Handelsbanken, Marriott, U.S. Bancorp, Boston Properties price; DowDuPont, Takeda eyed

By Cristal Cody

Tupelo, Miss., Nov. 13 – Investment-grade issuers priced more than $4 billion of bonds in the primary market on Tuesday.

Svenska Handelsbanken AB sold $1.4 billion of five-year notes.

Marriott International Inc. placed $1.2 billion of senior notes in three tranches.

Boston Properties LP brought $1 billion of 10-year green senior notes.

U.S. Bancorp priced $750 million of seven-year medium-term senior notes.

Also on Tuesday, DowDuPont Inc. held fixed-income investor calls for eight tranches of notes expected to total in the $12 billion area.

With DowDuPont’s offering and a potential dollar-denominated deal from Takeda Pharmaceutical Co., Ltd. forthcoming, some sources are estimating as much as $45 billion of supply for the week.

About $25 billion to $30 billion of investment-grade bond issuance is expected on average, according to syndicate sources.

The Markit CDX North American Investment Grade 31 index eased about 3 basis points from Friday’s levels following the Veterans Day holiday on Monday to a spread of 69 bps.

Svenska Handelsbanken prices

Svenska Handelsbanken priced $1.4 billion of 3.9% five-year notes (Aa2/AA-/AA) at a spread of 95 bps over Treasuries on Tuesday, according to a market source.

The notes were initially talked to price in the 105 bps to 110 bps over Treasuries spread area.

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

The Swedish bank is based in Stockholm.

Marriott sells three tranches

Marriott International priced $1.2 billion of senior notes (Baa2/BBB/) in three tranches on Tuesday, according to a market source.

The company sold $550 million of two-year floating-rate notes at Libor plus 60 bps, better than initial talk in the Libor plus 70 bps area.

Marriott priced $350 million of 4.15% five-year notes with a spread of 120 bps over Treasuries. Initial price talk on the issue was in the Treasuries plus 120 bps to 125 bps area.

A $300 million tranche of 4.65% 10-year notes was placed on the tight side of guidance at a Treasuries plus 155 bps spread. The notes were initially talked to price in the Treasuries plus 155 bps to 160 bps spread area.

J.P. Morgan Securities was the bookrunner.

The lodging company is based in Bethesda, Md.

Boston Properties sells notes

Boston Properties sold $1 billion of 4.5% 10-year green senior notes at 99.641 to yield 4.545% on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The notes (Baa1/A-/BBB+) priced with a spread of 140 bps over Treasuries.

Bookrunners were Deutsche Bank Securities Inc., J.P. Morgan Securities, BofA Merrill Lynch, Morgan Stanley, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Jefferies LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.

Boston-based Boston Properties is the operating subsidiary of real estate investment trust Boston Properties, Inc.

U.S. Bancorp prices notes

U.S. Bancorp sold $750 million of 3.95% seven-year medium-term senior notes at a spread of 90 bps over Treasuries on Tuesday, according to an FWP filing with the SEC.

The notes (A1/A+/AA-) priced at 99.909 to yield 3.965%.

U.S. Bancorp Investments, Morgan Stanley and RBC Capital Markets, LLC were the bookrunners.

Minneapolis-based U.S. Bancorp is a holding company and parent of U.S. Bank NA.

DowDuPont on tap

DowDuPont (Baa1/A-/BBB+) held fixed-income investor calls on Tuesday for eight tranches of notes expected to total in the $12 billion area, according to a market source and a 424B5 filing with the Securities and Exchange Commission.

The deal includes two-year and five-year floating-rate notes, as well as fixed-rate tranches due 2020, 2023, 2025, 2028, 2038 and 2048.

Pricing is expected to follow the investor calls.

Credit Suisse Securities (USA) LLC, Goldman Sachs and J.P. Morgan Securities are the bookrunners.

Wilmington, Del.-based DowDuPont is expected to become a stand-alone company focused on specialty products following the spin-offs of its agriculture and materials science businesses.

Takeda continues roadshow

Takeda Pharmaceutical (A2/A-/) is expected to price about $14 billion of euro-denominated senior notes and possible dollar-denominated notes, according to market sources.

The company is holding a roadshow for the Rule 144A and Regulation S offering through Wednesday.

The fixed-income investor meetings and calls started in Europe on Monday.

J.P. Morgan Securities, SMBC Nikko Securities America, Inc., Morgan Stanley, Barclays, BNP Paribas Securities Corp. and HSBC Bank plc are the active bookrunners.

The euro offering is expected to include two-year floating-rate notes, two-year fixed-rate notes, eight-year fixed-rate notes and 12-year fixed-rate notes.

A possible dollar-denominated transaction may follow.

The pharmaceutical company is based in Osaka, Japan.

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