Delta, Cintas, Host Hotels, Vulcan Materials, Svensk price; Burlington Northern softens

By Cristal Cody

Tupelo, Miss., March 9 – High-grade deal volume held strong over Thursday’s session with about $5 billion of bonds priced.

Week to date, more than $52 billion of investment-grade corporate and SSA bonds have priced, a market source said.

On Thursday, Delta Air Lines Inc. sold $2 billion of split-rated senior notes in two tranches.

Cintas Corp. subsidiary Cintas Corp. No. 2 priced $1.7 billion of senior notes in three parts, including a reopening of a 2012 issue.

Host Hotels & Resorts, LP upsized its offering of seven-year senior notes on Thursday to $400 million from $350 million.

Vulcan Materials Co. brought $350 million of 10-year senior notes to the market.

Swedish Export Credit Corp. priced a $300 million tap of its floating-rate notes due Oct. 4, 2018.

Neuberger Berman Group LLC sold $300 million of 10-year senior notes.

The Markit CDX North American Investment Grade index closed the day about 1 basis point wider at a spread of 64 bps.

In the secondary market, Burlington Northern Santa Fe, LLC’s $1.25 billion of senior debentures (A3/A/) priced in two parts at the start of the week traded weaker on Thursday.

Delta Air Lines prices

Delta Air Lines sold $2 billion of split-rated senior notes (Baa3/BB+/BBB-) in two parts on Thursday, according to a market source.

Delta Air Lines priced $1 billion of 2.875% notes due March 13, 2020 at a spread of Treasuries plus 130 bps.

The company sold $1 billion of 3.625% notes due March 15, 2022 at a Treasuries plus 150 bps spread.

Both tranches priced on the tight side of guidance.

Barclays, Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds will be used for general corporate purposes, including debt repayment, according to a 424B5 filing with the Securities and Exchange Commission.

Delta is a commercial airline based in Atlanta.

Cintas brings $1.7 billion

Cintas No. 2 priced $1.7 billion of senior notes (A3/BBB+/) in three parts on Thursday, according to a market source.

The issuer sold $650 million of 2.9% notes due April 1, 2022 at a spread of Treasuries plus 80 bps.

Cintas priced a $50 million tap of its 3.25% notes due June 1, 2022 at a Treasuries plus 80 bps spread. The notes originally priced in a $250 million tranche on June 5, 2012 at a spread of 170 bps over Treasuries.

The total outstanding is $300 million.

Cintas also sold $1 billion of 3.7% 10-year notes at a spread of 115 bps over Treasuries.

J.P. Morgan Securities and KeyBanc Capital Markets Inc. were the bookrunners.

Proceeds will be used to help fund the purchase of G&K Services, Inc. and for general corporate purposes, including debt repayment, according to a 424B5 filing with the SEC.

Cintas is a Cincinnati-based provider of uniforms and other workplace products.

Minnetonka, Minn.-based G&K Services is a service-focused provider of branded uniform and facility services programs.

Host Hotels sells notes

Host Hotels & Resorts priced $400 million of 3.875% series G seven-year senior notes (Baa2/BBB-/BBB) at a spread of Treasuries plus 152 bps on Thursday, according to an FWP filing with the SEC.

The notes due April 1, 2024 priced at 99.575 to yield 3.944%.

Deutsche Bank Securities Inc., Goldman Sachs, Wells Fargo Securities LLC, BofA Merrill Lynch and J.P. Morgan Securities were the bookrunners.

Proceeds will be used to repay borrowings under the revolving portion of the company’s credit facility and for general corporate purposes.

Host Hotels is a real estate investment trust based in Bethesda, Md., that owns and operates hotel properties.

Vulcan raises $350 million

Vulcan Materials sold $350 million of 3.9% 10-year senior notes (Baa/BBB/BBB-) on Thursday at a spread of 135 bps over Treasuries, according to an FWP filing with the SEC.

The notes due April 1, 2027 priced at 99.603 to yield 3.948%.

Bookrunners were U.S. Bancorp Investments Inc., Wells Fargo Securities, BofA Merrill Lynch, Goldman Sachs and SunTrust Robinson Humphrey Inc.

The company plans to use the proceeds from the offering for general corporate purposes.

The construction materials manufacturer is based in Birmingham, Ala.

Swedish Export Credit reopens

Swedish Export Credit (Aa1/AA+/) sold a $300 million add-on to its floating-rate notes due Oct. 4, 2018 at Libor plus 10 bps on Thursday, according to an FWP filing with the SEC.

The notes priced at 100.101 to yield Libor plus 4 bps.

HSBC Bank plc and Toronto-Dominion Bank were the lead managers.

Swedish Export Credit Tap originally priced $500 million of the notes on Sept. 27 at par to yield Libor plus 10 bps. The total outstanding is $$800 million.

The company will apply to list the notes on the Irish Stock Exchange.

Swedish Export Credit is a Stockholm-based financial services company for the Swedish export industry.

Neuberger Berman taps market

Neuberger Berman Group sold $300 million of 4.5% 10-year senior notes at a spread of Treasuries plus 200 bps on Thursday, according to a market source.

The notes (Baa3/BBB/) are due March 15, 2027.

J.P. Morgan Securities was the bookrunner.

Neuberger Berman Group is an employee-owned investment management firm with global headquarters in New York.

Burlington Northern softens

Burlington Northern Santa Fe’s 3.25% debentures due June 15, 2027 traded lower over the day, going out at 99.08 from where the notes were seen at 99.50 in early secondary trading, according to a market source.

The company priced $500 million of the debentures on Monday at 99.747 to yield 3.278%, or a spread of Treasuries plus 78 bps.

Burlington Northern Santa Fe’s 4.125% debentures due June 15, 2047 remained soft on the day at 96.77 in late afternoon secondary trading. The notes were quoted at 96.72 over the morning and last traded on Wednesday at 97.48.

Burlington Northern Santa Fe’s 4.125% debentures due June 15, 2047 softened in early secondary trading to 96.72. The notes last traded on Wednesday at 97.48.

The $750 million tranche priced on Monday at 98.857 to yield 4.191% and a Treasuries plus 108 bps spread.

The holding company for railroad transportation subsidiaries is based in Fort Worth.

© 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.