FirstEnergy, John Deere, Sysco, Toyota price; Municipality Finance, Reckitt plan bond deals

By Cristal Cody

Tupelo, Miss., June 19 – High-grade issuers including FirstEnergy Corp., John Deere Capital Corp. and Toyota Motor Credit Corp. tapped the primary market on Monday.

FirstEnergy brought a $3 billion three-part offering of fixed-rate notes during the session.

John Deere Capital placed $1.25 billion of notes in three tranches.

Also, Sysco Corp. sold $750 million of 10-year notes.

Massachusetts Mutual Global Funding II came with $750 million of seven-year notes.

Toyota Motor Credit priced $600 million of 18-month floating-rate notes.

Looking to primary action on Tuesday, Municipality Finance plc is expected to price a $250 million tap of its existing floating-rate notes due Feb. 7, 2020.

Also, Reckitt Benckiser Group plc will continue a second day of investor calls on Tuesday for an upcoming dollar-denominated senior notes offering.

Several more deals are in the pipeline, a source said.

Market sources forecast about $25 billion of bond issuance over the week.

The Markit CDX North American Investment Grade index closed about 1 basis point tighter at a spread of 60 bps.

FirstEnergy sells $3 billion

FirstEnergy sold $3 billion of fixed-rate senior notes (Baa3/BB+/BBB-) in three tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company priced $500 million of series A 2.85% five-year notes at 99.811 to yield 2.89% and a spread of Treasuries plus 110 bps.

FirstEnergy sold $1.5 billion of series B 3.9% 10-year notes at 99.667 to yield 3.94%, or a Treasuries plus 175 bps spread.

The company placed $1 billion of 4.85% series C 30-year notes at 99.369 to yield 4.89% and with a spread of 210 bps over Treasuries.

The notes all priced on the tightest side of guidance.

Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Goldman Sachs & Co., Mizuho Securities USA Inc., PNC Capital Markets LLC and Scotia Capital (USA) Inc. were the bookrunners.

Proceeds will be used to repay the company’s $650 million of outstanding 2.75% series A notes due 2018 and for general corporate purposes, including repaying short-term borrowings under its revolving credit facility.

The diversified energy holding company is based in Akron, Ohio.

John Deere prices

John Deere Capital priced $1.25 billion of series G senior medium-term notes (A2/A/A) in three parts on Monday, according to a market source and FWP filings with the SEC.

The company sold $450 million of three-year floating-rate notes at par to yield Libor plus 29 bps.

John Deere Capital priced $500 million of 1.95% three-year fixed-rate notes at 99.939 to yield 1.971% and a spread of 45 bps over Treasuries.

The company also sold $300 million of 2.65% seven-year notes at 99.809 to yield 2.68%, or Treasuries plus 67 bps.

Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities were the bookrunners.

John Deere Capital is a financing arm of Moline, Ill.-based farm equipment supplier Deere & Co.

Sysco brings deal

Sysco sold $750 million of 3.25% 10-year senior notes (A3/BBB+/) on Monday at 99.463 to yield 3.313%, according to an FWP filing with the SEC.

The notes priced with a spread of Treasuries plus 112.5 bps.

Goldman Sachs, J.P. Morgan Securities, TD Securities (USA) LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, Deutsche Bank Securities, HSBC Securities (USA) and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to repay borrowings under the company’s commercial paper program and for general corporate purposes.

Sysco is a Houston-based food service marketing and distribution company.

Massachusetts Mutual notes

Massachusetts Mutual Global Funding II priced $750 million of 2.75% seven-year notes (Aa2/AA+/AA) on Monday at a spread of 75 bps plus Treasuries, according to a market source.

BofA Merrill Lynch, Goldman Sachs and J.P. Morgan Securities were the bookrunners.

Massachusetts Mutual Global Funding II is a subsidiary of Springfield, Mass.-based Massachusetts Mutual Life Insurance Co.

Toyota sells floaters

Toyota Motor Credit priced $600 million of series B floating-rate medium-term notes due Dec. 24, 2018 (Aa3/AA-/) at par to yield Libor plus 15 bps on Monday, according to an FWP filing with the SEC.

BofA Merrill Lynch was the bookrunner.

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

Municipality Finance talks tap

Municipality Finance (Aa1/AA+/) plans to price a $250 million add-on to its floating-rate notes due Feb. 7, 2020 on Tuesday, according to a market source.

The notes are talked to price in the Libor plus 4 bps area.

The deal size is not expected to grow.

Barclays, RBC Capital Markets, LLC and Scotia Capital (USA) are the lead managers.

Municipality Finance originally sold $500 million of the floaters on Jan. 11 at Libor plus 17 bps.

The Helsinki, Finland-based credit institution provides funding for the public sector in Finland.

Reckitt Benckiser eyes deal

Reckitt Benckiser Group (A3/A-/) is expected to price a multi-tranche offering of dollar-denominated senior notes following a round of investor calls on Monday and Tuesday, according to a market source.

BofA Merrill Lynch, Deutsche Bank Securities, HSBC, J.P. Morgan Securities and Citigroup Global Markets are the bookrunners.

Reckitt Benckiser announced on Thursday that it completed its acquisition of the Mead Johnson Nutrition Co.

Reckitt Benckiser is a Slough, England-based consumer goods company that owns brands including Clearasil, Scholl, Lysol, Woolite and French’s mustard.

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