DuPont, Northern Trust, Liberty Mutual, Baker Hughes, Dexia price notes; credit spreads firm

By Cristal Cody

Tupelo, Miss., April 28 – High-grade deal volume slowed to about $5.5 billion on Tuesday following about $25 billion of issuance on Monday.

DuPont de Nemours, Inc. brought $2 billion of three-year senior notes to the primary market.

The company dropped a tranche of floating-rate three-year notes from the final offering.

Northern Trust Corp. priced $1 billion of 10-year senior notes.

Liberty Mutual Group Inc. sold $500 million of 40-year senior notes.

Co-issuers Baker Hughes Holdings LLC and Baker Hughes Co-Obligor, Inc. priced $500 million of 10-year senior notes after holding fixed income investor calls on Monday.

Meanwhile, the session also saw sovereign, supranational and agency supply with a new issue from Dexia Credit Local SA.

The Brussels, Belgium-based regional bank priced $1.5 billion of three-year senior notes.

Investment-grade supply totals more than $30 billion week to date.

About $40 billion to $50 billion of volume is expected by market sources this week.

The Federal Reserve kicked off its two-day monetary policy meeting on Tuesday. No additional policy changes are expected following the meeting’s conclusion on Wednesday, sources said.

The Markit CDX North American Investment Grade 33 index tightened 2 basis points on Tuesday to a spread of 91.33 bps.

High-grade ETFs were stronger at the start of Tuesday’s session but ended mixed along with stocks as a number of governments and states begin to ease coronavirus-related restrictions.

The iShares iBoxx Investment Grade Corporate Bond ETF gained 0.27% to 129.20 on the day.

The PIMCO Investment Grade Corporate Bond index closed down 0.05% at 110.01.

In the secondary market, new issues priced Monday were mixed, a source said.

IDEX Corp.’s 3% senior notes due May 1, 2030 (Baa2/BBB/BBB+) were among the strongest in secondary trading with the bonds tightening 10 bps to 228 bps bid.

The Lake Forest, Ill.-based applied solutions company sold $500 million of the notes on Monday at 99.82 to yield 3.021% and a spread of Treasuries plus 237.5 bps.

Initial guidance was in the 300 bps over Treasuries spread area.

DuPont sells $2 billion

DuPont de Nemours priced $2 billion of 2.169% three-year senior notes (Baa1/BBB+/BBB+) on Tuesday at par to yield a spread of Treasuries plus 190 bps, according to a market source and an FWP filing with the Securities and Exchange Commission.

Initial price talk was in the Treasuries plus 275 bps area with guidance firmed to the 200 bps area, plus or minus 10 bps.

BofA Securities, Inc., Citigroup Global Markets Inc., MUFG, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC and SMBC Nikko Securities America, Inc. were the bookrunners.

The chemical company is based in Wilmington, Del.

Northern Trust raises $1 billion

Northern Trust priced $1 billion of 1.95% 10-year senior notes (A2/A+/AA-) at 99.621 and a spread of Treasuries plus 140 bps in its transaction, according to a market source and an FWP filing.

Initial price talk was in the Treasuries plus 150 bps spread area.

Morgan Stanley & Co. LLC, BofA Securities., Goldman Sachs and Wells Fargo Securities LLC were the bookrunners.

The Chicago-based financial services company plans to use the proceeds for general corporate purposes.

Baker Hughes prices

Baker Hughes priced $500 million of 4.486% 10-year senior notes (A3/A-/) at par to yield a spread of Treasuries plus 387.5 bps, according to a market source and an FWP filing.

Initial price talk was in the Treasuries plus 450 bps area.

J.P. Morgan, Morgan Stanley, BofA Securities, Citigroup, HSBC Securities (USA) Inc., Barclays, Deutsche Bank Securities Inc. and UniCredit Capital Markets LLC were the bookrunners.

Baker Hughes is an oilfield services company based in Houston.

Liberty Mutual sells notes

Liberty Mutual Group priced $500 million of 3.95% 40-year senior notes (Baa2/BBB/BBB-) in its Rule 144A and Regulation S offering at a spread of Treasuries plus 275 bps, according to a market source.

Initial price guidance was in the Treasuries plus 312.5 bps area.

Citigroup and Credit Suisse were the active managers. Passives were Deutsche and Goldman Sachs.

Liberty Mutual is a Boston-based property and casualty insurance company.

Dexia Credit prices $1.5 billion

Also, Dexia Credit Local (Aa3/AA/BBB+) priced a $1.5 billion Rule 144A and Regulation S offering of 0.75% three-year senior notes at mid-swaps plus 42 bps, or a Treasuries plus 50.15 bps spread, according to a market source.

Initial price talk was in the mid-swaps plus 45 bps area.

Barclays, Citigroup, Credit Agricole Securities (USA) Inc., J.P. Morgan and Societe Generale were the bookrunners.

Dexia Credit Local is a Brussels, Belgium-based regional bank focused on sustainable development.

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