U.S. Bank, BP Capital, Piedmont Gas, Sabra, IBRD, Kommuninvest, Tokyo Metro price notes

By Cristal Cody

Tupelo, Miss., May 21 – Primary supply remained strong on Tuesday with investment-grade corporate and sovereign, supranational and agency issuance.

U.S. Bank NA priced $1.25 billion of three-year senior bank notes in two tranches.

BP Capital Markets plc came with $1 billion of 18-month floating-rate notes.

Piedmont Natural Gas Co., Inc. sold $600 million of 10-year senior notes.

Sabra Health Care LP and Sabra Capital Corp. placed $300 million of five-year senior notes 25 basis points tighter than initial talk.

Also, Toyota Motor Credit Corp. sold $75 million of three-year medium-term callable notes during the session.

In the SSA primary market on Tuesday, the International Bank for Reconstruction and Development, or World Bank, priced $4 billion of three-year global notes.

Kommuninvest I Sverige AB brought an upsized $1.25 billion of two-year notes.

Also, the Tokyo Metropolitan Government priced $1 billion of five-year senior notes.

More than $13 billion of investment-grade bonds have priced week to date.

Deal volume is expected to continue through Wednesday before activity thins ahead of the early market close on Friday and long Memorial Day holiday weekend.

About $20 billion to $25 billion of issuance was forecast by syndicate sources for the short week.

More than $9 billion of high-grade notes priced on Monday, led by Wells Fargo Bank NA’s $2.1 billion two-part offering of senior bank notes.

In the secondary market, U.S. Bank’s new notes traded flat to 1 bp tighter.

New issues priced on Monday were mixed in aftermarket trading, a source said.

Cargill Inc.’s $1 billion of senior notes (A2/A/A), priced in two tranches in the previous session, traded wrapped around issuance to about 0.5 of a bp tighter.

The Minneapolis-based food and agriculture company sold $650 million of 3.25% notes due May 23, 2029 at a spread of Treasuries plus 90 bps. The notes were flat in the secondary market.

Cargill sold $350 million of 3.875% notes due May 23, 2049 with a Treasuries plus 112.5 bps spread. The 30-year notes edged tighter in secondary trading to the 112 bps area.

The Markit CDX North American Investment Grade 32 index improved about 1 bp on Tuesday to close at a spread of 63 bps.

U.S. Bank brings $1.25 billion

U.S. Bank priced $1.25 billion of three-year senior bank notes (A1/AA-/AA) in two tranches on Tuesday, according to a market source.

The company sold $350 million of floating-rate notes due May 23, 2022 at par to yield Libor plus 44 bps.

U.S. Bank priced $900 million of 2.65% three-year notes at 99.894 to yield 2.687%, or a spread of Treasuries plus 48 bps.

Barclays, RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc. were the bookrunners.

In the secondary market, the floating-rate notes traded wrapped around issuance, while the fixed-rate notes firmed 1 bp to 47 bps bid.

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

BP Capital prices $1 billion

BP Capital Markets priced $1 billion of floating-rate notes due Nov. 24, 2020 (A1/A-/) on Tuesday at Libor plus 25 bps, according to a market source.

BofA Securities, Inc. and Credit Suisse Securities (USA) LLC were the bookrunners.

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

Piedmont Gas sells notes

Piedmont Natural Gas sold $600 million of 3.5% 10-year senior notes at 99.748 to yield 3.53% on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The notes (A3/A-/) priced with a spread of 119 bps over Treasuries.

Bookrunners were BNP Paribas Securities Corp., Credit Suisse Securities, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments.

The natural gas distributor is based in Charlotte, N.C.

Sabra Health prices

Sabra Health Care and Sabra Capital priced $300 million of 4.8% five-year senior notes (Ba1/BBB-/BBB-) on Tuesday at 99.863 to yield 4.831%, or a spread of 260 bps over Treasuries, according to an FWP filing with the SEC.

Initial talk was in the Treasuries plus 285 bps area.

The bookrunners were BofA Securities, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BBVA Securities Inc., SMBC Nikko Securities and Stifel, Nicolaus & Co., Inc.

Sabra Health and Sabra Capital are subsidiaries of Sabra Health Care REIT, Inc., an Irvine, Calif., real estate investment trust specializing in the health care sector.

Toyota Motor Credit prints

Toyota Motor Credit (Aa3/AA-/A+) priced $75 million of medium-term notes due May 26, 2022 at par to yield 2.7% on Tuesday, according to a 424B2 filing with the SEC.

TD Securities (USA) LLC was the bookrunner.

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

World Bank prices $4 billion

World Bank priced $4 billion of 2.125% global notes due July 1, 2022 (Aaa/AAA/AAA) on Tuesday at mid-swaps plus 2 bps, or a Treasuries plus 5.3 bps spread, according to a market source.

The notes were initially talked to price with a spread in the mid-swaps plus 3 bps area.

BMO Capital Markets Corp., Citigroup Global Markets Ltd., Deutsche Bank Securities Inc. and Nomura Securities International, plc were the bookrunners.

The global development financing cooperative is based in Washington, D.C.

Kommuninvest upsizes

Kommuninvest I Sverige (Aaa/AAA/) sold $1.25 billion of 2.5% notes due May 29, 2021 on Tuesday at mid-swaps plus 6 bps, or a spread of Treasuries plus 11.65 bps, according to a market source.

Initial talk was in the mid-swaps plus 6 bps area.

The deal was upsized from $1 billion.

Barclays, BNP Paribas Securities, Citigroup Global Markets and Skandinaviska Enskilda Banken were the bookrunners for the Rule 144A and Regulation S offering.

Kommuninvest is an Orebro-based company that offers funding to municipalities of Sweden.

Tokyo Metropolitan sells $1 billion

Tokyo Metropolitan Government (/A+/) priced $1 billion of 2.625% five-year senior notes on Tuesday in a Rule 144A and Regulation S offering at mid-swaps plus 43 bps, according to a market source.

The notes were initially talked to price in the mid-swaps plus 47 bps area with guidance tightened to the 45 bps area.

BofA Securities and Citigroup Global Markets were the bookrunners.

Tokyo Metropolitan Government is the government of the Tokyo Metropolis in Japan with headquarters based in Shinjuku-ku, Tokyo.

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