Deutsche, Duke, Las Vegas Sands price; inflows more than double over week; Occidental Petroleum soft

By Cristal Cody

Tupelo, Miss., Nov. 21 – Investment-grade supply on Thursday included issuers in the bank, energy and hospitality spaces.

Deutsche Bank AG, New York Branch priced $1.5 billion of six-year fixed-to-floating-rate notes.

Duke Energy Florida, LLC sold $900 million of bonds in two tranches, while Las Vegas Sands Corp. priced $500 million of senior notes due 2025.

The session also saw a $7 billion three-part offering of split-rated notes (Ba1/BBB-/BB+) from Centene Corp. in an offering that was completed off the high-yield desks.

Meanwhile, Heineken NV (Baa1/BBB+) held fixed income investor calls on Thursday for a possible high-grade bond offering, according to a market source. J.P. Morgan Securities LLC is the arranger.

Week to date, new issue supply totals more than $18 billion. Market sources expected about $25 billion of volume for the week.

In other activity, corporate investment-grade funds inflows soared to $5.19 billion for the past week ended Wednesday from $2.27 billion a week ago, according to Lipper US Fund Flows.

The Markit CDX North American Investment Grade 33 index headed out mostly unchanged at a spread of 52.9 basis points.

In the secondary market, energy bonds were mixed but traded mostly flat to about 5 bps weaker on Thursday, a source said.

Occidental Petroleum Corp.’s senior notes (Baa3/A) priced as part of a $13 billion 10-tranche offering in August widened on Thursday but remain better than issuance.

The company’s 2.9% notes due Aug. 15, 2024 eased about 5.5 bps to 121 bps bid during the session, according to a market source.

The notes priced in a $3 billion tranche on Aug. 1 at a spread of 140 bps over Treasuries.

The Los Angeles oil and gas, chemical and midstream company’s 3.5% notes due Aug. 15, 2029 softened about 1 bp to 169 bps bid in secondary trading on Thursday.

The $1.5 billion tranche priced at a Treasuries plus 185 bps spread.

In other secondary trading, hospitality bonds were mostly unchanged on the day, a market source said.

Deutsche Bank sells $1.5 billion

Deutsche Bank, New York Branch (Baa3/BBB) priced $1.5 billion of 3.961% fixed-to-floating-rate senior notes due Nov. 26, 2025 on Thursday at par to yield a spread of 235 bps over Treasuries, according to a market source.

Initial price talk was in the Treasuries plus mid-200 bps area.

The notes will reset Nov. 26, 2024 to a floating rate of SOFR plus 258.1 bps.

Deutsche Bank Securities Inc. was the bookrunner.

The banking and financial services company is based in Frankfurt.

Duke Energy Florida prices

In the primary market, Duke Energy Florida sold $900 million of bonds in two tranches on Thursday, according to FWP filings with the Securities and Exchange Commission.

A $200 million tranche of two-year floating-rate senior notes (A3/A-) priced at par to yield Libor plus 25 bps.

The company sold $700 million of 2.5% 10-year green first mortgage bonds (A1/A) at 99.947 to yield 2.506%, or a spread of 73 bps over Treasuries.

PNC Capital Markets LLC, CastleOak Securities LP, C.L. King & Associates Inc., Drexel Hamilton LLC, Great Pacific Securities and Samuel A. Ramirez & Co. Inc. were the bookrunners for the floaters.

BNP Paribas Securities Corp., MUFG, RBC Capital Markets LLC, SMBC Nikko Securities America Inc., TD Securities (USA) LLC and U.S. Bancorp Investments Inc. were the bookrunners for the first mortgage bonds.

The public utility is based in St. Petersburg, Fla., and is a subsidiary of Duke Energy Corp

Las Vegas Sands sells notes

Las Vegas Sands priced $500 million of 2.9% senior notes due June 25, 2025 (Baa3/BBB-/BBB-) in a registered offering on Thursday at a spread of 130 bps over Treasuries, according to a market source and a news release.

Initial price talk was in the Treasuries plus 145 bps area.

The bookrunners were Barclays, BofA Securities, Inc., Goldman Sachs & Co. LLC, BNP Paribas, Fifth Third Securities Inc., Scotia Capital (USA) Inc. and SMBC Nikko.

Las Vegas Sands is a Las Vegas-based developer and operator of integrated resorts.

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