Enterprise, American Tower, NextEra Energy issue bonds; bank paper mixed in secondary

By Aleesia Forni and Cristal Cody

Virginia Beach, May 4 – Issuers raced to the primary market on Monday, bringing $5.3 billion of new investment-grade paper to market during the session.

In the day’s largest new issue, Enterprise Products Operating LLC attracted around $8.5 billion of orders for its new $2.5 billion three-part senior notes offering.

American Tower Corp. priced a $1.5 billion sale of senior notes in two tranches, both at the tight end of price talk.

Also on Monday, NextEra Energy Capital Holdings Inc. brought to market a $600 million remarketing of senior debentures due June 1, 2017.

Ryder System Inc. sold $300 million of senior notes 10 basis points tight of initial talk, while Delmarva Power & Light Co. priced $200 million first mortgage bonds in line with guidance.

In other primary happenings, Principal Financial Group, Inc. sold a $400 million 10-year senior note, along with a $400 million junior subordinated note due 2055.

A busy week is predicted for the primary market, with sources calling for around $35 billion to $40 billion of issuance for the first full week of May.

Bank and financial paper was mixed in secondary trading over the session.

Bank of America Corp.’s 4% notes due 2025 traded 5 bps better from Friday’s session.

Goldman Sachs Group Inc.’s senior notes (Baa1/A- /A) were flat over the day.

JPMorgan Chase & Co.’s 3.125% notes due 2025 traded 2 bps softer.

Morgan Stanley’s 2.65% notes due 2020 headed out flat to 1 bp weaker.

The Markit CDX North American Investment Grade series 23 index was mostly unchanged at a spread of 63 bps.

Enterprise sells $2.5 billion

Enterprise Products was in Monday’s market with a $2.5 billion three-part offering of senior notes (Baa1/BBB+/), according to a market source and an FWP filed with the Securities and Exchange Commission.

The sale included $750 million of 1.65% notes due 2018 priced at 99.881 to yield 1.691%, or Treasuries plus 75 bps.

An $875 million 3.7% note due 2026 priced at 99.635 to yield 3.742%, or Treasuries plus 160 bps.

Finally, $875 million of 4.9% notes due 2046 sold at 99.635 to yield 4.932% with a spread of 205 bps over Treasuries.

All tranches sold at the tight end of price guidance.

The notes will be guaranteed by Enterprise Products Partners LP.

Wells Fargo Securities, LLC, Barclays, Credit Suisse Securities (USA) LLC, MUFG, Mizuho Securities USA Inc., RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments, Inc. are the bookrunners.

Proceeds will be used to repay commercial paper, to repay debt and for general company purposes.

The midstream energy services provider is based in Houston.

American Tower new issue

American Tower sold a $1.5 billion issue of senior notes (Baa3/BBB-/BBB) in five- and 10-year tranches on Monday, according to an informed source and an FWP filed with the SEC.

The sale included $750 million of 2.8% notes due 2020 at 99.745 to yield 2.854%, or 135 bps over Treasuries.

Pricing was at the tight end of guidance set in the 140 bps area.

A second tranche was $750 million of 4% notes due 2025 priced at 99.228 to yield 4.094% with a spread of 195 bps over Treasuries.

Barclays, Mizuho Securities, RBC Capital Markets, Santander and TD Securities were the bookrunners.

Proceeds will be used to repay debt under an existing credit facility and for general corporate purposes.

The owner and operator of communications towers is based in Boston.

NextEra remarketing

NextEra Energy Capital Holdings sold a $600 million remarketing of its 1.586% senior debentures due June 1, 2017 at 80 bps over Treasuries on Monday, according to an FWP filed with the SEC.

Pricing was at 100.365 to yield 1.407%.

The notes (Baa1/BBB+/A-) sold tighter than guidance.

BofA Merrill Lynch was the bookrunner.

Proceeds will be added to the company’s general funds, which will be used to repay commercial paper and for other general corporate purposes.

The notes will be guaranteed by NextEra Energy Inc.

Based in Juno Beach, Fla., NextEra is a power generation and transmission company.

Principal Financial offering

Principal Financial Group sold $400 million of 3.4% 10-year senior notes (Baa1/BBB+) on Monday at Treasuries plus 130 bps, according to an informed source.

The issue sold at 99.688 to yield 3.437%.

Pricing was in line with guidance.

Bookrunners were BofA Merrill Lynch, Citigroup Global Markets Inc., U.S. Bancorp Investments, Credit Suisse Securities, RBC Capital Markets and UBS Securities LLC.

Proceeds will be used to redeem the company’s series A perpetual preferred stock and for general corporate purposes.

The notes are guaranteed by Principal Financial Services, Inc.

The Des Moines-based insurance company also priced $400 million of 4.7% $1,000-par fixed-to-floating-rate junior subordinated notes due May 15, 2055.

BofA Merrill Lynch, HSBC, Wells Fargo Securities, Barclays, Deutsche Bank Securities Inc. and Goldman Sachs & Co. are the joint bookrunners.

The interest rate will be fixed and payable semiannually through May 15, 2020. The notes will then pay interest on a floating rate basis – Libor plus 304.4 bps – and will be payable quarterly.

The company will have the option to defer any interest payment for one or more consecutive periods, but not exceeding five years.

The notes become redeemable on or after May 15, 2020. However, the company can redeem the debt prior to that date within 90 days of a rating agency or tax event.

Ryder prices tight

Ryder System priced a $300 million issue of 2.5% five-year senior notes on Monday at 105 bps over Treasuries, according to a market source and a 424B3 filed with the SEC.

The notes (Baa1/A-/) were guided in the 110 bps area over Treasuries.

Pricing was at 99.725 to yield 2.559%.

Lloyds Securities, MUFG, Morgan Stanley & Co. LLC, U.S. Bancorp Investments and Wells Fargo Securities are the joint bookrunners.

The transportation and logistics company is based in Miami.

Delmarva mortgage bonds

Delmarva Power & Light sold $200 million of 4.15% first mortgage bonds (A2/A/A) due May 15, 2045 on Monday at Treasuries plus 130 bps, according to a market source and a 424B2 filed with the SEC.

Pricing was at 99.914 to yield 4.155%.

The notes sold in line with price talk.

BofA Merrill Lynch, J.P. Morgan Securities LLC and Scotia Capital (USA) Inc. were the joint bookrunners.

Proceeds will be used to repay debt, to repay outstanding commercial paper and for general corporate purposes.

Delmarva is an electric and natural gas utility based in Wilmington, Del.

Bank of America stronger

Bank of America’s 4% notes due 2025 headed out at 204 bps bid on Monday, 5 bps tighter than where the paper traded on Friday, a market source said.

Bank of America sold $2.5 billion of the notes (Baa2/A-/A) on Jan. 16 at Treasuries plus 225 bps.

The financial services company is based in Charlotte, N.C.

Goldman steady

Goldman Sachs’ 2.6% notes due 2020 were unchanged from Friday at 109 bps bid, a market source said.

Goldman brought a $700 million add-on to the issue on March 25 at Treasuries plus 112 bps. The original $1 billion offering of notes priced at 135 bps over Treasuries on Jan. 20.

Goldman’s 3.5% notes due 2025 were unchanged at 147 bps bid.

The company priced an $800 million reopening of the notes on March 25 at Treasuries plus 145 bps.

Goldman originally sold $1.7 billion of the notes at 170 bps over Treasuries on Jan. 20.

The financial services company is based in New York City.

JPMorgan eases

JPMorgan Chase’s 3.125% notes due 2025 eased 2 bps to 127 bps bid, according to a market source.

JPMorgan sold $2.5 billion of the notes (A3/A/A+) on Jan. 16 at Treasuries plus 145 bps.

The financial services company is based in New York City.

Morgan Stanley widens

Morgan Stanley’s 2.65% notes due 2020 traded flat to 1 bp softer at 100 bps bid, according to a market source.

Morgan Stanley sold $2.5 billion of the notes (Baa2/A-/A) on Jan. 22 at Treasuries plus 130 bps.

The financial services company is based in New York City.

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