Toronto-Dominion, GATX, Bemis price; Shire preps five-part deal; credit spreads flat

By Cristal Cody

Eureka Springs, Ark., Sept. 8 – Investment-grade primary action slowed compared to the previous two sessions but remained active with several issuers on Thursday.

Toronto-Dominion Bank priced $1.5 billion of 15-year non-viability contingent capital subordinated notes during the session.

GATX Corp. sold $350 million of 10-year senior notes.

Bemis Co., Inc. brought $300 million of 10-year senior notes to market on Thursday.

In the Canadian high-grade primary market, Inter Pipeline Ltd. priced C$350 million of seven-year senior medium-term notes.

The Canadian Western Bank and Suncor Energy Inc. also were in the Canadian primary market with bond offerings on Thursday, a source said. Final details were not available by press time.

Coming up, high-grade supply includes a five-part deal from Shire Acquisitions Investments Ireland DAC, which is marketing the senior notes over the upcoming week.

In other expected new issuance, Southern Co. Gas Capital Corp. plans to sell seven- and 30-year senior notes.

The Markit CDX North American Investment Grade index ended unchanged at a spread of 72 bps.

In the secondary market, American Honda Finance Corp.’s 2.3% notes due 2026 that priced on Tuesday traded 4 bps better earlier in the day.

Mitsubishi UFJ Financial Group, Inc.’s 2.757% senior notes due 2026 brought to market on Tuesday traded flat to 1 bp wider than issuance.

TD Bank prices $1.5 billion

Toronto-Dominion Bank sold $1.5 billion of 3.625% non-viability contingent capital subordinated notes due 2031 on Thursday, according to a news release.

The notes will bear a 3.625% fixed rate to but excluding Sept. 15, 2026 and then bear a rate at five-year mid-swaps plus 220.5 bps thereafter to but excluding Sept. 15, 2031.

TD Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.

The notes are redeemable on Sept. 15, 2026 at par, plus accrued and unpaid interest.

Proceeds from the offering will qualify as tier 2 capital and be used for general corporate purposes.

The bank and financial services company is based in Toronto.

GATX raises $350 million

GATX sold $350 million of 3.25% 10-year senior notes with a spread of Treasuries plus 172 bps on Thursday, according to an FWP filing with the Securities and Exchange Commission.

The notes (Baa2/BBB) priced at 99.315 to yield 3.331%.

Citigroup Global Markets Inc., BofA Merrill Lynch, Morgan Stanley & Co. Inc. and U.S. Bancorp Investments, LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

GATX is a transportation leasing company based in Chicago.

Bemis sells $300 million

Bemis sold $300 million of 3.1% 10-year senior notes with a spread of 150 bps over Treasuries on Thursday, according to an FWP filing with the SEC.

The notes (Baa2/BBB) priced at 99.829 to yield 3.12%.

BNP Paribas Securities Corp., JPMorgan, BofA Merrill Lynch, U.S. Bancorp and Wells Fargo Securities were the bookrunners.

Proceeds will be used to repay a portion of the company’s commercial paper and for general corporate purposes.

The diversified packaging company is based in Neenah, Wis.

Shire to price five tranches

Shire Acquisitions Investments Ireland is marketing a five-tranche offering of senior notes, according to a market source and a 424B5 filing with the SEC.

The deal will include four tranches of fixed-rate notes and one tranche of floating-rate notes.

Investor meetings are set for the U.S. markets Monday through Wednesday and in London on Sept. 15.

BofA Merrill Lynch, Barclays and Morgan Stanley are the bookrunners.

The co-managers are Bank of China, Citigroup, Commerzbank, Credit Suisse, Deutsche Bank Securities Inc., DNB Markets, Lloyds Securities, Mizuho Securities, MUFG, RBC Capital Markets, LLC, RBS, Santander and SMBC Nikko.

The notes are fully and unconditionally guaranteed by parent company Shire plc.

Shire plans to use the proceeds to repay borrowings due on Jan. 11, 2017 under its January 2016 bridge facilities agreement and any remaining proceeds for general corporate purposes.

Shire is a global biotechnology company based in Dublin.

Southern Co. Gas eyes sale

Southern Co. Gas Capital intends to price seven- and 30-year senior notes in two tranches, according to 424B5 filings with the SEC on Thursday.

JPMorgan, Mizuho Securities USA Inc., MUFG and SunTrust Robinson Humphrey, Inc. are the bookrunners.

Proceeds will be used to repay funds the parent company lent to complete the acquisition of the 50% equity interest in Southern Natural Gas and related transaction costs, to repay $120 million of series A senior floating-rate notes due in October and for general corporate purposes.

Southern Co. Gas Capital is a financing arm of Atlanta-based energy services holding company Southern Co. Gas.

American Honda firms

American Honda Finance’s 2.3% notes due 2026 traded tighter early on Thursday at 76 bps offered, a market source said.

The company sold $500 million of the notes (A1/A+) on Tuesday at 80 bps over Treasuries.

American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.

MUFG mostly unchanged

Mitsubishi UFJ Financial Group’s 2.757% senior notes due 2026 traded flat to 1 bp softer earlier in the day at 124 bps offered, according to a market source.

Mitsubishi UFJ sold $1 billion of the 10-year notes (A1/A/A) on Tuesday at a spread of 123 bps over Treasuries.

The bank is based in Tokyo.

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