Daimler sells seven tranches; Ford, Texas Instruments print; two issuers price on soft side

By Cristal Cody

Tupelo, Miss., April 30 – Investment-grade supply ramped up on Monday with new pricing action led by a $4 billion seven-tranche note deal from Daimler Finance North America LLC.

Ford Motor Credit Co. LLC brought $1.5 billion of notes in two tranches on the tight side of guidance on Monday.

Texas Instruments Inc. tapped the primary market with $1.3 billion of 30-year notes.

Indiana Michigan Power Co. sold $350 million of 10-year senior notes on the wide side of price guidance.

DTE Electric Co. placed $525 million of 30-year general and refunding mortgage bonds on the tight side of guidance during the session.

Kansas City Southern’s $500 million of 30-year guaranteed senior notes priced on the wide side of guidance.

About $25 billion to $30 billion of total supply is expected by market sources for the week, with heavy deal volume forecast for May.

About $130 billion to as much as $160 billion of issuance is expected by syndicate sources for the month ahead.

The Markit CDX North American Investment Grade 30 index eased about 1 basis point during the session to close at a spread of 61 bps.

Daimler prices $4 billion

Daimler Finance North America sold $4 billion of senior notes (A2/A/) in seven parts on Monday, according to a market source.

The company priced $500 million of two-year floating-rate notes at Libor plus 39 bps.

Daimler sold $500 million of 3.10% two-year fixed-rate notes with a spread of 65 bps over Treasuries.

The $700 million tranche of three-year floaters priced at Libor plus 55 bps.

Daimler placed $1 billion of 3.35% three-year fixed-rate notes with a spread of 77 bps over Treasuries.

The company sold $400 million of five-year floaters at Libor plus 84 bps.

In the five-year fixed-rate tranche, Daimler priced $600 million of 3.7% notes with a Treasuries plus 95 bps spread.

The company also priced a $300 million tap of its 3.7% notes due Feb. 22, 2028 at a spread of Treasuries plus 105 bps. The company first priced $625 million of the notes on Feb. 15 at a Treasuries plus 85 bps spread. The total outstanding now is $925 million.

Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, MUFG and TD Securities (USA) LLC were the bookrunners.

Daimler Finance is a Wilmington, Del.-based financing arm of Daimler North America Corp.

Ford raises $1.5 billion

Ford Motor Credit (Baa2/BBB/BBB) priced a $1.5 billion two-part offering of notes on the tight side of guidance on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

Ford Motor Credit priced $600 million of floating-rate notes due Feb. 15, 2023 at par to yield Libor plus 123.5 bps.

The company sold $900 million of 4.14% fixed-rate notes due Feb. 15, 2023 at par to yield a spread of 135 bps over Treasuries.

Commerz Markets LLC, Goldman Sachs, Lloyds Securities Inc., BofA Merrill Lynch, Barclays, Mizuho Securities USA Inc. and NatWest Markets Securities Inc. were the bookrunners.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based automaker Ford Motor Co.

Texas Instruments prints

Texas Instruments sold $1.3 billion of 4.15% 30-year notes (A1/A+/) on Monday at 99.556 to yield 4.176%, according to an FWP filing with the SEC.

The notes (A1/A+/) priced with a spread of 107 bps over Treasuries, on the tight side of guidance in the Treasuries plus 110 bps area, a source said.

Citigroup Global Markets, Mizuho Securities, Morgan Stanley & Co. LLC, Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch and MUFG were the bookrunners.

Texas Instruments is a Dallas-based semiconductor designer and manufacturer.

DTE Electric sells bonds

DTE Electric priced $525 million of 4.05% 30-year general and refunding mortgage bonds (Aa3/A/A+) on Monday at a spread of 97 bps over Treasuries, on the tight side of guidance in the Treasuries plus 100 bps area, according to a market source and an FWP filed with the SEC.

The bonds priced at 99.551 to yield 4.076%.

Barclays, BNP Paribas Securities Corp., BofA Merrill Lynch and TD Securities were the bookrunners.

The company held fixed-income investor calls for the green bond offering on April 17.

The electric company is based in Allentown, Pa.

Kansas City Southern prices

Kansas City Southern priced $500 million of 4.7% 30-year guaranteed senior notes (Baa3/BBB-/BBB) on Monday at a spread of Treasuries plus 160 bps, on the wide side of guidance, according to a market source and a company press release.

The bookrunners were BofA Merrill Lynch, J.P. Morgan Securities and Morgan Stanley.

The notes are guaranteed by certain of Kansas City Southern’s domestic subsidiaries.

Proceeds will be used to repay commercial paper, to refinance a locomotive lease and certain equipment loans and for general corporate purposes.

The rail transportation holding company for Kansas City Southern Railway Co. is based in Kansas City, Mo.

Indiana Michigan Power prices

Indiana Michigan Power sold $350 million of 3.85% 10-year senior notes (A3/A-/) at 99.685 to yield 3.888% on Monday, according to a market source and an FWP filing with the SEC.

The notes priced on the wide side of guidance with a spread of 95 bps over Treasuries.

BNY Mellon Capital Markets LLC, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC and PNC Capital Markets LLC were the bookrunners.

The subsidiary of American Electric Power is based in Fort Wayne, Ind.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.