Fannie Mae, Spectra Energy, Tanger in primary; credit spreads, PepsiCo, GM Financial improve

By Cristal Cody

Eureka Springs, Ark., Oct. 5 – New high-grade bond issuance on Wednesday included deals from Fannie Mae, Spectra Energy Partners LP and Tanger Properties LP.

Fannie Mae priced $3.5 billion of five-year Benchmark Notes.

Spectra Energy Partners brought an $800 million two-part offering of senior notes.

Tanger Properties reopened its 3.125% senior notes due Sept. 1, 2026 in a $100 million add-on.

The Markit CDX North American Investment Grade index closed the day about 1 basis point tighter at a spread of 75 bps.

PepsiCo Inc.’s senior notes (A1/A) brought to market on Monday traded about 1 bp to 3 bps better than issuance earlier on Wednesday.

General Motors Financial Co. Inc.’s 4% senior notes due 2026 improved about 3 bps from where the notes priced on Monday.

Fannie Mae prices

Fannie Mae priced $3.5 billion of 1.375% five-year Benchmark Notes on Wednesday at 99.832 to yield 1.41%, according to a news release.

The notes priced with an 18.5 bps spread over Treasuries.

Goldman Sachs & Co., J.P. Morgan Securities LLC and TD Securities (USA) LLC were the lead managers.

Fannie Mae is a mortgage credit provider based in Washington, D.C.

Spectra sells $800 million

Spectra Energy Partners priced $800 million of senior notes (Baa2/BBB/BBB) in two parts on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The company sold $600 million of 3.375% notes due Oct. 15, 2026 at 99.865 to yield 3.391% and a spread of 167 bps over Treasuries.

Spectra Energy priced a $200 million add-on to its 4.5% notes due March 15, 2045 at 100.663 to yield 4.458%. The bonds priced with a 202 bps spread over Treasuries.

The company originally sold $500 million of the 4.5% notes on March 12, 2015. The total outstanding now is $700 million.

JPMorgan, BofA Merrill Lynch, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., MUFG, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the bookrunners.

Proceeds from the deal will be used to repay commercial paper, to fund capital expenditures and for general partnership purposes.

The natural gas transmission and production company is based in Houston.

Tanger reopens

Tanger Properties priced a $100 million add-on to its 3.125% senior notes due Sept. 1, 2026 at 98.962 to yield 3.248% on Wednesday, according to an FWP filing with the SEC.

The notes (Baa1/BBB+/) priced with a spread of 153 bps plus Treasuries.

BofA Merrill Lynch, U.S. Bancorp Investments Inc., Jefferies LLC, SunTrust Robinson Humphrey and Wells Fargo were the bookrunners.

The company originally sold $250 million of the notes on Aug. 1 at 99.605 to yield 3.171% and with a spread of 168 bps over Treasuries. The issue now has a total outstanding amount of $350 million.

Proceeds from the reopening are expected to be used to repay a portion of the company’s $196 million of borrowings under its $520 million unsecured lines of credit due October 2019 and for general corporate purposes.

The outlet center real estate investment trust is based in Greensboro, N.C.

PepsiCo firms

PepsiCo’s 2.375% notes due 2026 traded about 2 bps tighter early Wednesday at 72 bps offered, according to a market source.

The company sold $1 billion of the 10-year bonds on Monday at 75 bps plus Treasuries.

PepsiCo’s 3.45% notes due 2046 were quoted 2 bps better in early secondary trading at 112 bps offered.

The bonds were priced on Monday in a $1 billion tranche at a spread of Treasuries plus 115 bps.

PepsiCo is a Purchase, N.Y.-based food and beverage company.

GM Financial improves

General Motors Financial’s 4% notes due 2026 firmed about 2 bps to 237 bps offered in the secondary market, a source said.

The company (Ba1/BBB-/BBB-) sold $750 million of the notes on Monday at Treasuries plus 240 bps.

The notes are guaranteed by operating subsidiary AmeriCredit Financial Services, Inc.

General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.

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