Toronto-Dominion Bank, Inter Pipeline, Fairfax price bonds; Duke Energy notes firm; Ford eases

By Cristal Cody

Eureka Springs, Ark., Dec. 13 – U.S. investment-grade issuers stayed on the sidelines during Tuesday’s session, while Canadian companies brought deals in the U.S. and Canadian bond markets.

Toronto-Dominion Bank priced a $150 million add-on to its 2.5% series A four-year senior medium-term notes.

In Canada, Inter Pipeline Ltd. priced C$450 million of 3.484% 10-year senior medium-term notes at par.

Also, Fairfax Financial Holdings Ltd. sold C$450 million of 4.7% 10-year senior notes at 99.669 to yield 4.742% on Tuesday.

Market action in the U.S. high-grade bond market was mostly quiet ahead of the Federal Reserve’s policy announcement on Wednesday, according to informed sources.

Rates are widely expected to be raised with some analysts expecting a hike of 25 basis points.

In addition, Wednesday’s session is slated to be heavy with economic data reports.

Investment-grade bonds were mixed in secondary trading.

Duke Energy Corp.’s 2.65% senior notes due 2026 continue to tighten and are trading about 12 bps better since the U.S. presidential election.

Ford Motor Co.’s 5.291% senior notes due 2046 were seen early in the day about 2 bps weaker.

The Markit CDX North American Investment Grade index closed about ½ bp tighter at a spread of 67 bps on Tuesday.

TD Bank reopens

Toronto-Dominion Bank priced a $150 million add-on to its 2.5% series A four-year senior medium-term notes (Aa1/AA-/) at 100.23 to yield 2.439% on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The notes due Dec. 14, 2020 priced with a spread of 53 bps plus Treasuries.

TD Securities (USA) LLC was the bookrunner.

The bank originally issued $1.75 billion of the notes on Dec. 14, 2015 at 99.785 to yield 2.546% and a spread of Treasuries plus 87.5 bps. The total outstanding now is $1.9 billion.

The bank and financial services company is based in Toronto.

Inter Pipeline prices

Inter Pipeline priced C$450 million of 3.484% 10-year senior medium-term notes at par to yield a spread of 168 bps versus the interpolated Government of Canada bond curve, according to a company release and a spokesperson on Tuesday.

The notes (/BBB+/DBRS: BBB (high)) are due Dec. 16, 2026.

CIBC World Markets Inc., RBC Capital Markets LLC and TD Securities were the lead managers.

Inter Pipeline will use the proceeds of the offering to partially fund the acquisition of Canadian Natural Resources Ltd.’s 15% interest in the Cold Lake pipeline system and to repay existing bank debt.

Inter Pipeline is a petroleum transportation, natural gas liquids processor and bulk liquid storage business based in Calgary, Alta.

Fairfax sells C$450 million

Fairfax Financial Holdings sold C$450 million of 4.7% 10-year senior notes at 99.669 to yield 4.742% on Tuesday, according to a market source and a company news release.

The notes (Baa3/BBB-/DBRS: BBB) priced with a spread of 290 bps versus the interpolated Government of Canada bond curve.

RBC Dominion Securities Inc. and BMO Nesbitt Burns Inc. were the bookrunners.

The company intends to use the proceeds to refinance or repay outstanding debt or other corporate obligations of Fairfax and its subsidiaries and for general corporate purposes.

Fairfax Financial is a Toronto-based holding company for subsidiaries in the property and casualty insurance business.

Duke Energy better

Duke Energy’s 2.65% notes due 2026 firmed about 1 bp to head out at 106 bps bid on Tuesday, a market source said.

The company sold $1.5 billion of the 10-year notes (Baa1/BBB+/BBB+) on Aug. 9 at a spread of 115 bps plus Treasuries.

The diversified energy company is based in Charlotte, N.C.

Ford Motor eases

Ford Motor’s 5.291% notes due 2046 (Baa2//BBB) were seen about 2 bps wider earlier on Tuesday at 218 bps offered, according to a market source.

The company sold $1.3 billion of the notes on Dec. 5 at par with a spread of 220 bps over Treasuries.

The automaker is based in Dearborn, Mich.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.