Exelon, Union Pacific, Amphenol bring corporate supply; Sweden prices; Exelon, Verizon flat

By Cristal Cody

Tupelo, Miss., March 29 – Corporate supply in the high-grade bond market on Wednesday included deals from Hyundai Capital America, Exelon Corp., Union Pacific Corp., Amphenol Corp. and Northwest Pipeline LLC.

Hyundai Capital America priced $1.1 billion of notes in three parts.

Exelon sold $1.15 billion of five-year junior subordinated notes in a remarketing of its 2.5% notes due 2024 that garnered $4.5 billion of demand, a source said.

Union Pacific priced $1 billion of senior notes in two parts during the session.

Amphenol brought a $750 million two-part offering of senior notes to the market.

Northwest Pipeline priced $250 million of 10-year senior notes.

In sovereign action, the Kingdom of Sweden said it priced $2 billion of 1.625% three-year benchmark notes at mid-swaps minus 6 basis points on Wednesday, the tightest spread of a benchmark U.S. transaction year to date.

The bid volume exceeded $3.4 billion with 56 investors in the mix.

“It was positive to see such strong demand considering our six months' absence from the dollar market,” Maria Norstrom, head of funding at the Swedish National Debt Office, said in a press release.

The debt office said since it released its latest issuance plan in February, Sweden’s ministry of finance published a proposal on the central bank’s financial independence. If the proposal is approved, the debt office’s foreign currency funding would be affected. The debt office plans to release a new issuance plan in June, according to the release.

The Markit CDX North American Investment Grade index closed about 1 bp softer at a spread of 68 bps.

In the secondary market, Exelon subsidiary Exelon Generation Co., LLC’s 3.4% senior notes due March 15, 2022 priced earlier in March were unchanged but better than issuance.

Verizon Communications Inc.’s 4.125% notes due March 16, 2027 were stable over the day.

Exelon remarkets

Exelon priced $1.15 billion of 3.497% junior subordinated notes due June 1, 2022 (Baa3/BBB-/BBB-) at 100.303 to yield 3.433% in a remarketing on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The notes priced with a spread of 150 basis points over Treasuries.

The notes were originally issued as 2.5% notes due 2024 and as a component of the equity units sold by the company in June 2014.

Citigroup Global Markets, Goldman Sachs & Co., BofA Merrill Lynch, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC and PNC Capital Markets LLC were the lead remarketing agents.

Proceeds will be used for general corporate purposes and to refund or discharge long-term debt.

Exelon is the parent of Exelon Generation and is a utility services holding company based in Chicago.

Hyundai sells three tranches

Hyundai Capital America priced $1.1 billion of medium-term notes (Baa1/A-/) in three tranches in a Rule 144A/Regulation S offering on Wednesday, according to a market source.

The company sold $200 million of three-year floating-rate notes at Libor plus 80 bps.

Hyundai Capital America priced $400 million of 2.55% three-year fixed-rate notes at a spread of Treasuries plus 108 bps.

In the third tranche, the company sold $500 million of 3.1% five-year fixed-rate notes at a Treasuries plus 120 bps spread.

BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc. and Mizuho Securities USA Inc. were the bookrunners.

Hyundai Capital America is an Irvine, Calif.-based auto financing arm of the Hyundai Motor Co.

Union Pacific prices $1 billion

Union Pacific priced $1 billion of senior notes (A3/A/) in two tranches on Wednesday, according to an FWP filing with the SEC.

Union Pacific priced $500 million of 3% 10-year notes at 98.608 to yield 3.163%. The notes priced at a spread of 77 bps over Treasuries.

Union Pacific sold $500 million of 4% 30-year notes with a spread of Treasuries plus 107 bps. The notes priced at 98.655 to yield 4.078%.

Citigroup Global Markets, J.P. Morgan Securities LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.

The Omaha-based railroad transportation company will use the proceeds for general corporate purposes, including stock repurchases.

Amphenol brings two tranches

Amphenol raised $750 million in a two-part offering of senior notes (Baa1/BBB+/) on Wednesday, according to an FWP filing with the SEC.

The company sold $400 million of 2.2% three-year notes at 99.922 to yield 2.227% and a spread of Treasuries plus 70 bps.

Amphenol priced $350 million of 3.2% seven-year notes at 99.888 to yield 3.218%, or Treasuries plus 100 bps.

Barclays, Citigroup Global Markets, Wells Fargo Securities LLC, HSBC Securities (USA) Inc. and Mizuho Securities USA Inc. were the bookrunners.

Proceeds will be used to repay all $375 million of outstanding 1.55% notes due 2017 and for general corporate purposes.

The designer, manufacturer and marketer of electric, electronic and fiber optic components is based in Wallingford, Conn.

Northwest Pipeline in market

Northwest Pipeline priced $250 million of 4% 10-year senior notes (Baa2/BBB/BBB) on Wednesday at a spread of Treasuries plus 165 bps, a market source said.

The notes due April 1, 2027 priced on the tight side of guidance.

Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey, Inc. and USB Securities LLC were the bookrunners.

Proceeds will be used to repay debt.

Northwest Pipeline is a Houston, Texas-based natural gas pipeline company and operating subsidiary of Williams Partners LP.

Sweden sells $2 billion

The Kingdom of Sweden (Aaa/AAA/AAA) sold $2 billion of 1.625% three-year benchmark notes at 99.659 to yield 1.742% on Wednesday, according to a press release.

The notes due April 6, 2020 priced at mid-swaps minus 6 bps, or a spread of Treasuries plus 21.95 bps.

Barclays, Citigroup Global Markets Inc. and NatWest Markets were the lead managers.

Central banks and official institutions purchased 73% of the bonds. Banks took 14% of the notes, while financial managers bought 8% and other investor types took the remaining 5%.

Investors in Asia took 63% of the notes, while Europe-based investors purchased 24% and investors in the Americas bought 13%.

Proceeds from the deal will be used to refinance loans to the Riksbank, the central bank of Sweden.

Exelon flat

Exelon Generation’s 3.4% senior notes due March 15, 2022 were unchanged on Wednesday at 121 bps bid after tightening 8 bps in the previous session, according to a market source.

Exelon priced $500 million of the notes (Baa2/BBB/BBB) on March 7 at a spread of Treasuries plus 140 bps.

The utility services holding company is based in Chicago.

Verizon steady

Verizon Communications’ 4.125% notes due March 16, 2027 were flat on Wednesday at 150 bps bid, a market source said.

Verizon sold $3.25 billion of the notes (Baa1/BBB+/A-) on March 13 at a spread of Treasuries plus 160 bps.

The telecommunications company is based in New York City.

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