Financial issuers price; Bacardi sells $2.6 billion; Kommunalbanken, Sabal plan deals

By Cristal Cody

Tupelo, Miss., April 24 – Several high-grade companies priced new bonds on Tuesday, while other issuers marketed offerings.

Royal Bank of Canada brought $3 billion of three-year senior medium-term fixed- and floating-rate notes in two tranches to the primary market on Tuesday.

Other financial issuance on Tuesday included $2 billion of notes in two tranches from U.S. Bank NA, an $850 million sale of 10-year medium-term senior notes from U.S. Bancorp and an $850 million offering of seven-year senior notes from SunTrust Banks, Inc.

Bacardi Ltd. launched and priced $2.6 billion of guaranteed notes in four tranches during the session.

Also on Tuesday, Harvest Operations Corp. sold $397.5 million of five-year senior notes.

Elsewhere, other high-grade issuers marketed bond deals on Tuesday.

Kommunalbanken plans to price $1 billion of long three-year notes in a “no-grow” deal on Wednesday, according to a market source. The notes were initially talked to price with a spread in the mid-swaps plus 5 basis points area.

Sabal Trail Transmission LLC held fixed-income investor calls during the session in advance of bringing an offering of senior notes (Baa1//BBB+) to the primary market, a source said.

About $25 billion to $30 billion of high-grade supply is forecast for the week, according to market sources.

The Markit CDX North American Investment Grade 30 index closed modestly softer on the day at a spread of 62 bps.

Royal Bank of Canada prices

Royal Bank of Canada priced $3 billion of three-year senior medium-term fixed- and floating-rate notes (A1/AA-/AA) in two parts on Tuesday, according to FWP filings with the Securities and Exchange Commission.

Royal Bank of Canada priced $1.5 billion of three-year floating-rate notes at par to yield Libor plus 39 bps.

The bank sold $1.5 billion of 3.2% notes due April 30, 2021 at 99.929 to yield 3.225%, or a spread of Treasuries plus 60 bps.

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

The financial services company is based in Toronto.

Bacardi brings $2.6 billion

Bacardi priced a $2.6 billion offering of guaranteed notes (Ba1/BBB-/BBB-) in four tranches in a Rule 144A and Regulation S transaction on Tuesday, according to a market source.

Bacardi sold $650 million of 4.45% seven-year notes at a spread of Treasuries plus 155 bps.

The company priced $800 million of 4.7% 10-year notes with a Treasuries plus 175 bps spread.

Bacardi sold $350 million of 5.15% 20-year notes at a 200 bps over Treasuries spread.

In the final tranche, the company sold $700 million of 5.3% 30-year bonds with a Treasuries plus 215 bps spread.

The notes priced on top of guidance.

The deal had a final book size of $5.75 billion.

BofA Merrill Lynch, Barclays and Citigroup Global Markets Inc. were the bookrunners.

The notes will be guaranteed by Bacardi’s indirect subsidiaries, Bacardi-Martini BV, Bacardi Corp. and Bacardi U.S.A., Inc.

Bacardi is a privately-held spirits company based in Hamilton, Bermuda.

U.S. Bank prices $2 billion

U.S. Bank priced $2 billion of three-year notes (A1/AA-/AA) in two tranches on Tuesday, according to a market source.

The company sold $1 billion of floating-rate notes due April 26, 2021 at Libor plus 32 bps.

U.S. Bank priced $1 billion of 3.15% three-year notes at a spread of Treasuries plus 53 bps.

U.S. Bancorp Investments, Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC were the bookrunners.

U.S. Bank is a Cincinnati, Ohio-based banking services company.

U.S. Bancorp sells notes

U.S. Bancorp priced $850 million of 3.9% 10-year medium-term senior notes (A1/A+/AA-) on Tuesday at 99.729 to yield 3.933%, or a spread of 95 bps over Treasuries, according to an FWP filing with the SEC.

U.S. Bancorp Investments, Goldman, Sachs and Morgan Stanley were the bookrunners.

Minneapolis-based U.S. Bancorp is a holding company and parent of U.S. Bank NA.

SunTrust raises $850 million

SunTrust Banks priced $850 million of 4% senior notes due May 1, 2025 on Tuesday at a spread of 108 bps over Treasuries, according to an FWP filing with the SEC.

The notes (Baa1/BBB+/A-) priced at 99.872 to yield 4.021%.

SunTrust Robinson Humphrey Inc., Barclays, Morgan Stanley and RBC Capital Markets were the bookrunners.

Proceeds will be used for general corporate purposes.

The financial holding company for SunTrust Bank is based in Atlanta.

Harvest sells notes

Harvest Operations (Aa2/AA/) priced $397.5 million of 4.20% five-year senior notes on Tuesday on top of guidance at a spread of Treasuries plus 140 bps, according to a market source.

BofA Merrill Lynch and SMBC Nikko Securities America, Inc. were the arrangers.

The company held fixed-income investor calls on Thursday and Friday.

Harvest Operations is a Canadian oil and natural gas company based in Calgary, Alta.

© 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.