Sunoco sells $2.25 billion; Goodman, Nasdaq tap primary; Kroger steady; Amazon.com firms

By Cristal Cody

Tupelo, Miss., Sept. 19 – Several issuers tapped the high-grade primary market on Tuesday.

Sunoco Logistics Partners Operations LP priced $2.25 billion of guaranteed senior notes in two tranches.

Australian property company Goodman Group (Baa1/BBB+/) affiliate Goodman US Finance Three, LLC sold $850 million of notes in two parts.

AEP Texas Inc. raised $700 million in a two-tranche note sale.

Nasdaq, Inc. priced $500 million of floating-rate notes.

The Markit CDX North American Investment Grade 28 index tightened about 1 basis point to close on Tuesday at a spread of 55 bps.

In the secondary market, Kroger Co.’s senior notes (Baa1/BBB/BBB) were mostly unchanged. Fitch Ratings said on Tuesday that it revised the grocer’s outlook to negative from stable.

The retail grocery industry has been impacted since Amazon.com, Inc. closed in August its $13.7 billion cash acquisition of Whole Foods Markets Inc.

Amazon.com’s 3.15% notes due Aug. 22, 2027 priced in August firmed about 3 bps on Tuesday and are trading about 10 bps better than issuance.

Sunoco sells $2.25 billion

Sunoco Logistics Partners Operations sold $2.25 billion of guaranteed senior notes (Baa3/BBB-BBB-) in two tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The company sold $750 million of 4% 10-year notes at 99.216 to yield 4.096% and a spread of Treasuries plus 185 bps.

Sunoco priced $1.5 billion of 5.4% 30-year notes at 99.806 to yield 5.413% and a Treasuries plus 260 bps spread.

Bookrunners were Deutsche Bank Securities Inc., PNC Capital Markets LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc. and SunTrust Robinson Humphrey, Inc.

The notes are guaranteed by Energy Transfer Partners, LP.

Proceeds will be used to redeem all $500 million of Energy Transfer Partners’ 6.5% senior notes due 2021, to repay outstanding borrowings under the company’s $2.5 billion revolving credit facility and for general partnership purposes.

Philadelphia-based Sunoco transports and stores crude oil and natural gas.

Goodman prints

Goodman US Finance Three sold $850 million of dollar-denominated notes in two parts on Tuesday, a market source said.

The company priced $525 million of 3.7% notes due March 15, 2028 at a spread of Treasuries plus 150 bps.

In the second tranche, Goodman sold $325 million of 4.5% notes due Oct. 15, 2037 at a Treasuries plus 170 bps spread.

HSBC Securities, J.P. Morgan Securities LLC and RBC Capital Markets were the bookrunners.

Goodman Group held a roadshow earlier in the month for the offering.

The commercial and industrial property owner, developer and management company is based in Sydney, Australia.

AEP Texas sells bonds

AEP Texas (Baa1/A-/BBB+) priced $700 million of notes in two tranches in a Rule 144A and Regulation S offering on Tuesday, according to market sources.

The company sold $400 million of 2.4% five-year notes at a spread of Treasuries plus 60 bps.

The $300 million tranche of 3.8% 30-year bonds priced with a Treasuries plus 105 bps spread.

Both tranches priced on the tight side of guidance.

Credit Suisse Securities, J.P. Morgan Securities and RBC Capital Markets were the bookrunners.

AEP Texas is a Corpus Christi, Texas-based electric company.

Nasdaq prices floaters

Nasdaq priced $500 million of senior floating-rate notes due March 22, 2019 (Baa2/BBB/) on Tuesday at par to yield Libor plus 39 bps, according to an FWP filing with the SEC.

BofA Merrill Lynch, J.P. Morgan Securities and Wells Fargo Securities were the bookrunners.

Nasdaq is a New York City-based financial services company that owns and operates the Nasdaq stock market.

Kroger flat

Kroger’s 3.7% notes due 2027 were mostly unchanged in secondary trading on Tuesday at 152 bps bid, a market source said.

The company sold $600 million of the notes (Baa1/BBB/BBB) on July 17 at a Treasuries plus 140 bps spread.

Kroger is a Cincinnati-based grocery retailer.

Amazon.com firms

Amazon.com’s 3.15% notes due Aug. 22, 2027 tightened about 3 bps to 79 bps bid on Tuesday, according to a market source.

Amazon.com sold $3.5 billion of the notes (Baa1/AA-/) on Aug. 15 at a spread of Treasuries plus 90 bps.

The online commerce company is based in Seattle.

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