MPLX, CSX, Paccar Financial tap primary market; Volkswagen in high-grade deal pipeline

By Cristal Cody

Tupelo, Miss., Nov. 7 – Investment-grade supply climbed on Wednesday following the mid-term elections and light deal volume in the first two sessions.

MPLX LP priced $2.25 billion of fixed-rate senior notes in two tranches.

CSX Corp. sold $1 billion of senior notes in two parts.

Paccar Financial Corp. brought $150 million of two-year medium-term floating-rate notes to the market.

Mednax Inc. priced $500 million of split-rated senior notes due 2026 (Ba2/BBB-/) in an offering downsized from $750 million.

In addition, Shell International Finance BV, Florida Power & Light Co. and Santander UK Group Holdings plc were marketing notes.

In other action on Wednesday, Volkswagen Group of America Finance LLC resumed a second day of fixed income investor calls for a Rule 144A and Regulation S dollar-denominated multiple-tranche deal.

Just over $2 billion of investment-grade bonds priced on Tuesday following $1.5 billion of issuance on Monday.

About $15 billion to as much as $30 billion of supply is forecast by market sources for the week.

Credit spreads continued to improve on Wednesday. The Markit CDX North American Investment Grade 31 index closed about 1 basis point better at a spread of 63 bps.

MPLX prices $2.25 billion

MPLX priced a $2.25 billion two-tranche offering of fixed-rate senior notes (Baa3/BBB/BBB-) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The company sold $750 million of 4.8% 10-year notes at 99.432 to yield 4.872%, or a spread of Treasuries plus 165 bps.

A $1.5 billion tranche of 5.5% 30-year notes were sold at 98.031 to yield 5.637%. The notes priced with a spread of Treasuries plus 220 bps.

J.P. Morgan Securities LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., BofA Merrill Lynch, Mizuho Securities USA LLC and MUFG were the bookrunners.

MPLX is a Findlay, Ohio-based owner, operator and developer of crude oil pipeline and midstream assets in the United States.

CSX raises $1 billion

CSX priced $1 billion of senior notes (Baa1/BBB+/) in two tranches on Wednesday, according to an FWP filing with the SEC.

The company sold $350 million of 4.25% long 10-year notes at 99.641 to yield 4.294%. The notes priced with a spread of Treasuries plus 108 bps.

CSX placed $650 million of 4.75% 30-year notes at 99.068 to yield 4.809% and a spread of 138 bps over Treasuries.

Citigroup Global Markets, Morgan Stanley & Co. LLC and UBS Securities LLC were the bookrunners.

The transportation company is based in Jacksonville, Fla.

Paccar sells notes

Paccar Financial (A1/A+/) sold $150 million of two-year medium-term floating-rate notes at par to yield Libor plus 20 bps on Wednesday, according to an FWP filing with the SEC.

MUFG was the bookrunner.

Paccar Financial is a financing arm of Bellevue, Wash.-based Paccar Inc.

Volkswagen offers notes

Volkswagen Group of America Finance (A3/BBB+/) plans to price a Rule 144A and Regulation S dollar-denominated multiple-tranche offering of notes, according to a market source.

The company will continue a two-day session of fixed income investor calls on Wednesday for the deal.

BBVA Securities Inc., Citigroup Global Markets, HSBC Securities (USA) Inc., J.P. Morgan Securities and Mizuho Securities are the arrangers.

Volkswagen Group of America is a Herndon, Va.-based financing arm and subsidiary of Volkswagen Group of America, Inc.

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