GM Financial, C.R. Bard, Synchrony, AvalonBay, Unum among issuers; AT&T eases; CDX softens

By Cristal Cody

Eureka Springs, Ark., May 4 – Investment-grade companies priced about $5.58 billion of bonds on Wednesday.

General Motors Financial Co. Inc. sold $3 billion in a three-part offering of senior notes.

C.R. Bard, Inc. brought $500 million of 10-year senior notes.

Synchrony Financial sold $500 million of floating-rate senior notes due 2017.

AvalonBay Communities, Inc. priced $475 million of 10-year medium-term notes during the session.

Unum Group brought to market $600 million of senior notes in two parts.

Travelers Cos., Inc. priced $500 million of 30-year senior notes.

Late in the day, Kimco Realty Corp. tapped its 4.25% notes due 2045 with a $150 million reopening.

The Markit CDX North American Investment Grade series 23 index closed the day 2 basis points softer at a spread of 83 bps.

In the secondary market, AT&T Inc.’s senior notes (Baa1//A-) that reopened on Tuesday traded wider on Wednesday.

GM prices $3 billion

General Motors Financial priced $3 billion in a three-part offering of senior notes (/BBB-/BBB-) on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $400 million of floating-rate notes due May 9, 2019 at par to yield a spread of Libor plus 145 bps.

General Motors Financial priced $1.4 billion of 2.4% notes due May 9, 2019 at 99.896 to yield 2.436%, and a spread of Treasuries plus 155 bps. The notes priced on the tight side of guidance of Treasuries plus 160 bps, plus or minus 5 bps.

In the final tranche, the company placed $1.2 billion of 3.7% notes due May 9, 2023 at 99.743 to yield 3.742%. The notes priced with a spread of 220 bps over Treasuries, compared with guidance of Treasuries plus 225 bps, plus or minus 5 bps.

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

Banco Bradesco BBI SA, Deutsche Bank Securities Inc., Goldman Sachs & Co., BofA Merrill Lynch, RBC Capital Markets LLC and SMBC Nikko Securities America, Inc. were the bookrunners.

Proceeds will be added to the company’s general funds and will be available for general corporate purposes.

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

C.R. Bard sells 10-year notes

C.R. Bard sold $500 million of 3% 10-year senior notes (Baa1/A/) at 99.982 to yield 3.002% on Wednesday, according to an FWP filing with the SEC.

The notes priced with a spread of 122 bps over Treasuries.

The bookrunners were BofA Merrill Lynch, Barclays and J.P. Morgan Securities LLC.

Proceeds from the deal will be used for general corporate purposes, including repayment of commercial paper.

C.R. Bard is a Murray Hill, N.J.-based maker of medical devices.

Synchrony Financial prices

Synchrony Financial printed $500 million of floating-rate senior notes (/BBB-/BBB-) due 2017 at par to yield a spread of Libor plus 140 bps on Wednesday, according to an FWP filing with the SEC.

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

Proceeds will be used to invest in liquid assets to further increase the size of the company’s liquidity portfolio or for general corporate purposes.

Synchrony is a consumer financial services company based in Stamford, Conn.

AvalonBay prints 10-year notes

AvalonBay Communities sold $475 million of 2.95% medium-term notes on Wednesday at 99.966, according to a market source and an FWP filing with the SEC.

The notes due May 11, 2026 (Baa1/A-/) priced with a spread of 117 bps over Treasuries, compared with guidance of 120 bps, plus or minus 3 bps.

Morgan Stanley and UBS Securities LLC were the bookrunners.

Proceeds will be used to reduce debt outstanding under the company’s $1.5 billion revolving credit facility and for general corporate purposes, which may include the acquisition, development and redevelopment of apartment communities.

The manager and developer of apartment communities is based in Arlington, Va.

Unum Group sells two tranches

Unum Group priced $600 million of senior notes (Baa2/BBB/) in two parts, including a reopening, on Wednesday, according to a market source and a 424B5 filed with the SEC.

The company sold $350 million of 3% notes due May 5, 2021 at Treasuries plus 180 bps, on the tight side of guidance of 185 bps, plus or minus 5 bps.

Unum also priced $250 million in an add-on to its 5.75% notes due Aug. 15, 2042 at Treasuries plus 270 bps. The notes were talked at Treasuries plus 275 bps, plus or minus 5 bps.

Unum originally sold the 5.75% notes on Aug. 20, 2012 at a spread of Treasuries plus 287.5 bps. The total outstanding is $500 million.

The bookrunners were JPMorgan and Barclays.

Proceeds will be used for general corporate purposes, including the repayment at maturity of the company’s outstanding 7.125% senior notes due in September.

Unum is an employee benefits provider based in Chattanooga, Tenn.

Travelers brings 30-year bonds

Travelers placed a $500 million offering of 3.75% 30-year senior notes (A2/A) at a spread of 115 bps over Treasuries on Wednesday, according to a market source and a 424B3 filing with the SEC.

Barclays, BofA Merrill Lynch, Citigroup and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to retire the company’s $400 million outstanding of 6.25% senior notes due June 20, 2016.

Proceeds also will be used for general corporate purposes and debt retirement, including the potential redemption of the company’s 6.25% fixed-to-floating junior subordinated debentures due 2067.

Travelers is a holding company for commercial, property and casualty insurance subsidiaries based in New York City.

Kimco Realty taps bonds

Kimco Realty priced a $150 million add-on to its 4.25% notes due 2045 with an effective yield of 4.375%, according to a company news release.

The company originally sold $350 million of the notes on March 23, 2015 at 98.945 to yield 4.313% and a spread of 180 basis points over Treasuries. The total issue size is now $500 million.

Jefferies LLC is the bookrunner.

The notes are redeemable before Oct. 1, 2044 at par plus accrued interest.

Proceeds will be used for general corporate purposes, including to prefund near-term maturities such as a portion of the $201.4 million of mortgage debt maturing during the remainder of 2016 with a weighted average interest rate of 5.46%.

The real estate investment trust for shopping centers is based in New Hyde Park, New York.

AT&T softens

In the secondary market, AT&T’s 4.125% notes due 2026 eased 3 bps to 153 bps bid on Wednesday, a source said.

AT&T sold $900 million in a tap of the notes on Tuesday at a spread of Treasuries plus 150 bps.

The notes originally were priced on Jan. 29 in a $1.5 billion tranche at Treasuries plus 195 bps.

AT&T’s 4.8% notes due 2044 widened 5 bps to 215 bps bid over the day.

The company sold $500 million of the bonds in an add-on on Tuesday at 210 bps over Treasuries.

The company originally sold the notes in a $2 billion tranche on June 3, 2014 at 140 bps over Treasuries.

AT&T is a Dallas-based telecommunications company.

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