IBM, Tech Data sell notes; Quebec, Nordic Bank price; AT&T tightens; Time Warner eases

By Cristal Cody

Eureka Springs, Ark., Jan. 24 – Nearly $8 billion of bonds priced on Tuesday from high-grade corporate and SSA issuers.

International Business Machines Corp. came with a $2.75 billion four-part offering of senior notes.

Tech Data Corp. sold $1 billion of senior notes in two tranches.

Also, Jackson National Life Insurance Co. priced a $900 million two-part offering of notes.

In other issuance, Nordic Investment Bank priced an upsized $1.25 billion of five-year global notes.

Quebec tapped the dollar market with a $2 billion offering of five-year global notes during the session.

In other activity, Guardian Life Insurance Co. of America announced on Tuesday that it closed on its $350 million private Rule 144A- and Regulation S-eligible offering of 60-year surplus notes.

The Markit CDX North American Investment Grade index eased about 1 basis point to end at a spread of 65 bps.

In the secondary market, bonds from AT&T Inc. and Time Warner Inc. were mixed.

AT&T announced plans in October to acquire Time Warner in an $85.4 billion cash and stock deal expected to close before the end of 2017.

AT&T’s 4.125% notes due 2026 traded about 5 bps tighter on Tuesday.

Time Warner’s 2.95% notes due 2026 softened about 3 bps.

IBM prices $2.75 billion

International Business Machines priced a $2.75 billion four-part offering of senior notes (Aa3/AA-/A+) on Tuesday, according to a market source.

IBM sold $500 million of three-year floating-rate notes at Libor plus 23 bps.

The company priced $750 million of 1.9% three-year fixed-rate notes at a spread of Treasuries plus 45 bps.

In the five-year tranche, IBM sold $1 billion of 2.5% notes at a Treasuries plus 60 bps spread.

The final tranche of $500 million of 3.3% 10-year notes priced with a spread of 90 bps over Treasuries.

BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc. and RBC Capital Markets LLC were the bookrunners.

Proceeds will be used for general corporate purposes, according to a 424B3 filing with the Securities and Exchange Commission.

The information technology and computer company is based in Armonk, N.Y.

Jackson National sells notes

Jackson National Life Insurance priced $900 million of notes (A1/AA/AA-) in two tranches on Tuesday, according to a market source.

The company sold $400 million of 2.2% three-year notes with a spread of 75 bps over Treasuries.

Jackson National Life priced $500 million of 3.25% seven-year notes at Treasuries plus 100 bps.

Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC were the lead managers.

The Lansing, Mich.-based investment company provides annuities and fixed income products.

NIB brings $1.25 billion

Nordic Investment Bank (Aa2/AA-) priced an upsized $1.25 billion of 2.125% global notes due Feb. 1, 2022 at 99.939 and a spread of 23.5 bps over Treasuries on Tuesday, according to a market source and an FWP filing with the SEC.

The notes (Aaa/AAA/) were initially talked to price in the mid-swaps plus 19 bps area. The deal was upsized from $1 billion.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC and Toronto-Dominion Bank were the lead managers.

Nordic Investment Bank is an international financial institution owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden.

Quebec places $2 billion

The Province of Quebec (Aa2/A+/AA-) priced a $2 billion dollar offering of 2.375% global notes due Jan. 31, 2022 on Tuesday at a spread of 49.15 bps over Treasuries, or mid-swaps plus 43 bps, according to a market source and an FWP filing with the SEC.

The series QQ notes (Aa2/A+/AA-) priced at 99.911 to yield 2.394%.

The notes were talked to price in the mid-swaps plus 46 bps area.

BMO Capital Markets Corp., Deutsche Bank Securities Inc., BofA Merrill Lynch and Scotia Capital (USA) Inc. were the lead managers.

Proceeds will be added to Quebec’s consolidated revenue fund and applied to general expenses or advanced to the financing fund of Quebec as permitted by law.

Tech Data prices $1 billion

Tech Data sold $1 billion of senior notes (Baa3/BBB-/) in two tranches on Tuesday, according to a market source and an FWP filing with the SEC.

The $500 million tranche of 3.7% five-year notes priced at 99.848 to yield 3.773% and a spread of Treasuries plus 180 bps.

Tech Data sold $500 million of 4.95% 10-year notes at 99.833 to yield 4.971%. The notes priced with a spread of 250 bps over Treasuries.

Both tranches priced on the tight side of guidance.

The bookrunners for the offering were BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.

Proceeds will be used to purchase all the shares of AVT Technology Solutions LLC and TS Divestco BV and for general corporate purposes.

Based in Clearwater, Fla., Tech Data is a technology products distribution company.

Guardian Life sells bonds

Guardian Life Insurance announced on Tuesday that it closed on a $350 million private Rule 144A- and Regulation S-eligible offering of 4.85% 60-year surplus notes (A1/AA-/AA-).

The notes due Jan. 24, 2077 priced on Jan. 17 at a spread of 195 bps over Treasuries, on the tight side of guidance, according to a market source.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds from the deal will be used for general corporate purposes.

New York City-based Guardian Life Insurance provides life insurance, disability income insurance, annuities and investments to dental and vision insurance and employee benefits.

AT&T firms

AT&T’s 4.125% notes due 2026 improved about 5 bps in secondary trading on Tuesday to head out at 157 bps bid, according to a market source.

AT&T (Baa1/BBB+/A-) priced a $900 million add-on to the bonds on May 3 at Treasuries plus 150 bps. The notes originally were sold on Jan. 29, 2016 in a $1.5 billion offering at 195 bps over Treasuries.

The telecommunications company is based in Dallas.

Time Warner eases

Time Warner’s 2.95% notes due 2026 softened about 3 bps during the session to 143 bps bid, a market source said.

Time Warner (Baa2/BBB/BBB+) sold $800 million of the notes on May 5 at a spread of 135 bps over Treasuries.

The media and entertainment company is based in New York.

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