Amgen, MUFG, Mizuho, FirstEnergy, BNP, Republic Services flood primary; Otis eyed

By Cristal Cody

Tupelo, Miss., Feb. 18 – Investment-grade issuers flooded the primary market on Tuesday after the long holiday weekend with more than $19 billion of bonds priced over the session.

Amgen Inc. sold $5 billion of senior notes in five tranches.

Mitsubishi UFJ Financial Group, Inc. priced $3.75 billion of senior notes in two parts.

Mizuho Financial Group, Inc. brought $2.35 billion of senior notes in three tranches.

FirstEnergy Corp. sold $1.75 billion of senior notes in three parts.

BNP Paribas SA placed $1.75 billion of perpetual additional tier 1 contingent convertible capital notes.

Commonwealth Edison Co. sold $1 billion of first mortgage bonds in two tranches.

Republic Services, Inc. tapped the primary market with a $1 billion two-part offering of notes.

Enbridge Inc. priced $750 million of two-year floating-rate senior notes.

National Retail Properties, Inc. came with $700 million of notes in two tranches.

Brookfield Finance Inc. sold $600 million of 30-year senior notes.

Also, KKR & Co. Inc. subsidiary KKR Group Finance Co. VI LLC priced $500 million of 30-year senior notes in a Rule 144A and Regulation S offering.

Meanwhile, Otis Worldwide Corp. held fixed income investor calls on Tuesday for a $5 billion-plus offering of notes as part of the company’s spinoff from United Technologies Corp., according to syndicate sources.

The offering follows Carrier Global Corp.’s $9.25 billion six-tranche deal on Thursday as part of its spinoff from United Technologies.

Volume is expected to stay strong this week with about $25 billion to as much as $40 billion of issuance forecast for the holiday-shortened week, according to syndicate sources.

The Markit CDX North American Investment Grade 33 index closed the day modestly softer from Friday at a spread of 44.66 basis points.

Amgen prices $5 billion

Amgen priced $5 billion of senior notes (Baa1/A-) in five tranches, according to a market source and an FWP filing with the Securities and Exchange Commission.

A $500 million tranche of 1.9% five-year notes priced at 99.796 to yield 1.943%, or a spread of Treasuries plus 55 bps.

The five-year notes were talked to price with a spread in the Treasuries plus 75 bps to 80 bps area.

Amgen priced $750 million of 2.2% seven-year notes at 99.787 to yield 2.233% and a spread of 75 bps over Treasuries.

Initial price talk on the seven-year tranche was in the 90 bps to 95 bps spread area

The company sold $1.25 billion of 2.45% 10-year notes at 99.965 to yield 2.454%, or a 90 bps over Treasuries spread.

The 10-year notes were talked to print with a spread in the Treasuries plus 105 bps to 110 bps area.

A $1.25 billion tranche of 3.15% 20-year notes priced at 99.603 to yield 3.177% and a Treasuries plus 117 bps spread, compared to initial talk in the 135 bps to 140 bps over Treasuries area.

In the final tranche, the company sold $1.25 billion of 3.375% 30-year notes at 99.962 to yield 3.377% and a 137 bps over Treasuries spread.

The 30-year notes were talked to print at the Treasuries plus 155 bps to 160 bps area.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Barclays, Morgan Stanley & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and Mizuho Securities USA LLC were the bookrunners.

Amgen is a Thousand Oaks, Calif., manufacturer and marketer of human therapeutics based upon advances in cellular and molecular biology.

Mitsubishi taps market

Mitsubishi UFJ Financial Group priced $3.75 billion of senior notes (A1/A-/A) in two parts, according to a market source.

The company sold $2.6 billion of 2.193% five-year senior notes at a spread of Treasuries plus 80 bps, versus initial talk at the Treasuries plus 90 bps to 95 bps area.

A $1.15 billion tranche of 2.559% 10-year notes priced with a Treasuries plus 100 bps spread.

The notes were talked to price at the Treasuries plus 110 bps to 115 bps area.

Morgan Stanley and JPMorgan were the bookrunners on the five-year notes.

MUFG and BofA Securities were the bookrunners on the 10-year notes.

The bank is based in Tokyo.

Mizuho sells $2.35 billion

Mizuho Financial Group priced $2.35 billion of senior notes (A1/A-) in three tranches, according to a market source.

The company sold $1.1 billion of four-year floating-rate notes at Libor plus 63 bps.

The notes due May 25, 2024 were initially talked to price at the Libor plus low 80 bps area.

A $750 million tranche of 2.226% fixed-to-floating rate notes due May 25, 2026 priced with a Treasuries plus 83 bps spread.

The notes were talked to price at the Treasuries plus 100 bps to 105 bps area.

A $500 million tranche of 2.591% fixed-to-floating rate notes due May 25, 2031 priced at a Treasuries plus 103 bps spread.

Initial price talk was at the 120 bps to 125 bps spread area.

Mizuho Securities, BofA Securities, Goldman Sachs and JPMorgan were the lead managers.

Mizuho Financial Group is a bank holding company based in Tokyo.

FirstEnergy prints

FirstEnergy sold $1.75 billion of senior notes (Baa3/BBB-/BBB) in three tranches, according to a market source and an FWP filing.

The company priced $300 million of series A 2.05% five-year notes at 99.795 to yield 2.093% and a spread of Treasuries plus 70 bps.

The five-year notes were initially talked to price at the Treasuries plus 105 bps area.

FirstEnergy sold $600 million of series B 2.65% 10-year notes at 99.929 to yield 2.658%. The notes priced at a Treasuries plus 110 bps spread, tighter than initial talk in the 135 bps to 140 bps area.

An $850 million tranche of series C 3.4% 30-year notes priced at 99.849 to yield 3.408% and with a spread of 140 bps over Treasuries.

Initial talk was at the Treasuries plus 170 bps to 175 bps spread area.

Barclays, BofA Securities, Citigroup, JPMorgan, Morgan Stanley, Mizuho, PNC Capital Markets LLC, RBC Capital Markets, LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc. were the bookrunners.

The diversified energy holding company is based in Akron, Ohio.

BNP sells securities

BNP Paribas (Baa1/A+/A+) came with $1.75 billion of 4.5% perpetual additional tier 1 contingent convertible capital notes (Ba1/BBB-/BBB-) at par on Tuesday, according to a market source.

The notes were talked to price in the 4.75% area, which was revised from initial price talk at the 5.125% area.

BNP Paribas Securities Corp. was the bookrunner.

BNP Paribas is a Paris-based banking and financial services company.

Commonwealth Edison prices

Commonwealth Edison sold $1 billion of first mortgage bonds (A1/A/A) in two tranches on Tuesday, according to a market source and an FWP filing.

A $350 million tranche of 2.2% 10-year first mortgage bonds priced at 99.696 to yield 2.234%, or a spread of 68 bps over Treasuries.

The company sold $650 million of 3% 30-year bonds at 99.862 to yield 3.007% and a Treasuries plus 100 bps spread.

The 10-year bonds were talked to price in the 85 bps spread area, while the 30-year tranche was initially talked to print at the Treasuries plus 115 bps area.

BNP Paribas, BofA Securities, Citigroup, MUFG, Credit Agricole Securities (USA) Inc., PNC Capital Markets and SMBC Nikko were the bookrunners.

Commonwealth Edison is a unit of Chicago-based energy provider Exelon Corp.

Republic Services eyed

Republic Services sold $1 billion of notes (Baa2/BBB+/BBB) in two parts on Tuesday, according to a market source and an FWP filing.

A $600 million tranche of 2.3% 10-year notes priced at 99.707 to yield 2.333% and a spread of 78 bps over Treasuries.

Initial price talk was in the Treasuries plus 95 bps area.

Republic Services sold $400 million of 3.05% 30-year notes at 99.26 to yield 3.088%, or 108 bps over Treasuries, compared to talk at the 125 bps spread area.

BofA Securities, JPMorgan, BNP Paribas, Mizuho, Wells Fargo Securities LLC, Barclays, U.S. Bancorp Investments, Inc., SunTrust Robinson Humphrey, Inc. and Scotia were the bookrunners on the 10-year notes.

The bookrunners on the 30-year tranche were BofA Securities, JPMorgan, BNP Paribas, SMBC Nikko, Barclays, Wells Fargo, SunTrust and RBC Capital Markets.

Republic Services is a waste collection company based in Phoenix.

National Retail prices

National Retail Properties sold $700 million of notes (Baa1/BBB+/BBB+) in two tranches on Tuesday, according to a market source and an FWP filing.

A $400 million tranche of 2.5% notes due April 15, 2030 priced at 99.678 to yield 2.536% and a spread of 98 bps over Treasuries.

Initial price talk was at the Treasures plus 110 bps to 115 bps area.

National Retail sold $300 million of 3.1% notes due April 15, 2050 at 97.978 to yield 3.205%, or a Treasuries plus 120 bps spread.

The 30-year tranche was talked to price at the Treasuries plus 130 bps to 135 bps area.

BofA Securities, Wells Fargo, Citigroup, Jefferies LLC, RBC Capital Markets, SunTrust and U.S. Bancorp were the bookrunners.

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

Enbridge sells floaters

Enbridge priced $750 million of two-year floating-rate senior notes (Baa2/BBB+/BBB+) at par to yield Libor plus 50 bps, according to an FWP filing.

BofA Securities and JPMorgan were the bookrunners.

The notes are guaranteed by Spectra Energy Partners, LP and Enbridge Energy Partners, LP.

The oil and gas distribution and transportation company is based in Calgary, Alta.

Brookfield taps primary

Brookfield Finance sold $600 million of 3.45% senior notes due April 15, 2050 (Baa1/A-/A-/DBRS: A (low)) at a spread of 150 bps over Treasuries, according to a market source and an FWP filing.

The notes priced at 99.058 to yield 3.501%.

Initial price talk was at the Treasuries plus 165 bps area.

Deutsche Bank Securities Inc., BofA Securities and SMBC Nikko were the bookrunners.

The notes will be guaranteed by Brookfield Asset Management Inc., a Toronto-based alternative asset manager with about $250 billion in assets under management.

KKR prices notes

KKR Group Finance Co. VI’s $500 million of 3.625% 30-year senior notes (A/A) priced at a spread of 165 bps over Treasuries, according to a market source and a news release.

The notes were talked to price at the Treasuries plus 165 bps spread area.

Citigroup, Goldman Sachs, Mizuho Securities and Morgan Stanley were the bookrunners.

The notes will be guaranteed by KKR & Co. Inc. and subsidiary KKR Group Partnership LP.

KKR is a New York-based global investment firm.

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