Cameron, MUFG, Swedish Export price; Steel Dynamics eyes primary; high-grade inflows decline

By Cristal Cody

Tupelo, Miss., Dec. 5 – Investment-grade supply on Thursday included a $3.02 billion four-part offering of senior secured notes from Cameron LNG LLC that priced tighter than guidance.

During the session, MUFG Union Bank, NA also sold $1 billion of senior notes in two tranches.

In other supply, Swedish Export Credit Corp. priced $500 million of four-year global notes on top of guidance.

Meanwhile on Thursday, Steel Dynamics Inc. (Baa3/BBB-/BBB) held fixed income investor calls for a possible deal, a source said.

BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Staley & Co. LLC are the arrangers.

Steel Dynamics is a Fort Wayne, Ind.-based steel producer and metal recycler.

High-grade issuers have priced more than $15 billion of bonds week to date, in line with the $15 billion to $20 billion of volume forecast by syndicate sources.

Corporate investment-grade funds inflows declined to $2.23 billion for the week ended Wednesday from $4.55 billion in the previous week and $5.19 billion in the prior week, according to Lipper US Fund Flows on Thursday.

The Markit CDX North American Investment Grade 33 index closed the day mostly unchanged at a spread of 50 basis points.

Cameron prices $3.02 billion

Cameron LNG priced $3.02 billion of senior secured notes (A3/A-/A-) in four tranches in the offering on Thursday, according to a market source.

An $800 million tranche of 2.902% bullet bonds due July 15, 2031 priced at a spread of Treasuries plus 110 bps, compared to guidance in the 120 bps area.

The issuer sold $820 million of 3.302% bullet bonds due Jan. 15, 2035 with a Treasuries plus 150 bps spread. The notes were guided to print with a spread in the 160 bps over Treasuries area.

A $900 million tranche of 3.402% bullet bonds due Jan. 15, 2039 priced at a spread of 145 bps over Treasuries, tighter than guidance in the 155 bps spread area.

Finally, the company sold $500 million of 3.701% senior secured amortizing bonds due Jan. 15, 2038 with a Treasuries plus 160 bps spread. The notes have a 15-year weighted average life and were guided to print in the 170 bps spread area.

Citigroup Global Markets Inc., J.P. Morgan Securities and Mizuho Securities USA Inc. were the bookrunners.

Houston-based Cameron LNG is an entity owned by Sempra Energy, Total SA, Mitsui & Co., Ltd., Mitsubishi Corp. and Nippon Kabushiki Kaisha.

MUFG raises $1 billion

MUFG Union Bank priced $1 billion of senior notes (A2/A/) in two tranches on Thursday, according to a market source.

The bank sold $300 million of floating-rate notes due Dec. 9, 2022 at SOFR plus 71 bps.

A $700 million tranche of 2.1% notes three-year notes priced at a spread of 50 bps over Treasuries.

MUFG and Morgan Stanley were the bookrunners.

The subsidiary of Mitsubishi UFJ Financial Group, Inc. is based in New York.

Swedish Export sells notes

Swedish Export Credit priced $500 million of 1.75% global notes due Dec. 12, 2023 (Aa1/AA+/) on Thursday at mid-swaps plus 18 bps, or a spread of Treasuries plus 15.7 bps, according to a market source.

Initial price talk was in the mid-swaps plus 18 bps area.

BofA Securities, Deutsche Bank Securities Inc. and J.P. Morgan Securities were the bookrunners.

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

New issues firm

In the secondary market, Skandinaviska Enskilda Banken AB’s $1.75 billion two-part offering of senior notes (Aa2/A+/AA-) priced on Wednesday traded about 3 bps to 6 bps tighter after issuance, a source said.

The Stockholm-based Swedish financial group’s 2.2% notes due Dec. 12, 2022 tightened 3 bps.

Skandinaviska Enskilda Banken sold $1.25 billion of the three-year fixed-rate notes at a spread of 62 bps over Treasuries.

Charter Communications, Inc.’s $1.3 billion add-on to its 4.8% split-rated guaranteed senior secured notes due March 1, 2050 (Ba1/BBB-/BBB-) that priced on Monday remains better than issuance, according to market sources.

The notes traded at 103.24 at the start of Thursday’s session and improved late afternoon to 103.52.

The issue was quoted in the previous session at a 236 bps bid spread.

Subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. priced the notes at 101.964 to yield 4.677% and a spread of Treasuries plus 240 bps.

Initial talk was in the Treasuries plus 255 bps area.

The Stamford, Conn.-based broadband communications company originally sold the notes in a $1.5 billion offering on Oct. 15 at 99.436 to yield 4.836% and a Treasuries plus 260 bps spread. The total outstanding is $2.8 billion.

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