Sempra Energy, Realty Income, ERP price; credit spreads ease; Xylem firms; GM mostly flat

By Cristal Cody

Eureka Springs, Ark., Oct. 4 – Sempra Energy, Realty Income Corp. and ERP Operating LP tapped the investment-grade market on Tuesday.

Realty Income sold $600 million of 3% senior notes due Jan. 15, 2027 at 98.671 to yield 3.153%, according to an FWP filing on Tuesday with the Securities and Exchange Commission. The notes (Baa1/BBB+/BBB+) priced with a spread of 147 basis points over Treasuries.

Sempra Energy priced $500 million of 1.625% three-year senior notes with a spread of 72 bps over Treasuries on Tuesday. The notes priced at 99.898 to yield 1.66%.

ERP Operating priced $500 million of 2.85% notes due Nov. 1, 2026 at 99.341 to yield 2.926%. The notes (Baa1/A-/A-) priced with a spread of 125 bps over Treasuries.

Also on Tuesday, Fannie Mae announced plans to price five-year Benchmark Notes.

The Markit CDX North American Investment Grade index closed about 1 basis point softer at a spread of 76 bps.

In the secondary market, Xylem Inc.’s new senior notes (Baa2/BBB/) priced on Monday traded about 4 bps to 12 bps tighter.

General Motors Financial Co. Inc.’s 4% senior notes due 2026 sold during Monday’s session traded flat to 1 bp better in the secondary market.

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