Daimler, Canadian Railway, Swedish Export, BNG price; new bonds mixed in secondary market

By Cristal Cody

Tupelo, Miss., Oct. 31 – Deal volume on Wednesday included new Yankee issuance.

Daimler Finance North America LLC sold $1.75 billion of senior notes in two tranches.

Canadian National Railway Co. priced $650 million of long 30-year senior notes.

In the SSA space, Swedish Export Credit Corp. brought $1 billion of three-year notes to the primary market.

Also, Bank Nederlandse Gemeenten NV sold $500 million of three-year dollar bonds in a Rule 144A and Regulation S deal.

In other activity on Wednesday, Duke Energy Carolinas LLC (Aa2/A/) held a roadshow and fixed-income investor calls for a benchmark-sized dollar-denominated offering of green first and refunding mortgage bonds, according to a market source.

BofA Merrill Lynch, BNP Paribas Securities Corp., MUFG, Scotia Capital (USA) Inc. and TD Securities (USA) LLC are the arrangers.

Investment-grade issuers priced about $10 billion of bonds on Monday and Tuesday.

About $15 billion to $20 billion of supply was forecast by market sources for the week.

New bonds priced this week were mixed in secondary trading, according to market sources.

Charles Schwab Corp.’s $1.1 billion of senior notes (A2/A/A) sold in two tranches on Monday were seen trading about 1 basis point to 3 bps softer.

The company sold $500 million of 3.55% notes due Feb. 1, 2024 at a Treasuries plus 67 bps spread and a $600 million tranche of 4% notes due Feb. 1, 2029 with a 97 bps spread over Treasuries.

Ryder System, Inc.’s notes improved about 3 bps in the secondary market.

Ryder sold $300 million of 3.875% medium-term notes due Dec. 1, 2023 (Baa1/BBB+/A-) on Tuesday at a spread of 95 bps over Treasuries.

The Markit CDX North American Investment Grade 31 index ended the day about 2 bps tighter at a spread of 68 bps.

Daimler prices $1.75 billion

Daimler Finance North America sold $1.75 billion of senior notes (A2/A/) in two tranches on Wednesday, according to a market source.

The company priced $500 million of three-year floating-rate notes at Libor plus 67 bps.

Daimler sold $1.25 billion of 3.75% three-year fixed-rate notes at a spread of 85 bps over Treasuries.

BofA Merrill Lynch, Barclays, Societe Generale and SMBC Nikko Securities America, Inc. were the bookrunners.

Daimler Finance is a Wilmington, Del.-based financing arm of Daimler North America Corp.

Canadian Railway sells notes

Canadian National Railway sold $650 million of 4.45% senior notes due Jan. 20, 2049 (A2/A/DBRS: A) at a spread of 105 bps over Treasuries on Wednesday, a market source said.

The notes were initially talked to price in the Treasuries plus 115 bps spread area.

BNP Paribas Securities, Citigroup Global Markets Inc. and Wells Fargo Securities LLC were the bookrunners.

The railway transportation company is based in Montreal.

Swedish Export sells $1 billion

Swedish Export Credit (Aa1/AA+/) placed $1 billion of 3.125% three-year global notes on Wednesday at 99.861 to yield 3.174%, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes due Nov. 8, 2021 priced on top of guidance at a spread of mid-swaps plus 6 bps, or Treasuries plus 24.4 bps.

Barclays, Credit Agricole Corporate and Investment Bank, and Deutsche Bank AG, London Branch and Merrill Lynch International were the bookrunners.

Swedish Export Credit is a Stockholm-based state-owned financial services company for the Swedish export industry.

BNG Bank places bonds

BNG Bank (Aaa/AAA/AA+) priced $500 million of 3.125% three-year sustainability bonds on Wednesday at a spread of mid-swaps plus 5 bps, or Treasuries plus 24 bps, according to market sources.

The notes were initially talked to price in the mid-swaps plus 6 bps area with guidance later firmed to the mid-swaps plus 5 bps area.

The final book size was more than $650 million.

BNP Paribas Securities, Citigroup Global Markets and TD Securities were the bookrunners of the Rule 144A and Regulation S offering.

The banking services company is based in The Hague.

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