British American Tobacco sells $17.25 billion; Noble Energy, Oklahoma Gas, Eversource price

By Cristal Cody

Tupelo, Miss., Aug. 8 – BAT Capital Corp. priced $17.25 billion of dollar-denominated senior notes in eight tranches on Tuesday following parent company British American Tobacco plc’s roadshow on Monday.

The deal had a final book size of $34 billion.

BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. were the bookrunners.

Other issuers in the primary market on Tuesday included Noble Energy Inc., which priced $1.1 billion of notes in two parts.

Also, Vereit Operating Partnership LP upsized an offering of10-year guaranteed senior notes to $600 million.

In other energy deals during the session, Oklahoma Gas & Electric Co. priced $300 million of 30-year senior notes.

Connecticut Light and Power Co., doing business as Eversource Energy, reopened its 4.3% first and refunding mortgage due April 15, 2044 in a $225 million deal.

On Monday, high-grade companies priced nearly $15 billion of bonds.

Market sources expect issuance to be strong over the week with about $35 billion of total volume forecast.

The Markit CDX North American Investment Grade index eased about 1 basis point to end at a spread of 59 bps.

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