NextEra, Kaiser, European Bank for Reconstruction price; Apple firms; Comcast mostly better

By Cristal Cody

Tupelo, Miss., April 25 – High-grade issuers brought about $4.75 billion of bonds to the primary market on Tuesday in the corporate and SSA space following $2.6 billion of supply on Monday.

NextEra Energy Capital Holdings Inc. priced $1.25 billion of 10-year guaranteed debentures in line with guidance.

Kaiser Permanente placed $2,075,000,000 of bonds in two tranches.

In the SSA primary market, the European Bank for Reconstruction and Development sold $1.5 billion of three-year notes.

Several more deals are expected with nearly 10 Yankee and SSA transactions in the works, a market source said.

About $15 billion to $20 billion of total supply is expected for the week.

The Markit CDX North American Investment Grade index firmed about 1 basis point over the day to close at a spread of 63 bps.

Looking at secondary action, Apple Inc.’s senior notes (Aa1/AA+/) tightened over the session.

Comcast Corp.’s senior notes (A3/A-/A-) traded flat to better.

NextEra prices $1.25 billion

NextEra Energy Capital Holdings priced $1.25 billion of 3.55% 10-year guaranteed debentures (Baa1/BBB+/A-) in line with guidance at a spread of 125 bps over Treasuries on Tuesday, according to a market source.

The bookrunners were BofA Merrill Lynch, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC and SMBC Nikko Securities America, Inc.

The debentures are guaranteed by NextEra Energy Capital Holdings’ parent company, NextEra Energy, Inc.

The company will add the proceeds from the sale to its general funds, which may then be used to repay at maturity $600 million of its series E debentures due June 1, 2017 and $650 million of its series F debentures due Sept. 1, 2017, according to a 424B5 filing with the Securities and Exchange Commission.

NextEra Energy is an energy company based in Juno Beach, Fla.

Kaiser sells $2 billion

Kaiser Permanente (/AA-/A+) priced $2,075,000,000 of 3(a)4 tax-exempt series 2017 bonds (/AA-/A+) in two parts on Tuesday, according to a market source.

The issuer sold $575 million of 3.15% 10-year notes at a spread of 85 bps over Treasuries.

Kaiser priced $1.5 billion of 4.15% 30-year notes at a Treasuries plus 120 bps spread.

Both tranches priced on the tight side of guidance.

A planned offering of notes due May 1, 2022 was dropped from Tuesday’s sale. At least one of the tranches was expected to be offered as a green bond.

Goldman Sachs & Co., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were active leads for the deal.

Kaiser Permanente is a managed care consortium based in Oakland, Calif.

EBRD brings $1.5 billion

The European Bank for Reconstruction and Development (Aaa/AAA/AAA) priced a $1.5 billion offering on Tuesday of 1.625% three-year medium-term global notes at a spread of 23.5 bps over Treasuries, according to a market source.

The notes are due May 5, 2020.

BofA Merrill Lynch, BNP Paribas Securities, J.P. Morgan Securities and TD Securities (USA) LLC were the lead managers.

The financial institution is based in London.

Apple tightens

Apple’s 3.35% notes due Feb. 9, 2027 tightened about 6 bps to 78 bps bid in secondary trading on Tuesday, a market source said.

Apple priced $2.25 billion of the 10-year notes on Feb. 2 at a spread of Treasuries plus 88 bps.

The company’s 4.25% notes due Feb. 9, 2047 firmed about 1 bp to 110 bps bid.

Apple placed $1 billion of the 30-year notes in the Feb. 2 offering at a 115 bps spread over Treasuries.

The computer, mobile communication and media devices company is based in Cupertino, Calif.

Comcast mixed

Comcast’s 3% notes due Feb. 1, 2024 traded flat on the day at 75 bps area, a market source said.

The company sold $1.25 billion of the notes on Jan. 5 at a spread of 85 bps over Treasuries.

Comcast’s 3.3% notes due Feb. 1, 2027 tightened 3 bps on Tuesday to trade at 96 bps bid.

Comcast priced $1.25 billion of the 10-year notes in the January offering at Treasuries plus 95 bps.

Comcast is a media and technology company based in Philadelphia.

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