ING, Medtronic, BlackRock sell investment-grade bonds; Genpact upsizes; credit spreads soften

By Cristal Cody

Tupelo, Miss., March 21 – High-grade issuers turned out on Tuesday and priced more than $8 billion of bonds during the session.

ING Groep NV tapped the primary market with a $4 billion three-part offering of senior notes.

Medtronic plc priced $2 billion of senior notes in three fixed-rate tranches. The company dropped a planned floating-rate tranche.

BlackRock Inc. priced $700 million of 10-year senior notes.

Southern California Edison Co. sold $700 million of 30-year first and refunding mortgage bonds.

Genpact Ltd. subsidiary Genpact Luxembourg Sarl brought an upsized $350 million of five-year senior notes to market.

International Finance Corp. priced a $500 million offering of three-year notes.

In the Canadian high-grade primary market on Tuesday, John Deere Canada Funding Inc. sold C$250 million of 1.85% four-year senior notes at 99.992 to yield 1.852%, or a spread of 77 basis points versus the interpolated Government of Canada bond curve.

Also, 407 International Inc. priced C$250 million of 3.43% senior notes due June 1, 2033 at 99.917 to yield 3.437%. The series 17-A1 notes priced with a spread of 122 bps over the Government of Canada benchmark.

The Markit CDX North American Investment Grade index eased about 1 bp to close on Tuesday at a spread of 69 bps.

ING prices $4 billion

ING Groep priced a $4 billion three-part dollar-denominated offering of senior notes (Baa1/A-/A+) on Tuesday, according to a market source.

The company sold $1 billion of floating-rate notes due March 29, 2022 at Libor plus 115 bps.

ING placed $1.5 billion of 3.15% five-year fixed-rate notes at a spread of Treasuries plus 125 bps.

ING also priced $1.5 billion of 3.95% 10-year notes at a Treasuries plus 155 bps spread.

BNP Paribas Securities Corp., Goldman Sachs & Co., HSBC Securities (USA) Inc., ING and J.P. Morgan Securities LLC were the bookrunners.

All three tranches will be non-callable without permission from the trustee, according to a 424B2 filing with the Securities and Exchange Commission.

Proceeds will be used for general corporate purposes.

The global financial institution is based in Amsterdam.

Medtronic brings notes

Medtronic priced $2 billion of senior notes (A3/A/) in three fixed-rate tranches on Tuesday, according to a market source.

The offering included two tranches of fixed-rate notes placed by Medtronic Global Holdings SCA and guaranteed by Medtronic plc and Medtronic, Inc. The company dropped a planned offering of floating-rate notes.

Medtronic Global Holdings priced $1 billion of 1.7% two-year notes at a spread of Treasuries plus 47 bps.

The company sold $850 million of 3.35% 10-year notes at a 92 bps over Treasuries spread.

Also, subsidiary Medtronic, Inc. priced a $150 million add-on to the company’s 4.625% bonds due March 15, 2045 on Tuesday at a spread of Treasuries plus 117 bps.

The company originally sold $4 billion of the bonds on Dec. 1, 2014 at 99.732 to yield 4.642%, or 170 bps over Treasuries. The total outstanding now is $4.15 billion.

The reopened bonds are guaranteed by Medtronic plc and Medtronic Global Holdings SCA.

All three tranches priced on the tight side of guidance.

Citigroup Global Markets Inc., Goldman Sachs and Morgan Stanley & Co. LLC were the bookrunners.

The notes feature a make-whole call, with the 4.625% notes callable at Treasuries plus 30 bps until March 15, 2045, when they become callable at par, according to a 424B3 filing with the Securities and Exchange Commission.

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

Medtronic is a medical technology and services company based in Dublin. Subsidiary Medtronic Global Holdings is based in Luxembourg. Medtronic Inc. is based in Minneapolis.

BlackRock sells $700 million

BlackRock priced $700 million of 3.2% 10-year senior notes (A1/AA-/) on Tuesday at 99.595 to yield 3.248%, according to an FWP filing with the Securities and Exchange Commission.

The notes due March 15, 2027 were sold with a spread of Treasuries plus 82 bps.

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

Proceeds will be used to redeem the company’s 6.25% notes due 2017 and for general corporate purposes.

The investment management company is based in New York.

California Edison sells bonds

Southern California Edison priced $700 million of 4% 30-year series 2017A first and refunding mortgage bonds on Tuesday at a spread of 95 bps over Treasuries, according to an FWP filing with the SEC.

The bonds due April 1, 2047 (Aa3/A/A+) priced at 99.93 to yield 4.004%.

The bookrunners were J.P. Morgan Securities, Mizuho Securities USA Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., BNY Mellon Capital Markets LLC and TD Securities (USA) LLC.

Proceeds will be used to repay commercial paper borrowings and for general corporate purposes.

Southern California Edison is an electric utility company based in Rosemead, Calif.

International Finance prices

International Finance (Aaa/AAA) priced a $500 million offering of 1.75% three-year notes on Tuesday at a spread of Treasuries plus 22.3 bps, according to a market source.

The notes are due March 30, 2020.

Citigroup Global Markets, Credit Agricole Securities (USA) Inc. and J.P. Morgan Securities were the bookrunners.

Washington, D.C.-based International Finance is a member of the World Bank Group.

Genpact Luxembourg prints

Genpact Luxembourg sold an upsized $350 million of 3.7% five-year senior notes on Tuesday in a Rule 144A and Regulation S private offering at a spread of Treasuries plus 175 bps, according to a market source and a company release.

The notes due April 1, 2022 (Baa3/BBB-/) priced on the tight side of guidance.

The deal was upsized from $300 million.

Citigroup Global Markets, Morgan Stanley and Wells Fargo Securities were the bookrunners.

The notes are guaranteed by Genpact.

Proceeds will be used to repay outstanding loans under the company’s revolving credit facility and for general corporate purposes.

Genpact is a Luxembourg-based global professional process services firm.

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