High-grade primary sees $12 billion day; Time Warner prices; bonds mixed in secondary

By Aleesia Forni

New York, Nov. 17 – Westpac Banking Corp. led another storm of issuers to Tuesday’s high-grade market.

Roughly $12 billion of new paper added to this week’s total, pushing the supply for November’s last full week to more than $20 billion.

Westpac Banking sold a $3.75 billion three-part offering of notes, all at the tight side of guidance, and was joined in the primary by another Yankee issuer, Societe Generale, which sold $1.5 billion tier 2 bonds in two tranches.

Other new issues priced on Tuesday from International Finance Corp., ING Bank NV, PBF Holding Co., LLC, Ameren Corp. and Pricoa Global Funding.

Novartis Capital Corp. also entered the primary, selling $3 billion of bonds around 15 basis points tight of initial talk.

And Time Warner Inc. offered an upsized $900 million bond offering in new and reopened tranches on Tuesday.

In the secondary market, Time Warner’s existing notes (Baa2/BBB) traded flat on the short end to 2 bps wider on the long end.

Meantime, bank and financial paper was mixed over the course of the trading day, according to a market source.

The Markit CDX North American Investment Grade 25 index was unchanged on the day at a spread of 83 bps.

Westpac new issue

Westpac Banking sold a $3.75 billion three-tranche offering of senior notes (Aa2/AA-/AA-) in fixed- and floating-rate parts due 2018 and 2020 on Tuesday, according to a market source.

A $1 billion 1.95% tranche of three-year notes sold at 99.991 to yield 1.953%, or Treasuries plus 77 bps.

The notes came at the tight side of the Treasuries plus 80 bps area guidance. Initial talk was in the Treasuries plus 90 bps area.

The company also sold a $1 billion floating-rate piece of three-year notes at par to yield Libor plus 74 bps.

The notes were talked at the Libor equivalent to the three-year fixed-rate tranche.

And $1.75 billion of 2.6% five-year notes sold at 99.925 to yield 2.616%. The five-year tranche sold with a 97 bps spread over Treasuries.

Guidance was in the Treasuries plus 100 bps area following initial talk in the Treasuries plus 110 bps area.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners.

Proceeds from the offering will be used for general corporate purposes.

The banking organization is based in Sydney, Australia.

Novartis sells $3 billion

Novartis Capital priced $3 billion of senior notes (Aa3/AA-) in two tranches on Tuesday, according to a market source.

The company priced $1.75 billion of 3% 10-year notes at 99.01 to yield 3.116% with a spread of Treasuries plus 85 bps.

The notes sold in line with guidance set in the Treasuries plus 85 bps area, having tightened from talk in the Treasuries plus 100 bps area.

A $1.25 billion 4% 30-year piece sold at 98.029 to yield 4.115%, or 105 bps over Treasuries.

Guidance was in the Treasuries plus 105 bps to 110 bps range. Initially, talk was set in the Treasuries plus 125 bps area.

BofA Merrill Lynch, Citigroup and JPMorgan are the bookrunners.

Proceeds are being used for general corporate purposes outside of Switzerland, including refinancing of short-term and long-term debt.

The notes will feature a make-whole call and are guaranteed by Basel, Switzerland-based parent company Novartis AG.

The issuer is a holding company for pharmaceuticals and health care subsidiaries and is based in New York City.

Societe Generale tier 2 notes

Societe Generale priced $1.5 billion of tier 2 bonds (Baa3/BBB) on Tuesday in two tranches, according to a market source.

The sale included $1 billion of 4.75% 10-year bonds sold at Treasuries plus 255 bps.

Also, $500 million of 5.625% 30-year bonds sold at Treasuries plus 265 bps.

Both tranches sold at the tight end of revised price talk.

Proceeds will be use for general corporate purposes.

Societe Generale, JPMorgan and UBS Securities LLC were the bookrunners.

The financial services company is based in Paris.

Time Warner upsizes

Time Warner sold an upsized $900 million bond offering in new and reopened tranches on Tuesday, according to an informed source and a 424B3 filed with the Securities and Exchange Commission.

The sale included a $600 million tranche of 3.875% notes due Jan. 15, 2026 sold with a spread of 162.5 bps over Treasuries.

A $300 million tap of the company’s existing 4.85% debentures due July 15, 2045 sold at 200 bps over Treasuries.

The original $600 million issue priced at Treasuries plus 195 bps on May 28.

Both tranches sold at the tight side of guidance.

Barclays, Citigroup, Deutsche Bank Securities Inc. and JPMorgan are the joint bookrunners.

The notes are guaranteed by Historic TW Inc. In addition, Home Box Office, Inc. and Turner Broadcasting System, Inc. will guarantee Historic TW’s guarantee of the notes.

Proceeds will be used for general corporate purposes.

The media company is based in New York.

Ameren two-parter prices

Ameren sold $700 million of senior notes (Baa1/BBB/BBB+) in tranches due 2020 and 2026 on Tuesday, according to a market source and an FWP filing with the SEC.

There was a $350 million tranche of 2.7% five-year notes priced at 99.977 to yield 2.705%, or Treasuries plus 105 bps.

And $350 million of 3.65% long 10-year notes sold at 99.911 to yield 3.661% with a spread of 140 bps over Treasuries.

Both tranches sold at the tight side of guidance.

Bookrunners are Barclays, BofA Merrill Lynch, JPMorgan and Mizuho Securities.

The St. Louis-based electric and natural gas company plans to use the proceeds to repay a portion of short-term debt, consisting of commercial paper issuances.

IFC, ING do green bonds

A pair of financial names sold green bonds during the session.

International Finance priced a $500 million offering of 1.25% three-year green bonds (Aaa/AAA) on Tuesday at mid-swaps plus 10 bps, a market source said.

Pricing came in line with guidance, which was set in the mid-swaps plus 10 bps area.

Citigroup, HSBC Securities and JPMorgan are the bookrunners on the deal.

Proceeds will be use to fund climate-friendly projects.

The World Bank member and lender to the private sector in developing countries is based in Washington, D.C.

And ING Bank priced an upsized $800 million issue of 2% three-year green bonds (A1/A/A) on Tuesday at Treasuries plus 90 bps, a market source said.

The notes sold at 99.736 to yield 2.091%.

The notes were guided in the Treasuries plus 95 bps area following talk in the 105 bps area over Treasuries.

Bookrunners were Citigroup, Credit Agricole, ING, Lloyds Bank and SEB.

The notes were sold via Rule 144A and Regulation S.

The Amsterdam-based financial services company plans to use the proceeds to fund green projects.

PBF crossovers price

PBF Holding Co., LLC and PBF Finance Corp. priced a $500 million issue of split-rated eight-year senior secured notes (B1/BBB-) at par to yield 7% on Tuesday, according to a syndicate source.

The yield printed at the tight end of the 7% to 7¼% yield talk. Initial guidance was 7¼%, according to a trader.

The quick-to-market deal was marketed by means of one-on-one meetings with investors that took place on Tuesday morning in New York, as well as on an investor conference call on Tuesday morning.

Joint global bookrunner UBS Investment Bank was lead left bookrunner. Deutsche Bank Securities Inc. is also a joint global bookrunner.

Barclays, Citigroup, Credit Agricole CIB and Credit Suisse Securities (USA) LLC were joint bookrunners.

The Parsippany, N.J.-based independent petroleum refiner plans to use the proceeds for general corporate purposes, including a portion of the purchase price for Exxon Mobil Corp.’s refinery in Torrance, Calif.

PBF supplies unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States.

Time Warner mixed

Time Warner’s 3.6% notes due 2025 were unchanged on Tuesday at 160 bps bid, a market source said.

The company sold $1.5 billion of the notes on May 28 at Treasuries plus 150 bps.

Its 4.85% debentures due 2045 widened 2 bps to 199 bps bid during the session.

The company sold $600 million of the debentures in the May 28 offering at Treasuries plus 195 bps.

Time Warner is a media company based in New York.

Bank of America flat

Bank of America Corp.’s 3.875% senior notes due 2025 traded flat at 145 bps bid on Tuesday, a market source said.

Bank of America sold $2.5 billion of the notes (Baa1/A-/A) on July 27 at a spread of 167 bps over Treasuries.

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

Barclays mixed

Barclays plc’ 5.25% notes due 2045 eased 1 bp to 199 bps bid in the secondary market, a source said.

Barclays sold $1.5 billion of the bonds (Baa3/BBB/A) on Aug. 10 at a spread of Treasuries plus 235 bps.

Barclays’ 2.875% notes due 2020 firmed 4 bps on Tuesday to 116 bps bid in late afternoon trading, a market source said.

Barclays sold $1 billion of the notes (Baa3/BBB/A) on June 1 at Treasuries plus 142 bps.

The financial services company is based in London.

HSBC improves

HSBC Holdings plc’s 4.25% notes due 2025 firmed 3 bps to 194 bps bid, according to a market source.

HSBC sold $1.5 billion of the notes (A2/A+) on Aug. 10 at a spread of Treasuries plus 212 bps.

The banking and financial services company is based in London.

Paul A. Harris contributed to this review

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