Telefonica, Disney, Scotiabank, Telus, Brixmor price; Chevron mixed; Discovery softens

By Cristal Cody

Tupelo, Miss., March 1 – The tone in the high-grade market stayed strong on Wednesday with more than $9 billion of bonds priced.

Spanish telecommunications company Telefonica Emisiones SAU came to the primary market with $3.5 billion of senior notes in two parts.

Walt Disney Co. sold $2 billion of medium-term notes in four tranches.

Bank of Nova Scotia priced $2 billion of five-year fixed- and floating-rate senior notes.

Air Lease Corp. sold $500 million of 10-year senior notes during the session.

Telus Corp. priced $500 million of long 10-year senior notes.

Mercury General Corp. placed $375 million of 10-year senior notes.

Brixmor Operating Partnership LP sold $400 million of 10-year senior notes.

The day’s volume brings week-to-date issuance to about $35 billion, well above market forecasts of about $20 billion to $25 billion of supply for the entire week.

The Markit CDX North American Investment Grade index tightened 2 basis points on Wednesday to end at a spread of 60 bps.

In the secondary market, Chevron Corp.’s $4 billion seven-part offering of senior notes (Aa2/AA-/) priced on Tuesday were mixed.

Discovery Communications, LLC’s $650 million of senior notes (Baa3/BBB-/BBB-) priced in two parts on Tuesday were softer in secondary trading.

Telefonica Emisiones prices

Telefonica Emisiones sold $3.5 billion of senior notes (Baa3/BBB/) in two tranches on Wednesday, according to a market source.

The company priced $1.5 billion of 4.103% 10-year notes at a spread of Treasuries plus 165 bps.

Telefonica placed $2 billion of 5.213% 30-year notes at a Treasuries plus 215 bps spread.

Both tranches priced on the tight side of guidance.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., BBVA Securities Inc., BNP Paribas Securities Corp. and Santander Investment Securities Inc. were the bookrunners.

The notes are guaranteed by Telefonica SA.

The notes may be redeemed at the greater of par plus interest and a make-whole call, according to a 424B5 filing with the Securities and Exchange Commission.

Proceeds will be deposited with Telefonica SA to be used for general corporate purposes.

The telecommunications group is based in Madrid.

Walt Disney raises $2 billion

Walt Disney sold $2 billion of series G medium-term notes (A2/A/A) in four tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The company priced $600 million of three-year floating-rate notes at par to yield Libor plus 13 bps.

Walt Disney sold $400 million of 1.95% three-year fixed-rate notes at 99.974 and a spread of Treasuries plus 40 bps.

The company sold $500 million of five-year floating-rate notes at par to yield Libor plus 39 bps.

Walt Disney brought a $500 million tranche of 2.45% five-year fixed-rate notes to market at 99.832 with a spread of 50 bps over Treasuries.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp. and SunTrust Robinson Humphrey, Inc. were the bookrunners.

Proceeds will be used for general corporate purposes.

Walt Disney is a Burbank, Calif.-based entertainment and media company.

Scotiabank prints $2 billion

Bank of Nova Scotia priced $2 billion of five-year fixed- and floating-rate senior notes (Aa3/A+/AA-) on Wednesday, according to a market source.

The company sold $500 million of five-year floating-rate notes at Libor plus 64 bps.

Scotiabank priced $1.5 billion of 2.7% five-year fixed-rate notes at a spread of Treasuries plus 75 bps.

The bookrunners were BofA Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc. and Wells Fargo Securities LLC.

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

The bank is based in Toronto.

Telus prices $500 million

Telus priced $500 million of 3.7% long 10-year senior notes on Wednesday at 99.895 to yield 3.712%, according to a market source and an FWP filing with the SEC.

The notes due Sept. 15, 2027 (Baa1/BBB+/BBB+) priced in line with guidance at a spread of 125 bps over Treasuries.

BofA Merrill Lynch, RBC Capital Markets, LLC, BMO Capital Markets Corp. and CIBC World Markets Corp. were the bookrunners.

Proceeds will be used to repay at maturity Telus' C$465 million outstanding of series CD notes due March 2017, to repay a portion of outstanding commercial paper and for general corporate purposes.

Telus is a Vancouver, B.C.-based telecommunications company.

Air Lease sells $500 million

Air Lease sold $500 million of 3.625% 10-year senior notes at 98.241 to yield 3.837% on Wednesday, according to a market source and an FWP filing with the SEC.

The notes due April 1, 2027 (/BBB/BBB) priced at a spread of 137 bps over Treasuries, on the tight side of talk at the Treasuries plus 140 bps area, plus or minus 3 bps.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC were the bookrunners.

The Los Angeles aircraft leasing company will use the proceeds for general corporate purposes.

Brixmor brings $400 million

Brixmor Operating Partnership sold $400 million of 3.9% 10-year senior notes (Baa3/BBB-/BBB-) on Wednesday at 99.009 to yield 4.021%, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes due March 15, 2027 priced with a spread of Treasuries plus 155 bps, on the tight side of guidance.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, U.S. Bancorp Investments Inc., BMO Capital Markets Corp., Mizuho Securities USA Inc., RBC Capital Markets, LLC and Scotia Capital (USA) Inc. were the bookrunners.

Proceeds will be used to repay outstanding debt under the company’s $1.25 billion revolving credit facility and for general corporate purposes.

New York City-based Brixmor is the operating partnership through which Brixmor Property Group Inc. operates and holds real estate assets.

Mercury General sells notes

Mercury General sold $375 million of 4.4% 10-year senior notes (Baa2//BBB+) on Wednesday at a spread of 195 bps over Treasuries, according to an FWP filing with the SEC.

The notes due March 15, 2027 priced at 99.847 to yield 4.419%.

BofA Merrill Lynch and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to repay the balance of the company’s debt and for general corporate purposes.

Mercury General is a fire, marine and casualty insurance company based in Los Angeles.

Chevron mixed

Chevron’s 1.686% notes due Feb. 28, 2019 headed out flat at par after trading early in the session at 100.08 on Wednesday, according to a market source.

The company priced $550 million of the two-year notes on Tuesday at par to yield a spread of Treasuries plus 45 bps.

Chevron’s 2.895% notes due March 3, 2024 were better going out at 99.79 from where the notes traded at 99.62 over the morning.

The company priced $1 billion of the seven-year notes on Tuesday at par to yield a spread of 70 bps over Treasuries.

The petroleum, chemical, mining, power and energy company is based in San Ramon, Calif.

Discovery softens

Discovery Communications’ 3.8% notes due March 13, 2024 traded softer than issuance on Wednesday at 99.45 in the secondary market, a source said.

The company priced $450 million of the notes on Tuesday at 99.811 to yield 3.831% and a spread of Treasuries plus 165 bps.

Discovery Communications’ reopened 4.9% notes due March 11, 2026 traded mostly unchanged over the day but weaker than issuance at 104.50.

Discovery Communications priced a $200 million add-on to the notes on Tuesday at 105.038 to yield 4.206%, or a spread of 185 bps over Treasuries.

The company originally sold $500 million of the notes on March 8, 2016 at 99.633 to yield 4.947% and a spread of 312.5 bps over Treasuries.

The global media company is based in Silver Spring, Md.

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