Morning Commentary: Markel sells $800 million dual trancher; Northwestern Mutual prices

By Rebecca Melvin

New York, Sept. 13 – The investment-grade bond market went very quiet early Friday with two previously announced deals heard to have priced and only a single company announcing plans to price a preferred issue.

Markel Corp., a Glen Allen, Va.-based financial holding company, priced $800 million senior notes in two parts on Thursday. The parts included a $300 million tranche of 3.35% 10-year notes at a Treasuries plus 158 bps and a $500 million tranche of 4.15% 31-year notes that sold at a Treasuries plus 190 bps spread.

In addition, Northwestern Mutual Life Insurance Co. priced $600 million of 3.625% surplus notes due 2059 on Thursday.

The Milwaukee-based financial services and mutual insurance company also made an exchange offer for noteholders who opt to exchange their 6.063% surplus notes due 2040 for the new notes. New notes issued in the exchange will be fungible with the original $600 million issue.

Looking ahead, Rexford Industrial Realty, Inc., a Los Angeles-based real estate investment trust, said it plans to price an offering of $25-par series C cumulative redeemable preferred stock.

The preferreds are redeemable after five years at par. Prior to that, they are redeemable within 120 days after a change of control at par.

Rexford said the proceeds will be used to fund future acquisitions by its operating partnership, and to fund its development or redevelopment activities and for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.