Reinsurance Group, Pernod Ricard, Yara, FLIR price; Dollar General flat; Norfolk Southern firms

By Cristal Cody

Eureka Springs, Ark., June 1 – Investment-grade primary action stayed strong on Wednesday with primary volume now forecasted in the $35 billion range for the week, according to market sources.

Reinsurance Group of America, Inc. sold $800 million in two tranches on Wednesday, including senior notes and subordinated debentures.

Pernod Ricard SA raised $600 million in an offering of 10-year notes.

Yara International ASA priced a $500 million sale of 10-year notes.

FLIR Systems, Inc. brought $425 million of five-year notes to market.

Alexandria Real Estate Equities, Inc. priced $350 million of 10-year notes.

Also, Kommunalbanken AS priced a $200 million add-on to five-year floating-rate notes on Wednesday.

In addition, the Canadian market saw two issuers tap the market on Wednesday.

TransCanada Pipelines Ltd. sold $1 billion in a reopening of its seven-year senior debentures and issuance of new 30-year senior debentures.

Toronto-Dominion Bank priced C$1.5 billion of five-year covered bonds.

In the secondary market, Dollar General Corp.’s 4.15% notes due 2025 traded flat on the day after Moody’s Investors Service raised the company’s senior rating to Baa2 from Baa3.

Norfolk Southern Corp.’s 2.9% notes due 2026 priced on Tuesday traded 2 basis points better than issuance earlier in the day.

Walgreens Boots Alliance Inc.’s 3.45% notes due 2026 were unchanged.

The Markit CDX North American Investment Grade index ended the day about 1 bp wider at a spread of 78 bps.

Reinsurance Group prices

Reinsurance Group of America sold $800 million in two tranches on Wednesday, according to a market source and a company release.

Reinsurance Group priced $400 million of 3.95% 10-year senior notes at 99.996 and a spread of 210 bps over Treasuries. The notes were guided to price at Treasuries plus 215 bps, plus or minus 5 bps.

The company also sold $400 million of 5.75% 40-year fixed-to-floating-rate subordinated debentures at $25 per debenture. The debentures were talked in the 5.75% to 5.875% area.

The debentures will reset to Libor plus 404 bps on June 15, 2026 if not redeemed.

Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch, U.S. Bancorp Investments, Inc. and RBC Capital Markets, LLC were the bookrunners for the senior notes offering.

JPMorgan, BofA Merrill Lynch, Wells Fargo Securities, LLC and HSBC Securities (USA) Inc. were the bookrunners for the sale of the subordinated debentures.

The company plans to use the proceeds to repay upon maturity $300 million outstanding of 5.625% senior notes due in March 2017 and for general corporate purposes.

Reinsurance Group of America is a St. Louis-based provider of life reinsurance.

Pernod Ricard prices

Pernod Ricard sold $600 million of 3.25% 10-year notes at a 147 bps spread, compared to talk of 150 bps over Treasuries, plus or minus 3 bps, on Wednesday, a market source said.

The notes (Baa2/BBB-/BBB-) are due June 8, 2026.

BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and JPMorgan were the lead managers.

Pernod Ricard is a Paris-based wine and spirits producer.

Yara prints $500 million

Yara International sold $500 million of 3.8% 10-year notes (Baa2/BBB/) at 200 bps over Treasuries on Wednesday, according to a market source.

The notes were talked to price at Treasuries plus 205 bps, plus or minus 5 bps.

Barclays, Citigroup, Deutsche Bank Securities Inc. and JPMorgan were the lead managers.

Yara International is a chemical company based in Oslo.

FLIR sells $425 million

FLIR Systems priced $425 million of 3.125% five-year notes with a spread of 175 bps over Treasuries on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at 99.931 to yield 3.14%.

BofA Merrill Lynch and JPMorgan were the bookrunners.

Proceeds will be used for debt repayment.

The sensor and thermal imaging company is based in Wilsonville, Ore.

Alexandria Real Estate prices

Alexandria Real Estate Equities priced $350 million of 3.95% senior notes due 2027 with a spread of 215 bps over Treasuries on Wednesday, according to a market source and an FWP filing with the SEC.

The issue was talked at Treasuries plus 220 bps, plus or minus 5 bps.

The notes (Baa2/BBB-/) priced at 99.601 to yield 3.996%.

RBC, Barclays, BBVA Securities Inc., Mizuho Securities USA Inc., Capital One Securities, Inc., Goldman Sachs, MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and TD Securities (USA) LLC were the bookrunners.

The notes are guaranteed by Alexandria Real Estate Equities LP.

Proceeds will be used to reduce the outstanding balance of an unsecured senior line of credit.

The real estate investment trust for life science labs is based in Pasadena, Calif.

Kommunalbanken reopens

Kommunalbanken priced a $200 million add-on to its five-year floating-rate notes on Wednesday on top of guidance at Libor plus 35 bps, according to a market source.

The notes (Aaa/AAA/) are due Sept. 8, 2021.

Citigroup, HSBC and TD Securities were the bookrunners.

Kommunalbanken originally sold $300 million of the notes on Aug. 29, 2014 at Libor plus 13 bps. The total outstanding is $500 million.

Kommunalbanken is an Oslo-based government-funded lender.

Dollar General flat

Dollar General’s 4.15% notes due 2025 traded flat at 152 bps bid on Wednesday in the secondary market, a source said.

Dollar General priced $500 million of the notes (Baa2/BBB) on Oct. 15, 2015 at Treasuries plus 215 bps.

The discount retailer is based in Goodlettsville, Tenn.

Norfolk Southern firms

Norfolk Southern’s 2.9% notes due 2026 were seen early in the day at 108 bps offered in the secondary market, a source said.

Norfolk Southern sold $600 million of the 10-year notes (Baa1/BBB+/) on Tuesday at a spread of 110 bps over Treasuries.

The railroad operator is based in Norfolk, Va.

Walgreens stable

Walgreens’ 3.45% notes due 2026 were unchanged at 161 bps offered early Wednesday, a market source said.

The company sold $1.9 billion of the notes (Baa2/BBB/BBB) on Thursday at Treasuries plus 165 bps.

Walgreens is a Deerfield, Ill.-based drugstore chain.

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