Bunge, Expedia, Hyundai, Allegion, National Fuel price new notes; strong supply forecast

By Cristal Cody

Tupelo, Miss., Sept. 18 – The high-grade bond market kicked the week off with strong primary action on Monday.

Bunge Ltd. Finance Corp. brought $1 billion of senior guaranteed fixed-rate notes in two parts to the primary market.

Expedia Inc. sold $1 billion of long 10-year split-rated senior notes.

Hyundai Capital Services Inc. came with $1 billion of notes in three tranches.

Allegion US Holding Co. Inc. placed $800 million of senior notes in two parts during the session.

National Fuel Gas Co. sold $300 million of 10-year notes.

Also, Georgia Power Co. priced $270 million of $25-par series 2017A junior subordinated notes.

Deal issuance is expected to stay busy over the week with about $25 billion to $30 billion of volume forecast, according to a market source.

The Markit CDX North American Investment Grade 28 index closed mostly unchanged at a spread of 56 basis points.

Bunge sells bonds

Bunge Ltd. Finance sold $1 billion of senior guaranteed fixed-rate notes (Baa2/BBB/BBB) in two tranches on Monday, according to a market source.

The company priced $400 million of 3% five-year notes at a spread of Treasuries plus 120 bps.

Bunge sold $600 million of 3.75% 10-year notes at a 155 bps spread over Treasuries.

Both tranches priced on the tight side of talk.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities and SMBC Nikko Securities America Inc. were the bookrunners.

The notes are fully and unconditionally guaranteed by parent company Bunge Ltd.

Proceeds will be used to pay for the company’s $940 million acquisition of IOI Loders Croklaan, according to a 424B3 filing with the Securities and Exchange Commission.

The agribusiness and food company is based in White Plains, N.Y.

Expedia prices $1 billion

Expedia (Ba1/BBB-/BBB-) priced $1 billion of long 3.8% 10-year split-rated senior notes on Monday in a private Rule 144A and Regulation S offering at a spread of Treasuries plus 160 bps, according to a market source.

The notes due Feb. 15, 2028 priced on the tight side of talk in the 165 bps area and better than initial guidance given in the Treasuries plus 180 bps area.

BofA Merrill Lynch, Goldman Sachs & Co. and J.P. Morgan Securities were the bookrunners.

Proceeds from the deal will be used for general corporate purposes.

Expedia is a Bellevue, Wash.-based online travel company.

Hyundai in primary

Hyundai Capital Services sold $1 billion of notes (Baa1/A-/BBB+) in three tranches in a Rule 144A and Regulation S offering on Monday, according to a market source.

The company priced $250 million of three-year floating-rate notes at Libor plus 100 bps.

The $300 million tranche of 2.75% three-year fixed-rate notes priced with a spread of 122 bps over Treasuries.

Hyundai Capital sold $450 million of 3.25% five-year notes with a Treasuries plus 142 bps spread.

BofA Merrill Lynch, Barclays, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, Societe Generale and SMBC Nikko were the bookrunners.

Hyundai Capital Services is a Seoul, South Korea-based unit of the Hyundai Motor Co.

Allegion sells two tranches

Allegion US Holding sold $800 million of senior notes (Baa3/BBB/BBB-) in two tranches on Monday, according to an FWP filing with the SEC.

The company priced $400 million of 3.2% seven-year notes at 99.944 to yield 3.209% and a spread of 115 bps over Treasuries.

Allegion sold $400 million of 3.55% 10-year notes at 99.758 to yield 3.579%, or a 135 bps plus Treasuries spread.

J.P. Morgan Securities, BofA Merrill Lynch, Wells Fargo Securities, LLC, BNP Paribas Securities Corp., Citigroup Global Markets, Credit Suisse Securities (USA) LLC and Goldman Sachs were the bookrunners.

Proceeds will be used to redeem the company’s $300 million of 5.75% senior notes due 2021 and $300 million of 5.875% senior notes due 2023, to repay $165 million of borrowings under its new revolving credit facility and for general corporate purposes.

Allegion US Holding is a subsidiary of Allegion plc, a security products company based in Carmel, Ind.

National Fuel Gas prices

National Fuel Gas priced $300 million of 3.95% 10-year notes in an offering on Monday at a spread of Treasuries plus 180 bps, according to an FWP filing with the SEC.

The notes (Baa3/BBB/BBB) priced at 99.317 to yield 4.034%.

BofA Merrill Lynch, U.S. Bancorp Investments, Inc. and Wells Fargo Securities were the bookrunners.

Proceeds will be used for general corporate purposes, including to repurchase or redeem the company’s 6.5% senior notes due April 2018.

National Fuel Gas is a Williamsville, N.Y.-based energy company.

Georgia Power prints

Georgia Power priced $270 million of 5% series 2017A junior subordinated notes due Oct. 1, 2077 (Baa1/BBB/A-) at $25.00 per share on Monday, according to an FWP filing with the SEC.

BofA Merrill Lynch, Morgan Stanley, UBS Securities LLC and Wells Fargo Securities were the bookrunners.

Proceeds will be used to repay all or a portion of the company’s $45 million of 6.125% series class A preferred stock at $25.00 per share and $225 million of its 6.5% series 2007A preference stock at par per share. Any remaining proceeds will be used for general corporate purposes.

Georgia Power is an Atlanta-based electric utility company.

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