Flex sells add-on; Paccar issues $300 million; Kommuninvest to price

By Devika Patel

Knoxville, Tenn., Oct. 31 – Primary activity in the investment-grade bond market was relatively slow late in the week, with two new deals pricing and one new deal announced on Thursday.

Singapore based Flex Ltd., a real estate investment that has offices in the United States, priced a $200 million add-on to its 4.875% senior notes (Baa3/BBB-) due June 15, 2029.

Bellevue, Wash.-based financing arm of Paccar Inc. Paccar Financial Corp. sold $300 million of 1.9% medium-term notes due Feb. 7, 2023.

Orebro-based Kommuninvest I Sverige AB, a company that offers funding to municipalities of Sweden, plans a $1.25 billion sale of fixed-rate benchmark notes due 2022.

Flex prices

Flex priced a $200 million add-on to its 4.875% senior notes due June 15, 2029.

The new notes priced at 107.289 to yield 3.936%, with a spread of Treasuries plus 225 basis points.

The company issued $450 million of the notes at 99.607 to yield 4.925% with a spread of Treasuries plus 270 bps in a sale that priced on May 30 and settled on June 6.

The bookrunners were J.P. Morgan Securities LLC, Citigroup Global Markets Inc., U.S. Bancorp Investments Inc. and SMBC Nikko Securities America, Inc.

Proceeds will be used for general corporate purposes, including repaying, redeeming or repurchasing debt.

Paccar sells $300 million

Paccar Financial priced $300 million of 1.9% medium-term notes due Feb. 7, 2023 at a spread of 38 bps over Treasuries.

The notes priced at 99.995 to yield 1.902%.

BNP Paribas Securities Corp., BofA Securities, Inc., MUFG, ING Financial Markets LLC, Scotia Capital (USA) Inc., Mizuho Securities USA Inc., Rabo Securities USA, Inc. and Westpac Capital Markets LLC were the bookrunners.

Kommuninvest on tap

Kommuninvest I Sverige plans to issue $1.25 billion of fixed-rate benchmark notes due 2022 in a Rule 144A and Regulation S offering.

The notes will be priced at 99.857 and guaranteed by the County Councils and Municipalities of Sweden.

Toronto-Dominion Bank, HSBC Bank plc, Morgan Stanley & Co. International plc and Scotiabank Europe plc are the bookrunners.

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