Goldman leads deal activity; Santander, Ventas Realty, Kimco, Edison price; DTE Energy better

By Cristal Cody

Tupelo, Miss., March 22 – Goldman Sachs Group Inc. led the day’s deal volume in the high-grade market on Wednesday with a $2.5 billion two-part notes offering.

In other pricing action over the session, Santander Holdings USA, Inc. brought an upsized $1 billion of five-year senior notes.

Ventas Realty LP came with an $800 million two-tranche senior notes offering.

Kimco Realty Corp. sold $400 million of 10-year senior notes.

Edison International Inc. priced $400 million of three-year senior notes.

Also, Duke Energy Ohio, Inc. placed a $100 million add-on to its 3.7% first mortgage bonds due June 15, 2046.

Energy bonds have traded mostly better in the secondary market.

DTE Energy Co.’s 3.8% senior notes due March 15, 2027 priced earlier in the month were active on Wednesday and improved more than 2 points since the bonds were last traded.

The Markit CDX North American Investment Grade index firmed about 1 basis point to close the day at a spread of 68 bps.

Goldman raises $2.5 billion

Goldman Sachs Group priced $2.5 billion of notes (A3/A/) in two parts on Wednesday, according to a market source.

Goldman Sachs sold $750 million of floating-rate notes due Dec. 27, 2020 at par to yield Libor plus 73 bps. The floaters had a final book size of $1 billion.

Goldman Sachs priced $1.75 billion of 2.6% fixed-rate notes due Dec. 27, 2020 at 99.931 to yield 2.62% and a spread of 110 bps over Treasuries. Final book size was $2 billion.

Goldman, Sachs & Co. was the bookrunner.

Goldman Sachs Group is a New York-based banking, securities and investment management company.

Santander sells $1 billion

Santander Holdings USA priced an upsized $1 billion of 3.7% five-year senior notes at a spread of Treasuries plus 180 bps in a Rule 144A and Regulation S private offering on Wednesday, according to a market source and company news release.

The deal was upsized from $900 million and the notes priced in line with guidance.

Barclays, J.P. Morgan Securities LLC, Santander Securities LLC and UBS Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

Boston-based Santander Holdings USA is the parent company of Sovereign Bank and a subsidiary of Spain’s Banco Santander, SA.

Ventas Realty prices

Ventas Realty sold $800 million of senior notes (Baa1/BBB+/BBB+) in two tranches on Wednesday, according to a market source and an FWP filing with the SEC.

The company placed $400 million of 3.1% notes due Jan. 15, 2023 at 99.28 to yield 3.235% and a spread of 130 bps over Treasuries.

Ventas priced $400 million of 3.85% 10-year notes at 99.196 to yield 3.948%. The notes were sold with a Treasuries plus 155 bps spread.

Both tranches priced on the tight side of guidance.

BofA Merrill Lynch, J.P. Morgan Securities, Barclays, Citigroup Global Markets Inc., UBS Securities and Wells Fargo Securities LLC were the bookrunners for the long five-year notes offering.

BofA Merrill Lynch, J.P. Morgan Securities, Credit Agricole Securities (USA) Inc., Jefferies LLC, MUFG, RBC Capital Markets, LLC and TD Securities (USA) LLC were the bookrunners on the 10-year note sale.

The notes are guaranteed by Ventas, Inc.

Proceeds will be used for working capital and general corporate purposes.

The real estate investment trust for housing and health care properties is based in Chicago.

Edison sells notes

Edison International priced $400 million of 2.15% three-year senior notes at a spread of Treasuries plus 62.5 bps on Wednesday, according to a market source.

The notes due April 1, 2020 (A3/BBB+/A-) priced on the tight side of talk.

Barclays and Wells Fargo Securities were the bookrunners.

The notes may be redeemed at the greater of par and a make-whole call, according to a 424B5 filed with the SEC.

Proceeds will be used to repay commercial paper borrowings and for general corporate purposes.

Edison International is a Rosemead, Calif., energy company.

Kimco Realty taps market

Kimco Realty sold $400 million of 3.8% 10-year senior notes (Baa1/BBB+/BBB+) on Wednesday at 99.637 to yield 3.844%, according to an FWP filing with the SEC.

The notes due April 1, 2027 priced with a spread of Treasuries plus 145 bps.

The bookrunners were Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities, Citigroup Global Markets, Morgan Stanley & Co. LLC and U.S. Bancorp Investments, Inc.

Proceeds will be used for general corporate purposes, specifically to pre-fund 2017 debt maturities, including $414 million of mortgage debt with a weighted average interest rate of 5.49%, and to partially reduce $420 million of borrowings under the company’s revolving credit facility maturing in March 2021.

Kimco is a New Hyde Park, N.Y., real estate investment trust that owns and operates neighborhood and community shopping centers.

Duke Energy reopens

Duke Energy Ohio priced a $100 million add-on to its 3.7% first mortgage bonds due June 15, 2046 (A2/A/) on Wednesday at a spread of 107 bps over Treasuries, according to an FWP filing with the SEC.

The bonds priced at 93.462 to yield 4.085%.

Citigroup Global Markets and Loop Capital Markets LLC were the bookrunners.

The company originally sold $250 million of the bonds at 99.301 to yield 3.739%, or 125 bps over Treasuries, in an offering on June 20, 2016. The total outstanding now is $350 million.

Proceeds from the deal will be used for capital expenditures for ongoing construction, capital maintenance and general corporate purposes.

The Charlotte, N.C.-based company generates, transmits, distributes and sells electricity and is a wholly owned subsidiary of Duke Energy Corp.

DTE Energy better

DTE Energy’s 3.8% senior notes due March 15, 2027 headed out unchanged from earlier secondary trading at 101.43 but better since the notes were last traded on Thursday at 99.18, a market source said.

The company sold $500 million of the notes (Baa1/BBB/BBB+) on March 8 at 99.736 to yield 3.832%, or a spread of 128 bps over Treasuries.

DTE is a Detroit-based diversified energy company.

© 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.