunners are Barclays, Goldman Sachs & Co. and Wells Fargo Securities LLC.

Also, Texas Eastern Transmission, LP (Baa1/BBB+/BBB+) on Wednesday finished a two-day round of fixed-income investor calls. The company is expected to price a Rule 144A and Regulation S two-tranche offering of 10- and 30-year senior notes, according to a market source.

Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey, Inc. are the bookrunners.

The Markit CDX North American Investment Grade 29 index tightened more than 1 basis point to end the day at a spread of 47 bps.

John Deere sells $1.75 billion

John Deere Capital priced $1.75 billion of series G senior medium-term notes (A2/A/A) in four tranches in Wednesday’s offering, according to FWP filings with the Securities and Exchange Commission.

The company sold $250 million of three-year floating-rate notes at par to yield Libor plus 16 bps.

John Deere Capital sold $600 million of 2.35% three-year fixed-rate notes at 99.948 to yield 2.368%, or a Treasuries plus 35 bps spread.

In the five-year tranche, the company priced $500 million of 2.7% notes at 99.926 to yield 2.716% and a spread of 47 bps over Treasuries.

The company also sold $400 million of 3.05% 10-year notes at 99.838 with a 3.069% yield and a Treasuries plus 62 bps spread.

Citigroup Global Markets, HSBC Securities (USA) Inc. and BofA Merrill Lynch were the bookrunners.

John Deere Capital is a financing arm of Moline, Ill.-based farm equipment supplier Deere & Co.

Credit Agricole in primary

Credit Agricole’s $1.25 billion sale of 4% 15-year subordinated tier 2 notes (Baa2/BBB/A) on Wednesday priced at a spread of 162.5 bps over Treasuries, according to a market source.

The notes came tighter than initial price talk in the Treasuries plus 180 bps area.

Credit Agricole Corporate and Investment Bank was the bookrunner.

Credit Agricole is an investment banking company based in Montrouge, France.

Eversource sells two tranches

Eversource Energy priced a $650 million two-part offering of senior notes (Baa1/A/BBB+) in a new issuance and an add-on to an existing issue during the session, according to a market source and FWP filings with the SEC.

Eversource Energy placed a $200 million add-on to its 2.5% series I notes due March 15, 2021 at 100.177 to yield 2.44%. The reopened notes priced with a Treasuries plus 42 bps spread.

The company originally sold $250 million of the notes at 99.789 to yield 2.545%, or Treasuries plus 112 bps, on March 7, 2016. The total outstanding now is $450 million.

The company also priced $450 million of new 3.3% series M notes due Jan. 15, 2028 at 99.932 to yield 3.308% and a spread of Treasuries plus 85 bps.

Both tranches priced on the tight side of guidance.

Citigroup Global Markets., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, Wells Fargo Securities, PNC Capital Markets LLC and U.S. Bancorp Investments Inc. were the bookrunners.

The Boston-based company is engaged in the energy delivery business through utility subsidiaries.

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