BB&T, Oneok, Dominion Energy, RELX tap primary market; KommuneKredit offers notes

By Cristal Cody

Tupelo, Miss., March 11 – High-grade issuers priced nearly $5 billion of bonds on Monday as issuance slows this week following heavy supply last week.

BB&T Corp. sold $2 billion of senior and subordinated in two tranches.

Oneok Inc. brought $1.25 billion of guaranteed senior notes in new and reopened tranches to the primary market.

Dominion Energy, Inc. sold $600 million of reopened and new issue senior notes.

RELX Capital Inc. priced $950 million of 10-year guaranteed notes.

In other primary action, Canadian Pacific Railway Co. sold C$400 million of 3.15% 10-year guaranteed senior notes (Baa1/BBB+/DBRS: BBB) on Monday in its first Canadian dollar-denominated debt offering since 2011.

The reverse Yankee market also remains active with PepsiCo, Inc. launching euro-denominated senior notes on Monday.

Looking ahead to Tuesday, KommuneKredit intends to price a dollar-denominated offering of three-year fixed-rate notes.

Meanwhile, a deal is being eyed from Southern California Edison Co. (A3/A-/A) after the company held fixed income investor calls on Friday, a source said.

The high-grade primary market is expected to see about $25 billion of deal volume this week following about $40 billion of supply last week, according to syndicate sources.

The Markit CDX North American Investment Grade 31 index unwound some of last week’s weakness and improved about 4 basis points on Monday to close at a spread of 61 bps.

BB&T prices $2 billion

BB&T priced $2 billion of medium-term notes in two tranches on Monday, according to a market source and FWP filings with the Securities and Exchange Commission.

The company sold $1.35 billion of 3.05% medium-term senior notes due June 20, 2022 (A2/A-/A+) at 99.997 with a spread of 60 bps over Treasuries. The notes priced on top of guidance but better than initial talk.

A $650 million tranche of 3.875% 10-year medium-term subordinated notes (A2/BBB+/A) priced at 99.901 and at a 125 bps over Treasuries spread. Price guidance was in the Treasuries plus 125 bps area, plus or minus 5 bps.

BB&T Capital Markets, BofA Merrill Lynch, Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey, Inc. were the bookrunners.

BB&T is a bank and financial services company based in Winston-Salem, N.C.

Oneok prices $1.25 billion

Oneok priced $1.25 billion of guaranteed senior notes (Baa3/BBB/) in new and reopened tranches on Monday, according to a market source.

The company sold $700 million of 10-year notes at a spread of 175 bps over Treasuries, on the tight side of guidance.

A $550 million add-on to Oneok’s 5.2% notes due July 15, 2048 priced with a Treasuries plus 225 bps spread. Price guidance was in the Treasuries plus 225 bps area, plus or minus 5 bps.

The company originally sold $450 million of the 30-year notes on June 19, 2018 at 99.546 to yield 5.23%, or a Treasuries plus 220 bps spread. The total outstanding is now $1 billion.

Barclays, Goldman Sachs & Co. LLC, MUFG and TD Securities (USA) LLC were the lead managers.

The bonds are guaranteed by Oneok Partners LP and Oneok Partners Intermediate LP.

Oneok is a midstream service provider and natural gas company based in Tulsa, Okla.

RELX sells $950 million

RELX Capital sold $950 million of 4% 10-year guaranteed notes (Baa1/BBB+/BBB+) on the tight side of guidance Monday at a spread of 150 bps over Treasuries, according to a market source and an FWP filing with the SEC.

The notes priced at 98.839 to yield 4.143%.

J.P. Morgan Securities LLC, Santander Investment Securities Inc., SG Americas Securities, LLC, TD Securities and Wells Fargo Securities LLC were the bookrunners.

The notes will be guaranteed by RELX PLC.

RELX Capital is a Wilmington, Del.-based subsidiary of London-based information and analytics company RELX Group plc.

Dominion Energy sells two tranches

Dominion Energy sold $600 million of reopened and new issue senior notes (Baa2/BBB/BBB+) on Monday, according to an FWP filing with the SEC.

The company priced a $200 million add-on to its 4.25% notes due June 1, 2028 at 102.847 to yield 3.871%, or a spread of 123 bps over Treasuries.

Dominion Energy first sold $300 million of the notes on May 30, 2018 at par to yield a spread of Treasuries plus 140 bps. The total outstanding is now $500 million.

Dominion Energy also sold $400 million of new 4.6% 30-year senior notes at 99.967 to yield 4.602%. The notes priced with a spread of 158 bps over Treasuries.

Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and TD Securities were the bookrunners.

The producer and transporter of energy is based in Richmond, Va.

KommuneKredit eyes deal

KommuneKredit (Aaa/AA+/) plans to price a dollar-denominated offering of fixed-rate notes due 2022 on Tuesday, according to a company announcement.

Bank of Montreal, London Branch, HSBC Bank plc, RBC Europe Ltd. and Toronto-Domino Bank are the lead managers.

The notes are being offered under KommuneKredit’s €30 billion euro medium-term note program.

The deal is expected to close March 21.

KommuneKredit also is holding tender offers for two tranches of outstanding notes.

The government funding and services company is based in Copenhagen, Denmark.

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