Morning Commentary: Black Hills announces two-part notes; LyondellBasell, Sabra on tap

By Devika Patel

Knoxville, Tenn., Sept. 26 – The investment-grade primary market saw three new deals announced on Thursday.

Rapid City, S.D.-based Black Hills Corp., a utility company, reporting that it plans to sell fixed-rate notes in two tranches; LYB International Finance III LLC, a subsidiary of LyondellBasell Industries NV, a Houston-based chemical company with executive offices in London and incorporated in the Netherlands, announcing an offering of fixed-rate notes; and Irvine, Calif.-based REIT Sabra Health Care LP and Sabra Capital Corp. launching an offering of senior notes due 2029.

In addition, New York-based BGC Partners, Inc., a financial services company, priced $300 million of 3.75% five-year senior notes on Wednesday.

Black Hills eyes notes

Black Hills intends to price fixed-rate notes in two parts.

The notes feature a make-whole call and then a par call.

BofA Securities, Inc. and U.S. Bancorp Investments Inc. are the bookrunners.

The company will use the proceeds to redeem or retire all of its $200 million of 5.875% notes due July 15, 2020, repay some or all of its $400 million term loan and repay some or all of its commercial paper.

LyondellBasell on tap

LYB International Finance intends to sell guaranteed fixed-rate notes due 2049.

The notes will have a make-whole call and then are callable at par.

Mizuho Securities USA Inc. and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used to repay debt under the company’s 364-day term loan.

The notes are guaranteed by parent LyondellBasell Industries.

Sabra plans notes

Sabra Health Care and Sabra Capital plan to issue fixed-rate senior notes due 2029.

The notes have a make-whole call feature until three months prior to maturity and then are callable at par.

The bookrunners are Wells Fargo, Morgan Stanley & Co. LLC and SMBC Nikko Securities America Inc.

Proceeds will be used to redeem all $200 million of Sabra’s 5.375% senior notes due 2023 and repay debt under the company’s revolver.

BGC sells $300 million

BGC Partners sold $300 million of 3.75% five-year senior notes on Wednesday.

Goldman Sachs & Co. LLC, Cantor Fitzgerald & Co., Citigroup Global Markets Inc. and PNC Capital Markets LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

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