3M, Southwestern Electric, Bell Canada, KfW price notes; high-grade deal pipeline grows

By Cristal Cody

Tupelo, Miss., Sept. 11 – New high-grade issuance on Tuesday included a $2.25 billion five-part offering of notes from 3M Co.

Southwestern Electric Power Co. also sold $575 million of 10-year senior notes.

Bell Canada priced a $400 million tap of its 4.464% notes due April 1, 2048 2 basis points wider than where the issue came in March.

In other supply, KfW priced a $1.5 billion add-on to its 2.75% global notes due Oct. 1, 2020.

The Inter-American Development Bank (Aaa/AAA/) also was offering dollar-denominated global notes due Sept. 18, 2028 on Tuesday that were initially talked to price in the mid-swaps plus 13 bps area.

Meanwhile, several high-grade issuers are planning new bond deals.

Unibail-Rodamco-Westfield SE was marketing a benchmark-sized dollar-denominated Rule 144A and Regulation S offering of senior notes with fixed-income investor meetings on Monday and investor calls on Tuesday.

Enel Finance International NV also intends to price a dollar-denominated Rule 144A- and Regulation S-eligible offering of senior notes following investor calls held Monday.

Seven & i Holdings Co., Ltd. is expected to bring a benchmark-sized dollar-denominated offering of three-year senior notes to the primary market.

Also beginning Thursday, Nestle Holdings Inc. will hold a roadshow for a Rule 144A and Regulation S offering of dollar-denominated senior notes.

Syndicate sources expect as much as $40 billion of new issuance for the week. Issuers priced nearly $9 billion of bonds during Monday’s session.

The Markit CDX North American Investment Grade 30 index ended the day mostly unchanged at a spread of 58 bps.

3M prices $2.25 billion

3M priced a $2.25 billion five-part offering of medium-term notes (A1/AA-/) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The company sold $400 million of 3% three-year notes at 99.795 to yield 3.072% and a spread of 25 bps over Treasuries.

A $300 million tranche of floating-rate notes due Feb. 14, 2024 priced at par to yield Libor plus 30 bps.

3M sold $300 million of 3.25% notes due Feb. 14, 2024 priced at 99.756 to yield 3.3% and a Treasuries plus 43 bps spread.

A $600 million offering of 3.625% 10-year notes priced at par to yield a spread of 65 bps over Treasuries.

The final $650 million tranche of 4% 30-year bonds priced at 98.811 to yield 4.069% and a spread of 95 bps plus Treasuries.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and Credit Suisse Securities (USA) LLC were the bookrunners.

3M is a Maplewood, Minn.-based manufacturer of products including Post-it notes and Scotch Office tape.

Southwestern Electric prices

Southwestern Electric Power priced $575 million of 4.1% 10-year senior notes (Baa2/A-/) at par to yield a spread of 112.5 bps over Treasuries on Tuesday, according to a FWP filing with the SEC.

The bookrunners were J.P. Morgan Securities LLC, BofA Merrill Lynch, Scotia Capital (USA) Inc. and Wells Fargo Securities LLC.

Southwestern Electric Power is a Columbus, Ohio-based electric power company.

Bell Canada reopens bonds

Bell Canada priced a $400 million reopening of its 4.464% notes due April 1, 2048 (Baa1/BBB+/BBB (high)) on Tuesday at a spread of 142 bps over Treasuries, according to an FWP filing with the SEC.

The notes priced at 98.768 to yield 4.54%.

Barclays, BMO Capital Markets Corp., Citigroup Global Markets, BofA Merrill Lynch and Scotia Capital were the bookrunners.

The company previously sold $750 million of the bonds on March 26 at par to yield a Treasuries plus 140 bps spread. The total outstanding is now $1.15 billion.

The bonds are fully and unconditionally guaranteed by parent company BCE Inc.

The telecommunications company is based in Montreal.

KfW prices $1.5 billion tap

KfW (Aaa/AAA/AAA) priced a $1.5 billion add-on to its 2.75% global notes due Oct. 1, 2020 on Tuesday at 99.74, according to an FWP filing with the SEC.

The notes were initially talked to price with a spread in the mid-swaps minus 5 bps area.

BMO Capital Markets Corp., Citigroup Global Markets Ltd. and J.P. Morgan Securities plc were the lead managers.

KfW previously issued $3 billion of the notes on Sept. 17, 2013. The issue now has a total outstanding of $4 billion.

The government-backed bank is based in Frankfurt.

Unibail eyes deal

Unibail-Rodamco-Westfield (A2/A/A) is marketing a benchmark-sized dollar-denominated Rule 144A and Regulation S offering of senior notes, according to an informed source.

The company held fixed income investor meetings on Monday and will hold investor calls on Tuesday.

Citigroup Global Markets, Deutsche Bank Securities, J.P. Morgan Securities LLC and SMBC Nikko Securities America, Inc. are the arrangers.

The issuer announced in June that it completed its $16 billion acquisition of Westfield Corp.

Unibail-Rodamco-Westfield is a Paris-based commercial real estate investment company.

Enel readies issue

Enel Finance International intends to price a dollar-denominated Rule 144A- and Regulation S-eligible offering of senior notes (Baa2/BBB+/BBB+/), according to a market source.

The company held fixed-income investor calls on Monday for the offering.

BofA Merrill Lynch, Barclays, Citigroup Global Markets, Credit Suisse Securities, Deutsche Bank Securities, Goldman Sachs, HSBC, J.P. Morgan Securities, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, NatWest Markets and SMBC Nikko Securities are the lead managers.

Enel Finance is a financing arm of Rome-based electricity and gas manufacturer and distributor Enel SpA.

Seven & i plans issue

Seven & i Holdings (A1/AA-/) intends to price a benchmark-sized dollar-denominated offering of three-year senior notes, according to a market source.

The company began holding fixed-income investor calls on Monday in the United States, Europe and Asia for the Rule 144A and Regulation S deal.

Mizuho Securities, Morgan Stanley, Nomura Securities International, Inc. and SMBC Nikko Securities are the arrangers.

Seven & i Holdings is a Tokyo-based retail group that operates businesses including convenience stores, department stores and supermarkets.

Nestle to hold roadshow

Nestle Holdings (Aa2/AA-/) intends to start a roadshow on Thursday for a Rule 144A and Regulation S sale of dollar-denominated senior notes, according to a market source.

BofA Merrill Lynch, Barclays, Citigroup Global Markets and J.P. Morgan Securities are the bookrunners.

Rosslyn, Va.-based Nestle Holdings is a subsidiary of Swiss candy and food products company Nestle SA.

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