WestRock, Tyson, CenterPoint Energy, Baltimore Gas tap primary; credit spreads mostly flat

By Cristal Cody

Tupelo, Miss., Aug. 21 – High-grade corporate issuers found a window during the eclipse-driven session to price new bonds.

WestRock Co. came with a $1 billion Rule 144A and Regulation S two-part offering of senior notes.

Hyundai Capital Services Inc. planned to price a benchmark Rule 144A and Regulation S offering of fixed-rate senior notes in five- and 10-year tranches on Monday. The deal attracted more than $1 billion of demand. Pricing terms were not immediately available.

In other issuance on Monday, Tyson Foods, Inc. sold $900 million of senior notes in two parts.

CenterPoint Energy Resources Corp. placed $300 million of 30-year senior notes in a no-grow offering.

Also, Baltimore Gas & Electric Co. priced $300 million of 30-year notes during the session.

About $5 billion to $10 billion of supply is forecast for the week with issuance expected to stay light for the rest of the month, according to a market source.

The Markit CDX North American Investment Grade index was modestly tighter on the day at a spread of 62 basis points.

WestRock prices $1 billion

WestRock sold $1 billion of senior notes (Baa2/BBB/) in two tranches in a Rule 144A and Regulation S offering on Monday, according to a news release.

The company priced $500 million of 3% notes due 2024 and $500 million of 3.375% notes due 2027.

Proceeds will be used to repay about $990 million of debt.

Norcross, Ga.-based WestRock provides paper and packaging services for companies.

Tyson raises $900 million

Tyson Foods sold $900 million of senior notes (Baa2/BBB/BBB) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.

The company priced $400 million of three-year floating-rate notes at par to yield Libor plus 45 bps.

Tyson Foods sold $500 million of 2.25% four-year fixed-rate notes at 99.814 to yield 2.299%, or a spread of Treasuries plus 85 bps.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, J.P. Morgan Securities LLC and Barclays were the bookrunners.

Proceeds will be used to repay debt under the company’s term loan tranche due in June 2020 and to pay down other debt.

The meat and food production company is based in Springdale, Ark.

CenterPoint Energy prices

CenterPoint Energy Resources sold $300 million of 4.1% 30-year senior notes on Monday at a spread of 137.5 bps over Treasuries, according to an FWP filing with the SEC.

The notes (Baa2/A-/BBB) priced at 99.417 to yield 4.134%.

Bookrunners were Deutsche Bank Securities Inc., Goldman Sachs & Co. and Morgan Stanley.

Proceeds will be used for general corporate purposes.

CenterPoint is a Houston-based energy delivery company.

Baltimore utility sells bonds

Baltimore Gas & Electric priced $300 million of 3.75% 30-year notes (A3/A-/A-) on Monday at 99.199 to yield 3.795%, according to an FWP filing with the SEC.

The notes priced with a spread of 103 bps over Treasuries.

Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities and Morgan Stanley were the bookrunners.

Proceeds will be used to redeem $250 million of BGE Capital Trust II 6.2% deferrable interest subordinated debentures due Oct. 15, 2043, to repay commercial paper and for general corporate purposes.

The Baltimore-based company is a natural gas and electric utility distributor.

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