Bank of America, United, Discover Bank, National Rural, American Homes, Hubbell, NWB price

By Cristal Cody

Tupelo, Miss., Jan. 31 – Several issuers lined up to tap the investment-grade primary market on Wednesday in a marked pickup in supply over the week’s first two sessions.

Bank of America Corp. sold $1.5 billion of eight-year floating-rate senior notes.

United Airlines, Inc. priced $935.14 million of pass-through certificates in two classes.

Discover Bank came with an $800 million offering of five-year senior notes.

National Rural Utilities Cooperative Finance Corp. sold $700 million of 10-year collateral trust bonds.

American Homes 4 Rent LP placed $500 million of 10-year senior notes on Wednesday.

Hubbell Inc. priced $450 million of 10-year senior notes.

Also, Nederlandse Waterschapsbank NV upsized its offering of 18-month senior floating-rate notes to $1 billion.

The Markit CDX North American Investment Grade 29 index closed mostly unchanged on the day at a spread of 47 basis points.

BofA sells $1.5 billion

Bank of America sold $1.5 billion of series M medium-term floating-rate senior notes (A3/A-/A) due Feb. 5, 2026 on Wednesday at par to yield Libor plus 77 bps, according to an FWP filing with the Securities and Exchange Commission.

BofA Merrill Lynch was the bookrunner.

The financial services company is based in Charlotte, N.C.

United sells certificates

United Airlines sold $935.14 million of series 2018-1 pass-through certificates due Sept. 1, 2031 in two classes on Wednesday, according to FWP filings with the SEC.

The company sold $677,175,000 of 3.5% class AA pass-through certificates (Aa3/AA) at par.

United priced $257,965,000 of 3.7% class A pass-through certificates (A2/A) at par.

The certificates have an expected final distribution date of March 1, 2030.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Goldman Sachs & Co., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Barclays, BofA Merrill Lynch, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC, Standard Chartered Bank and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to acquire equipment notes that will be issued to finance United’s purchase of two new Boeing 737-800 aircraft, six new Boeing 737 MAX 9 aircraft, five new Boeing 787-9 aircraft and three new Boeing 777-300ER aircraft.

The airline is based in Chicago.

Discover prices $800 million

Discover Bank sold $800 million of 3.35% five-year senior notes (Baa3/BBB/BBB+) at a spread of 82 bps over Treasuries on Wednesday, according to a market source.

The notes priced on the tight side of guidance in the Treasuries plus 85 bps area and better than initial talk in the 100 bps area.

BofA Merrill Lynch, Citigroup Global Markets and Deutsche Bank Securities were the lead managers.

Discover Bank is a banking and payment services company based in Riverwoods, Ill.

American Homes brings notes

American Homes 4 Rent sold $500 million of 4.25% 10-year senior notes (Baa3/BBB-/) at a spread of 158 bps over Treasuries, according to an FWP filing with the SEC on Wednesday.

The notes priced at 99.442 to yield 4.319%.

J.P. Morgan Securities, Citigroup Global Markets, BofA Merrill Lynch, Morgan Stanley and Wells Fargo Securities were the bookrunners.

The notes are guaranteed by American Residential Properties OP, LP.

Proceeds will be used for general corporate purposes, including acquisitions, debt repayment, capital expenditures, expansion, redevelopment and/or improvement of properties, working capital and other general purposes, including securities repurchases.

American Homes is an Agoura Hills, Calif.-based real estate investment trust.

Hubbell raises $450 million

Hubbell priced $450 million of 3.5% 10-year senior notes (Baa1/BBB+/A-) on Wednesday at 99.438 to yield 3.567% and a spread of 83 bps over Treasuries, according to an FWP filed with the SEC.

J.P. Morgan Securities, BofA Merrill Lynch and HSBC Securities (USA) Inc. were the bookrunners.

Proceeds will be used to fund part of the company’s planned reverse triangular merger with Aclara Technologies LLC.

The electrical and electronic products company is based in Shelton, Conn.

Nederlandse upsizes notes

Nederlandse Waterschapsbank (Aaa/AAA/) priced $1 billion of senior floating-rate notes due Aug. 9, 2019 on Wednesday on top of talk at Libor plus 2 bps, according to a market source.

The notes were initially talked to price in the Libor plus 2 bps area. The Rule 144A and Regulation deal was upsized from $500 million.

BofA Merrill Lynch, Nomura Securities International, Inc. and RBC Capital Markets, LLC were the lead managers.

The local government funding agency is based in The Hague.

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