Scotiabank, American Tower, Air Lease, PSE&G, Autodesk, Eversource price; Kroger mixed

By Cristal Cody

Tupelo, Miss., Jan. 7 – The flurry of high-grade bond supply continued on Tuesday following more than $24 billion of volume on Monday.

Corporate and sovereign, supranational and agency issuers were marketing bonds over the session.

Bank of Nova Scotia priced $2.25 billion of senior bail-inable notes in two parts.

American Tower Corp. sold $1.5 billion of senior notes in two tranches.

Air Lease Corp. priced a $1.4 billion two-part offering of senior notes.

Public Service Electric and Gas Co. priced $600 million of secured medium-term notes in two tranches.

Autodesk, Inc. placed $500 million of 10-year senior notes.

Eversource Energy priced an upsized $350 million of 30-year senior notes.

In addition, Energy Transfer Operating LP offered three tranches of senior notes, while Western Midstream Operating, LP marketed five tranches of senior notes on Tuesday.

In SSA volume, Kommunalbanken AS launched a $750 million Rule 144A and Regulation S offering of two-year floating-rate notes notes at Libor plus 8 basis points on Tuesday, a source said.

The notes due Feb. 24, 2022 were initially talked to price in the Libor plus 9 bps area.

The European Investment Bank also launched a $4 billion offering of global notes due March 14, 2025 early Tuesday at mid-swaps plus 9 bps, according to a market source.

Initial price talk was in the mid-swaps plus 11 bps area.

In addition on Tuesday, Landwirtschaftliche Rentenbank offered $500 million of notes.

Coming up on Wednesday, Fannie Mae plans to price a new five-year Benchmark note offering.

Meanwhile, a two-tranche deal from the State of Israel is being eyed on the investment-grade desks, a source said.

Israel is holding a global roadshow and fixed income investor calls for 10- and 30-year notes through Tuesday.

About $115 billion to $125 billion of investment-grade supply is forecast for January, according to syndicate sources.

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

Kroger Co.’s $750 million of 3.95% senior notes due Jan. 15, 2050 (Baa1/BBB/) traded wrapped around issuance.

The Cincinnati-based grocery retailer priced the notes at 99.668 to yield 3.969% and a spread of Treasuries plus 170 bps.

Initial price talk was in the Treasuries plus 190 bps to 195 bps area.

Kroger’s existing bonds were mixed on Tuesday with the company’s short-dated notes flat to about 4 bps softer and the long-dated tranches about 4 bps tighter, a market source said.

Scotiabank prices $2.25 billion

Bank of Nova Scotia priced $2.25 billion of senior bail-inable notes (A2/A+/AA-) in two tranches on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $1 billion of 1.95% notes due Feb. 1, 2023 at Treasuries plus 43 bps, compared to guidance in the high 50 bps spread area. The notes priced at 99.875 to yield 1.992%.

Scotiabank priced $1.25 billion of 2.2% five-year notes at 99.809 to yield 2.24%, or a spread of Treasuries plus 62 bps. Initial price talk was in the high 70 bps area.

The bookrunners were Scotia Capital (USA) Inc., Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, and UBS Securities LLC.

The bank is based in Toronto.

American Tower prices $1.5 billion

American Tower priced $1.5 billion of senior notes (Baa3/BBB-/BBB) in two tranches on Tuesday, according to a market source and an FWP filing.

The company sold $750 million of 2.4% notes due March 15, 2025 at 99.905 to yield 2.419% and a spread of 80 bps over Treasuries.

Initial price guidance was in the Treasuries plus 100 bps area.

A $750 million tranche of 2.9% notes due Jan. 15, 2030 priced at a spread of Treasuries plus 112.5 bps, or 99.56 to yield 2.951%. Initial guidance was in the 130 bps spread area.

BofA Securities, Inc., Citigroup, J.P. Morgan Securities LLC, Morgan Stanley and Scotia Capital were the bookrunners.

American Tower is a telecommunications provider based in Boston.

Air Lease prices $1.4 billion

Air Lease priced $1.4 billion of senior notes (/BBB/BBB/Kroll: A-) in two tranches on Tuesday, according to a market source and an FWP filing.

The company sold $750 million of 2.3% notes due Feb. 1, 2025 at 98.963 to yield 2.52%, or a spread of 90 bps over Treasuries.

Initial price talk was in the Treasuries plus 110 bps to 115 bps area.

A $650 million tranche of 3% notes due Feb. 1, 2030 priced at 97.904 to yield 3.246%. The notes priced at a 142 bps plus Treasuries spread, compared to guidance in the 160 bps to 165 bps over Treasuries area.

Bookrunners were BofA Securities, Citigroup, J.P. Morgan, SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp., Loop Capital Markets LLC, Mizuho Securities USA Inc., MUFG, RBC Capital Markets LLC, SG Americas Securities, LLC, Wells Fargo Securities LLC, BNP Paribas Securities Corp., Fifth Third Securities Inc., ABN Amro Inc., Citizens Capital Markets, Inc., Goldman Sachs, ICBC Standard Bank Plc, KeyBanc Capital Markets Inc., NatWest Markets Securities Inc., Regions Securities LLC, Santander Investment Securities Inc., TD Securities (USA) LLC, Commonwealth Bank of Australia and Arab Banking Corporation BSC.

Air Lease is a Los Angeles-based aircraft leasing company.

PSE&G brings secured notes

Public Service Electric and Gas priced $600 million of secured medium-term notes (Aa3/AA/A+) in two tranches on Tuesday, according to FWP filings.

The company sold $300 million of 2.45% 10-year notes at 99.77 and $300 million of 3.15% notes due Jan. 1, 2050 at 99.846.

BNP Paribas, Citigroup, Mizuho Securities USA Inc., BNY Mellon Capital Markets LLC and TD Securities were the bookrunners.

PSE&G is a Newark, N.J.-based utility.

Autodesk sells notes

Autodesk sold $500 million of 2.85% 10-year senior notes at a spread of Treasuries plus 105 bps on Tuesday, according to a market source and an FWP filing.

Initial talk was in the Treasuries plus 130 bps area.

The notes (Baa2/BBB/) priced at 99.775 to yield 2.876%.

Bookrunners were BofA Securities, Citigroup, J.P. Morgan, MUFG, U.S. Bancorp Investments, Inc. and Wells Fargo.

Autodesk held global investor calls for the offering on Monday.

Autodesk is a design software and services company based in San Rafael, Calif.

Eversource Energy prints

Eversource Energy priced an upsized $350 million of 3.45% senior notes due Jan. 15, 2050 (Baa1/BBB+/BBB+) on Tuesday at a spread of Treasuries plus 115 bps, according to a market source and an FWP filing.

Initial price talk was in the Treasuries plus 130 bps to 135 bps area.

The deal was upsized from $300 million.

The issue was sold at 99.814 to yield 3.46%.

Bookrunners were Barclays, J.P. Morgan, PNC Capital Markets LLC, TD Securities and U.S. Bancorp.

The Boston-based company is engaged in the energy delivery business through utility subsidiaries.

Western Midstream offers five tranches

Western Midstream Operating (Ba1/BBB-/BBB-) plans to price five tranches of senior notes, according to a 424B3 filing on Tuesday.

Barclays, Citigroup, Deutsche Bank Securities Inc. and PNC Capital are the bookrunners.

The notes will have make-whole and par calls and feature a change-of-control put at 101%.

The issue also has covenants that limit the company’s ability to create liens on its principal properties, engage in sale and leaseback transactions or merge or consolidate with another entity.

The Woodlands, Texas-based company owns, develops and operates midstream energy assets.

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