General Mills prices $6.05 billion; Charter, Marriott among issuers; Aegon holds roadshow

By Cristal Cody

Tupelo, Miss., April 3 – General Mills, Inc. led pricing action in the high-grade market on Tuesday with a $6.05 billion eight-tranche offering of senior notes.

The deal was upsized from an initial six-tranche expected offering.

In other issuance, Charter Communications, Inc. subsidiaries priced $2.5 billion of senior secured notes in two parts.

Also, Welltower Inc., Marriott International Inc., Union Electric Co. and Freddie Mac priced notes.

Other investment-grade issuers were marketing bonds during the session.

Aegon NV held a roadshow for 30-year fixed-to-floating rate subordinated notes.

Banco Santander, SA kicked off the company’s roadshow in the U.S. and Canadian markets for a benchmark-sized dollar-denominated note offering on Tuesday, according to a market source. BofA Merrill Lynch, Citigroup Global Markets, J.P. Morgan Securities and Santander Investment Securities Inc. are the arrangers.

Also, Salesforce.com, Inc. held the first of a two-day round of fixed-income investor calls on Tuesday for two tranches of senior notes, a source said. BofA Merrill Lynch, J.P. Morgan Securities, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities are the arrangers.

In other activity during the session, Dollar Tree Inc. held fixed-income investor calls, a source said. BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are the arrangers.

About $20 billion to $25 billion of high-grade bond issuance is expected by syndicate sources for the week.

On Monday, Securian Financial Group, Inc. was the sole investment-grade issuer with an upsized $500 million offering of 30-year senior notes.

The Markit CDX North American Investment Grade 30 index firmed more than 1 basis point to close at a spread of 66 bps.

General Mills sells notes

General Mills priced $6.05 billion of senior notes (Baa2/BBB/) in eight tranches, according to a market source.

The company sold $850 million of three-year floating-rate notes at Libor plus 54 bps.

General Mills priced $600 million of 3.2% three-year fixed-rate notes with a spread of 80 bps over Treasuries.

The company placed $400 million of long five-year floating-rate notes at Libor plus 101 bps.

In the long five-year fixed-rate tranche, General Mills sold $850 million of 3.7% notes with a spread of 115 bps over Treasuries.

The $800 million tranche of 4% seven-year notes priced with a Treasuries plus 130 bps spread.

General Mills placed $1.4 billion of 4.2% 10-year notes at a 145 bps over Treasuries spread.

The $500 million tranche of 4.55% 20-year notes were sold with a spread of 155 bps over Treasuries.

In the final tranche, General Mills priced $650 million of 4.7% 30-year notes at a Treasuries plus 170 bps spread.

Goldman Sachs & Co., Barclays, BofA Merrill Lynch, Citigroup Global Markets, Deutsche Bank Securities and Morgan Stanley & Co. LLC were the bookrunners.

The maker of consumer food products is based in Minneapolis.

Charter prices $2.5 billion

Charter Communications subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. priced $2.5 billion of senior secured notes (Ba1/BBB-/BBB-) in a two-part offering on Tuesday, according to a market source.

The companies sold $800 million of 5.375% 20-year notes at a spread of 245 bps over Treasuries. The notes were talked to price in the Treasuries plus 250 bps to 255 bps area.

The deal also included $1.7 billion of 5.75% 30-year notes priced at a Treasuries plus 275 bps spread, on the tight side of spread guidance in the 275 bps to 280 bps area.

Citigroup Global Markets and Deutsche Bank Securities were the bookrunners.

Charter is a Stamford, Conn.-based broadband communications company.

Welltower sells notes

Welltower sold $550 million of 4.25% 10-year notes on Tuesday at 99.959 to yield 4.255%, or a spread of Treasuries plus 148 bps, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes (Baa1/BBB+/BBB+) priced on the tight side of guidance in the Treasuries plus 150 bps area.

BofA Merrill Lynch, Deutsche Bank Securities, MUFG, Barclays, Citigroup Global Markets, Credit Agricole Securities (USA) Inc. and Wells Fargo Securities were the bookrunners.

The Toledo, Ohio-based real estate investment trust invests in senior housing and health care real estate.

Marriott prices $450 million

Marriott International priced $450 million of 4% series X 10-year notes on Tuesday at a spread of 130 bps over Treasuries, according to an FWP filing with the SEC.

The notes (Baa2/BBB/) priced at 99.281 to yield 4.088%.

BofA Merrill Lynch, Deutsche Bank Securities and Wells Fargo Securities were the active bookrunners.

The lodging company is based in Bethesda, Md.

Union Electric brings bonds

Union Electric priced $425 million of 4% 30-year mortgage bonds at 99.567 to yield 4.025%, according to an FWP filing with the SEC on Tuesday.

The bonds (A2/A/) priced with a spread of 100 bps over Treasuries.

Barclays, MUFG, RBC Capital Markets LLC, TD Securities (USA) LLC, BNY Mellon Capital Markets LLC and KeyBanc Capital Markets Inc. were the bookrunners.

Union Electric, doing business as Ameren Missouri, is a subsidiary of St. Louis-based electric and natural gas company Ameren Corp.

Freddie Mac reopens

In other issuance on Tuesday, Freddie Mac priced a $250 million add-on to its 2.375% Reference Notes due Feb. 16, 2021 at 99.767 with a stop yield of 2.459% in an internet-based Dutch auction, according to a news release.

The bid-to-cover ratio on the notes was 4.94 to 1.

Freddie Mac originally sold $2.25 billion of the notes on Feb. 15 at 99.736 to yield 2.467%, or a spread of 7 bps over Treasuries.

The total outstanding now is $2.5 billion.

The government-backed mortgage lender is based in McLean, Va.

Aegon holds roadshow

Aegon held a roadshow on Tuesday for an offering of fixed-to-floating rate subordinated notes due 2048 (Baa1/BBB/), according to a market source.

The company announced details of the deal in a 424B3 filed with the Securities and Exchange Commission during the session.

J.P. Morgan Securities, BofA Merrill Lynch, Deutsche Bank Securities, Morgan Stanley and Wells Fargo Securities are the bookrunners.

The international life insurance, pensions and asset management company is based in The Hague.

© 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.