Toyota Motor Credit sells floaters; Parker-Hannifin plans deal; H.B. Fuller, BP Capital firm

By Cristal Cody

Tupelo, Miss., Feb. 10 – Toyota Motor Credit Corp. came to the investment-grade market on Friday with a $650 million offering of 18-month floating-rate notes.

Looking to the week ahead, about $20 billion to $25 billion of high-grade issuance is forecast by market participants.

Parker-Hannifin Corp. plans to hold a roadshow in the week ahead for dollar-denominated senior notes and euro-denominated notes.

New bonds priced over the week were mixed in secondary trading on Friday.

H.B. Fuller Co.’s 4% senior notes due Feb. 15, 2027, which priced in a $300 million tranche on Thursday, tightened nearly 10 basis points on the bid side.

Tennessee Valley Authority’s $1 billion offering of 2.875% global power bonds due Feb. 1, 2027 traded mostly wrapped around issuance.

BP Capital Markets plc’s $3.1 billion offering of notes (A2/A-/A), which priced in four tranches on Wednesday, traded modestly better.

The Markit CDX North American Investment Grade index was little changed on the day at a spread of 65 bps.

Toyota Motor Credit prices

Toyota Motor Credit priced $650 million of 18-month series B medium-term floating-rate notes (Aa3/AA-/) at par to yield Libor plus 23 bps on Friday, according to an FWP filing with the Securities and Exchange Commission.

The notes are due Aug. 15, 2018.

RBC Capital Markets, LLC was the agent on the deal.

Toyota Motor Credit is a Torrance, Calif.-based financing arm and subsidiary of Toyota Motor Corp.

Parker-Hannifin plans roadshow

Parker-Hannifin is expected to price dollar-denominated senior notes and euro-denominated bonds following a roadshow, according to a market source on Friday.

Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC are arrangers of the roadshow, which will start in the U.S. market on Monday for the Rule 144A and Regulation S notes offering and continue the following three days in Europe for the euro issue.

Parker-Hannifin announced on Wednesday that it intends to offer $2.5 billion of fixed-rate senior notes (Baa1/A/A-) in private transactions, according to an 8-K filing with the SEC.

On Dec. 1, the company said it plans to take on about $3 billion of debt to acquire Clarcor Inc. in a transaction valued at about $4.3 billion. The acquisition is expected to close by the end of the month pending shareholder approval.

Proceeds from the deals will be used to finance a portion of the Clarcor acquisition.

Parker-Hannifin is a Cleveland-based manufacturer of motion and control technologies.

H.B. Fuller tightens

H.B. Fuller’s 4% notes due 2027 tightened to 156 bps bid, 153 bps offered in the secondary market, a source said on Friday.

The company priced $300 million of the 10-year notes (Baa3/BBB/) on Thursday at a spread of 165 bps over Treasuries.

The industrial adhesives, sealants, coatings and specialty materials company is based in St. Paul, Minn.

TVA steady

Tennessee Valley Authority’s 2.875% bonds due 2027 traded on Friday at 48 bps bid, 46 bps offered, according to a market source.

The authority priced $1 billion of the 10-year bonds (Aaa//AAA) on Tuesday at a spread of 48 bps over Treasuries.

Tennessee Valley Authority is a Knoxville, Tenn.-based corporate agency of the United States of America that provides electricity and is responsible for managing the Tennessee River and its tributaries to provide flood control, navigation and land management.

BP Capital firms

BP Capital Markets’ tranche of 3.588% notes due April 14, 2027 firmed to 121 bps bid, 118 bps offered in the secondary market, a source said on Friday.

The company priced $850 million of the notes on Wednesday at a Treasuries plus 125 bps spread.

BP Capital Markets is a financing arm of London-based oil and gas company BP plc.

© 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.