Capital One sells $2.5 billion bonds; Texas Instruments, SL Green price; supply strong

By Cristal Cody

Tupelo, Miss., Oct. 26 – Capital One Financial Corp. led deal action in the high-grade bond market on Thursday with a $2.5 billion three-part offering of senior notes.

Also in the primary market, Texas Instruments Inc. sold $500 million of 10-year notes.

In addition, SL Green Realty Corp., SL Green Operating Partnership, LP and Reckson Operating Partnership, LP reopened their 4.5% senior notes due Dec. 1, 2022 on Thursday in a $100 million add-on to the issue.

More than $28 billion of investment-grade bonds have priced over the week, surpassing market expectations of about $20 billion of supply, a source said.

The Markit CDX North American Investment Grade 29 index closed the day mostly unchanged at a spread of 54 basis points.

In its deal, Capital One Financial priced $2.5 billion senior notes (Baa1/BBB/A-) in three tranches on Thursday, according to a market source.

Capital One sold $400 million of three-year floating-rate notes at Libor plus 45 bps and $600 million of 2.4% three-year fixed-rate notes at a spread of Treasuries plus 68 bps.

Capital One priced $1.5 billion of 3.3% seven-year notes at a Treasuries plus 105 bps spread.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Capital One Securities were the bookrunners.

Capital One is a McLean, Va.-based financial services company.

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