Verizon sells $1.12 billion more; Quanta issues notes; Barclays, Emerson price

By Devika Patel

Knoxville, Tenn., Sept. 17 – Primary activity in the investment-grade bond market on Thursday saw six new deals pricing.

New York-based Verizon Communications Inc., a telecommunications company, priced another $1.12 billion of 3% 40-year notes after selling $1 billion of 1.5% 10-year green notes on Wednesday.

Houston-based Quanta Services, Inc., a specialized contracting services company, sold $1 billion of 2.9% 10-year senior notes (Baa3/BBB-/) to help repay its term loan.

In addition, London-based Barclays plc, an investment bank and financial services company, priced $1 billion of 3.564% 15-year fixed-rate resetting subordinated split-rated callable notes (Baa3/BB+/BBB+).

Plus, St. Louis-based Emerson Electric Co., a technology and engineering company, priced $750 million of 0.875% notes due Oct. 15, 2026.

Also, Daytona Beach, Fla.-based Brown & Brown Inc., a diversified insurance company, sold $700 million of 2.375% senior notes (Baa3/BBB-) due March 15, 2031 at 99.89 and Newton, Mass.-based Office Properties Income Trust, a real estate investment trust, sold a $250 million add-on to its 4.5% senior notes (Baa3/BBB-) due Feb. 1, 2025 at 101.414.

Verizon sells new notes

Verizon priced a $1.12 billion 3% 40-year note at par.

BNP Paribas SA, Taipei Branch, Citibank Taiwan Ltd. and Goldman Sachs (Asia) LLC, Taipei Branch were the bookrunners.

Proceeds will be used for general corporate purposes.

On Wednesday, Verizon priced a $1 billion 1.5% 10-year green note at 99.889.

BofA Securities Inc., Citigroup Global Markets Inc., Loop Capital Markets LLC and Siebert Williams Shank & Co. LLC were the bookrunners for Wednesday’s note, the proceeds of which will be used for financing or refinancing eligible green investments.

Quanta prices $1 billion

Quanta Services priced $1 billion of 2.9% 10-year senior notes.

The bookrunners are BofA Securities Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC and Truist Securities.

Proceeds will be used to repay the term loans under the company’s existing credit agreement.

Barclays sells $1 billion

Barclays priced $1 billion of 3.564% 15-year fixed-rate resetting subordinated split-rated callable notes.

Barclays priced the notes at par to yield a spread of 290 basis points over Treasuries.

On Sept. 23, 2030, the coupon will reset to a rate equal to Treasuries plus 290 bps.

Barclays is the bookrunner.

Emerson prices $750 million

Emerson Electric priced $750 million of 0.875% notes due Oct. 15, 2026 at 99.712 to yield 0.924% with a spread of Treasuries plus 65 basis points.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the bookrunners.

Proceeds will be used to repay commercial paper, for general corporate purposes and to pay a portion of the purchase price for the company’s planned acquisition of Open Systems International, Inc.

Brown & Brown sells $700 million

Brown & Brown priced $700 million of 2.375% senior notes due March 15, 2031 at 99.89.

The notes have a spread of Treasuries plus 170 bps and will yield 2.387%.

J.P. Morgan Securities LLC, BofA Securities Inc., PNC Capital Markets LLC, Truist Securities, BMO Capital Markets Corp., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to repay borrowings under the company’s credit facility and for general corporate purposes.

Office Properties taps notes

Office Properties priced a $250 million add-on to its 4.5% senior notes due Feb. 1, 2025 at 101.414.

The notes have a spread of Treasuries plus 385 bps and will yield 4.122%.

The company sold $400 million of the bonds on Feb. 3, 2015.

BofA Securities Inc., Citigroup Global Markets Inc., PNC Capital Markets LLC, RBC Capital Markets Corp. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to repay debt under the company’s revolving credit facility and for general business purposes.

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