American Express, Thomson Reuters, CMS Energy, American Airlines bring issues; Coach softens

By Cristal Cody

Eureka Springs, Ark., May 2 – New investment-grade deal volume on Monday included transactions from American Express Credit Corp., Thomson Reuters Corp. and CMS Energy Corp.

American Express Credit sold $1.75 billion of five-year senior medium-term notes.

Thomson Reuters priced $500 million of 10-year notes.

CMS Energy brought $300 million of 10-year senior notes during the session.

In addition, American Airlines, Inc. sold $828.7 million of series 2016-2 pass-through certificates in two parts.

Union Pacific Railroad Co. priced a $150.73 million offering of pass-through certificates.

Market sources expect the week’s primary action to be strong with about $30 billion of volume.

The Markit CDX North American Investment Grade series 23 index eased 1 basis point over the day to a spread of 78 bps.

In the secondary market, Coach Inc.’s 4.25% notes due 2026 widened 3 bps. S&P revised the company’s outlook to stable from negative.

Amex prices $1.75 billion

American Express Credit sold $1.75 billion of 2.25% five-year senior medium-term notes at 99.939 to yield 2.263% on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The series F notes (A2/A-/A) priced in line with guidance at a spread of 95 bps over Treasuries.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and BofA Merrill Lynch were the bookrunners.

The credit card services company is based in New York.

Thomson Reuters prices

Thomson Reuters sold $500 million of 3.35% 10-year notes (Baa2/BBB+/BBB+) at 99.57 to yield 3.401% on Monday, according to a market source and an FWP filing with the SEC.

The notes priced with a spread of 155 bps over Treasuries, on the tight side of guidance of Treasuries plus 160 bps, plus or minus 5 bps.

Citigroup, Goldman Sachs, BofA Merrill Lynch and Wells Fargo Securities, LLC were the bookrunners.

Proceeds will be used to repay the company’s $500 million principal amount of 0.875% notes maturing later this month.

Thomson Reuters is a media and information company based in New York City.

CMS Energy prices $300 million

CMS Energy sold $300 million of 3% 10-year senior notes on Monday at 99.622 to yield 3.044%, according to an FWP filing with the SEC.

The notes (Baa2/BBB/BBB) priced with a spread of 120 bps over Treasuries.

Barclays, Goldman Sachs, J.P. Morgan Securities LLC, RBC Capital Markets, LLC and Wells Fargo were the bookrunners.

Proceeds from the deal will be used to redeem the company’s $250 million outstanding of 6.55% senior notes due 2017 and for general corporate purposes.

CMS Energy is a Jackson, Mich.-based electric and gas company.

American prices $828.7 million

American Airlines sold $828.7 million of series 2016-2 pass-through certificates in two parts on Monday, according to a market source.

The $261.3 million offering of 3.2% class A certificates, which have a final expected distribution date of June 15, 2028, priced at a spread of 133.5 bps over Treasuries.

American Airlines also sold $567.4 million of 3.65% class AA certificates with a final expected distribution date of June 15, 2028 at Treasuries plus 178.5 bps.

Citigroup, Goldman Sachs and Morgan Stanley & Co. LLC were active bookrunners.

Proceeds will be used to acquire equipment notes that will be issued by the company.

The commercial airline, which is a subsidiary of AMR Corp., is based in Fort Worth, Texas.

Union Pacific Railroad prices

Union Pacific Railroad tapped the market on Monday with a $150.73 million offering of 2.495% series 2016-1 pass-through certificates due Nov. 9, 2029 (Aa2/AA/), according to a market source.

The certificates priced with a spread of 63 bps plus Treasuries.

BofA Merrill Lynch, Citigroup and Wells Fargo were the bookrunners.

Proceeds from the deal will be used to purchase equipment trust certificates, which will be issued by the company to finance the acquisition of new locomotives.

Union Pacific Railroad is a subsidiary of Omaha-based rail transport company Union Pacific Corp.

Coach softens

Coach’s 4.25% notes due 2026 widened 3 bps to 229 bps bid in secondary trading on Monday, according to a market source.

Coach sold $600 million of the notes (Baa2/BBB-/BBB) on Feb. 23, 2015 at Treasuries plus 225 bps.

The luxury leather goods company is based in New York.

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