Westpac, Fidelity National Information, Spirit Realty, Wells Fargo price; bonds improve

By Cristal Cody

Eureka Springs, Ark., Aug. 11 – High-grade bond pricing action continued on Thursday with more than $8 billion of securities sold during the session.

Westpac Banking Corp. priced $5 billion of fixed- and floating-rate notes in five tranches.

Fidelity National Information Services, Inc. sold $2.5 billion in three tranches of senior notes, including the addition of a 30-year tranche.

Wells Fargo & Co. returned to the primary market to price a $600 million add-on to its five-year senior floating-rate notes.

Colorado Interstate Gas Co., LLC raised $375 million in an offering of 10-year senior notes.

Spirit Realty, LP brought $300 million of 10-year senior notes in a private Rule 144A and Regulation S-eligible deal on Thursday.

The Markit CDX North American Investment Grade index closed the day 1 basis point tighter at a spread of 71 bps.

Bunge Ltd. Finance Corp.’s 3.25% senior notes due 2026 that priced on Wednesday traded 5 bps better in the secondary market earlier in the day.

Black Hills Corp.’s 3.15% senior notes due 2027 were seen trading 5 bps tighter than issuance.

Westpac Banking prices

Westpac Banking priced $5 billion of fixed- and floating-rate notes in five tranches on Thursday, according to a market source.

Westpac Banking sold $500 million of three-year floating-rate notes at Libor plus 56 bps.

The company placed $1.5 billion of 1.6% three-year notes at a spread of 75 bps over Treasuries.

Westpac Banking priced $500 million of five-year floating-rate notes at Libor plus 86 bps.

The company sold $1.5 billion of 2% five-year notes with a spread of 87.5 bps over Treasuries.

The final $1 billion tranche of 2.7% 10-year notes priced at 115 bps over Treasuries.

BofA Merrill Lynch, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds will be used for general corporate purposes, according to a 424B5 filed with the Securities and Exchange Commission.

The Australian bank and financial services provider is based in Sydney.

Fidelity sells $2.5 billion

Fidelity National Information Services sold $2.5 billion in three tranches of senior notes (Baa3/BBB/BBB) on Thursday, according to a market source.

The company sold $750 million of 2.25% five-year notes at 110 bps over Treasuries. The notes priced on the tight side of guidance of 115 bps area.

Fidelity National Information sold $1.25 billion of 3% 10-year notes at 155 bps over Treasuries. The notes were guided to price in the 160 bps area over Treasuries.

In the final tranche, which was added on, the company sold $500 million of 4.5% 30-year notes at 230 bps over Treasuries. The notes tightened from talk in the 235 bps area over Treasuries.

Citigroup, J.P. Morgan Securities LLC, MUFG, U.S. Bancorp Investments Inc., BofA Merrill Lynch, HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC were the bookrunners.

Proceeds will be used to repay all or a portion of the $2.2 billion outstanding on the company’s revolving credit facility, with any remaining proceeds to be used for general corporate purposes, according to a 424B5 filing with the SEC.

The financial services technology company is based in Jacksonville, Fla.

Wells Fargo prices add-on

Wells Fargo priced a $600 million add-on to its five-year senior floating-rate notes at 100.604 with a coupon of Libor plus 102.5 bps on Thursday, according to an FWP filing with the SEC.

The notes due July 26, 2021 (A2/A/AA-) originally priced on July 18 in a $600 million offering at par to yield Libor plus 102.5 bps. The total outstanding is $1.2 billion.

Wells Fargo Securities was the bookrunner.

The retail, commercial and corporate banking services provider is based in San Francisco.

Colorado Interstate prints

Colorado Interstate Gas priced $375 million of 4.15% 10-year senior notes with a spread of 260 bps over Treasuries on Thursday, a market source said.

The notes (Baa3/BBB-/BBB-) tightened from initial price thoughts in the 275 bps area.

JPMorgan and Mizuho Securities USA Inc. were the lead managers for the deal.

Proceeds will be used to repay intercompany debt.

Colorado Interstate Gas is a Houston-based natural gas producer and subsidiary of midstream energy company Kinder Morgan Inc.

Spirit Realty sells notes

Spirit Realty Capital, Inc.’s operating partnership, Spirit Realty, sold $300 million of 4.4% 10-year senior notes (Baa3/BBB-/BBB-) in a private Rule 144A and Regulation S-eligible offering on Thursday, according to a market source and a company press release.

The notes due Sept. 15, 2026 priced at 99.378 and with a spread of 295 bps over Treasuries. The notes were talked at the 300 bps area, plus or minus 5 bps, over Treasuries.

JPMorgan and Wells Fargo Securities were the lead managers.

The notes are guaranteed by Spirit Realty Capital.

Proceeds will be used to initially repay amounts outstanding under Spirit Realty’s term loan facility. Any remaining proceeds will be used to reduce amounts outstanding under the company’s revolving credit facility and for general corporate purposes.

Spirit Realty Capital is a Dallas-based net-lease real estate investment trust.

Bunge tightens

Bunge Ltd. Finance’s 3.25% notes due 2026 traded better at 170 bps offered early Thursday, according to a market source.

Bunge Ltd. Finance priced $700 million of the notes (Baa2/BBB/BBB) on Wednesday at a spread of 175 bps over Treasuries.

The agribusiness and food company is based in White Plains, N.Y.

Black Hills firms

Black Hills’ 3.15% senior notes due 2027 were quoted 5 bps tighter at 160 bps offered in early secondary trading, according to a market source.

The company priced $400 million of the notes (Baa1/BBB/BBB+) on Wednesday at a spread of 165 bps over Treasuries.

The energy company is based in Rapid City, S.D.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.