General Motors, Digital Realty, Huntington Bank, Southwestern Public price; GM notes stable

By Cristal Cody

Tupelo, Miss., Aug. 2 – The session on Wednesday saw more than $6 billion of corporate and SSA investment-grade bond issuance.

General Motors Co. priced a $3 billion four-tranche offering of senior notes.

Digital Realty Trust LP sold $1.35 billion of guaranteed notes in two tranches.

Huntington National Bank placed $700 million of five-year senior notes on the tightest side of guidance. The company dropped a planned five-year floating-rate tranche.

Southwestern Public Service Co. priced $450 million of 30-year first mortgage bonds.

Also, Ashtead Capital Inc. priced a $1.2 billion split-rated two-part note offering.

In other deal activity, Nordic Investment Bank (Aaa/AAA) sold $500 million of 1.5% two-year global notes at a spread of Treasuries plus 18.5 basis points on Wednesday.

In the secondary market, General Motors’ existing notes (Ba1/BBB-/BBB-) were flat after weakening in the previous session, a market source said.

The company’s 6.75% notes due April 1, 2046 headed out stable at 261 bps bid after widening about 12 bps in secondary trading on Tuesday.

The notes priced in a $750 million tranche on Feb. 18, 2016 at a spread of Treasuries plus 415 bps.

The Markit CDX North American Investment Grade index was modestly tighter on the day at a spread of 56 bps.

GM prices $3 billion

General Motors sold $3 billion of senior notes (BBB/BBB) in four tranches on Wednesday, according to a market source.

The company priced $500 million of three-year floating-rate notes at par to yield Libor plus 80 bps.

General Motors sold $750 million of 4.2% 10-year notes at 99.852 to yield 4.217% and a Treasuries plus 195 bps spread.

The $1 billion tranche of 5.15% long 20-year notes priced at 99.937 to yield 5.154% and a spread of 230 bps over Treasuries.

In the final tranche, the company priced $750 million of 5.4% long 30-year notes at 99.927 to yield 5.404% and a spread of Treasuries plus 255 bps.

Pricing came on the tightest side of guidance.

The offering had a combined final book size of more than $8 billion.

Deutsche Bank Securities Inc., BofA Merrill Lynch, Morgan Stanley & Co. LLC, Goldman Sachs & Co. and J.P. Morgan Securities LLC were the bookrunners.

Proceeds will be used to repay debt under the company’s three-year revolving credit facility and for general corporate purposes.

General Motors is a Detroit-based automaker.

Digital Realty sells notes

Digital Realty Trust sold $1.35 billion of guaranteed fixed-rate bonds (Baa2/BBB/BBB) in two parts, according to a market source and an FWP filed with the Securities and Exchange Commission on Wednesday.

The company priced $350 million of 2.75% notes due Feb. 1, 2023 at 99.93 to yield 2.764%. The notes priced with a spread of Treasuries plus 95 bps, tighter than talk in the Treasuries plus 105 bps area.

Digital Realty sold $1 billion of 3.7% 10-year notes at 99.924 to yield 3.709% and with a Treasuries plus 145 bps spread. The notes priced on the tightest side of guidance in the 150 bps plus Treasuries spread area.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities, BofA Merrill Lynch, Morgan Stanley, Barclays, Mizuho Securities USA Inc., MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.

The notes will be guaranteed by Digital Realty Trust, Inc.

Proceeds will be used for the repayment, redemption and/or discharge of DuPont Fabros Technology Inc. debt, as well as certain fees and expenses from the merger with DuPont.

Digital Realty also priced $200 million of 5.25% cumulative redeemable preferred stock on Wednesday.

The San Francisco-based company owns, acquires, develops and operates data centers.

DuPont Fabros is a Washington, D.C.-based real estate investment trust that focuses on wholesale data centers.

Huntington Bank brings deal

Huntington National Bank (A3/BBB+/A-) priced $700 million of 2.5% five-year senior notes on the tightest side of guidance at a spread of 73 bps over Treasuries on Wednesday, a market source said.

BofA Merrill Lynch, Deutsche Bank Securities, Natixis Securities Americas LLC and Morgan Stanley were the bookrunners.

Huntington National Bank is part of Columbus, Ohio-based bank holding company Huntington Bancshares Inc.

Southwestern Public prices

Southwestern Public Service priced $450 million of 3.7% 30-year first mortgage bonds, series No. 5, on Wednesday at a spread of 88 bps over Treasuries, according to an FWP filed with the SEC.

The bonds (A2/A/A-) priced at 99.425 to yield 3.732%.

KeyBanc Capital Markets Inc., Mizuho Securities., U.S. Bancorp Investments and Wells Fargo Securities were the bookrunners.

Proceeds will be used for short-term debt repayment, the Aug. 30 redemption of the company’s $250 million of 8.75% series G senior notes due Dec. 1, 2018 and for general corporate purposes.

Amarillo, Texas-based Southwestern Public Service generates, purchases, distributes and sells electricity in portions of Texas and New Mexico.

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