Western Midstream, Nomura, Avolon, Caterpillar, Westpac in primary; high-grade inflows soar

By Cristal Cody

Tupelo, Miss., Jan. 9 – Investment-grade supply remained strong on Thursday with at least 10 corporate and sovereign, supranational and agency issuers offering bonds over the session.

A number of registered and Rule 144A and Regulation S transactions were expected.

Western Midstream Operating, LP, Nomura Holdings Inc., Avolon Holdings Ltd. subsidiary Avolon Holdings Funding Ltd., Caterpillar Financial Services Corp., Westpac Banking Corp., National Bank of Canada, Athene Global Funding, MassMutual Global Funding II and the Inter-American Development Bank offered investment-grade issues.

In other action on Thursday, Ohio National Financial Services, Inc. continued a two-day session of fixed income investor calls for a dollar-denominated Rule 144A and Regulation S senior offering. BofA Securities, Inc., Citigroup Global Markets Inc. and BMO Capital Markets Corp. are the bookrunners.

More than $50 billion of high-grade bonds have priced week to date.

The Markit CDX North American Investment Grade 33 index tightened on Thursday by more than 1 basis point to a spread of 43.9 bps.

Meanwhile, corporate investment-grade fund inflows soared to $8.19 billion for the past week ended Wednesday, Lipper US Fund Flows reported.

In the previous week, corporate high-grade funds had outflows of $573 million following inflows of $5.16 billion in the week ended Dec. 25.

Market appetite has been risk-on this week despite global tensions, while economic data is giving some confidence, sources report.

The Labor Department announced on Thursday that initial jobless claims for the previous week were 214,000, below market analyst forecasts of 220,000 unemployment claims.

Avolon prices $1.75 billion

Avolon Holdings Funding (Baa3/BBB-/BBB-) priced a $1.75 billion two-part offering of senior notes in a Rule 144A and Regulation S offering on Thursday, according to a market source and news release.

The company sold $1.1 billion of 2.875% notes due Feb. 15, 2025 and $650 million of 3.25% notes due Feb. 15, 2027.

Initial talk on the 2025 notes was in the 150 bps over Treasuries spread area, while the 2027 notes were initially talked at a 180 bps spread area.

Additional pricing details were not immediately available.

Barclays, J.P. Morgan Securities LLC, Natixis, SG Americas Securities, LLC and Wells Fargo Securities LLC were the bookrunners.

The notes are fully and unconditionally guaranteed by the parent company and certain subsidiaries.

The aircraft leasing company is based in Dublin.

Caterpillar prints $1.5 billion

Caterpillar Financial Services priced $1.5 billion of medium-term notes (A3/A/A) in two tranches on Thursday, according to a market source and FWP filings with the Securities and Exchange Commission.

Caterpillar sold $750 million of floating-rate notes due Nov. 12, 2021 at par to yield Libor plus 20 bps, tighter than initial talk in the Libor plus 30 bps area.

A $750 million tranche of 1.95% fixed-rate notes due Nov. 18, 2022 priced at 99.954 to yield 1.967%. The notes were initially talked to print in the Treasuries plus 50 bps spread area.

Barclays, J.P. Morgan and SG Americas Securities were the bookrunners.

Nashville, Tenn.-based Caterpillar Financial Services is a financing arm of Caterpillar Inc.

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