Mars prices $5 billion; NatWest, CIBC, Swiss Re print; RenaissanceRe, Vodafone offer notes

By Cristal Cody

Tupelo, Miss., March 26 – Mars Inc. led deal volume in the high-grade primary market on Tuesday with a $5 billion eight-part offering of senior notes that priced on the tight side of guidance.

NatWest Markets plc also brought $1.3 billion of senior notes in two tranches to the primary market.

In addition, Canadian Imperial Bank of Commerce sold $1 billion of five-year senior notes.

Swiss Re Finance (Luxembourg) SA priced a $1 billion Rule 144A and Regulation S offering of 30-year subordinated notes.

Meanwhile, RenaissanceRe Holdings Ltd. is holding fixed income investor calls for an offering of 10-year senior notes.

Also, Vodafone Group plc announced plans to price a dollar-denominated offering of 60-year capital securities.

High-grade issuers have priced more than $10 billion of bonds week to date.

About $20 billion of investment-grade supply is forecast for the week, according to market sources.

The Markit CDX North American Investment Grade 32 index firmed about 1 basis point on Tuesday to end at a spread of 68 bps.

In the secondary market, bonds were mixed.

Earlier, Interstate Power and Light Co.’s $300 million of green senior debentures due April 1, 2029 were quoted about 3 bps better than issuance.

Interstate Power and Light priced $300 million of the 10-year bonds (Baa1/A-/) on Monday at a spread of Treasuries plus 120 bps.

Fox Corp.’s 4.709% notes due Jan. 25, 2029 (Baa2/BBB/) priced in January softened about 7 bps on Tuesday. The company became a stand-alone company following the March 20 closing of Walt Disney Co.’s acquisition of 21st Century Fox America, Inc.

Dollar General Corp.’s 4.125% senior notes due May 1, 2028 that priced a year ago were active during the session and headed out about 2 bps weaker on the day.

Mars prices $5 billion

Mars priced $5 billion of senior notes (A1/A/) in eight tranches in a debut Rule 144A private placement offering on Tuesday, according to a market source.

The company sold $600 million of 2.7% notes due April 1, 2025 at a spread of 52 bps over Treasuries.

A $700 million tranche of 3.2% notes due April 1, 2030 priced with a Treasuries plus 82 bps spread.

The company sold $600 million of 3.6% notes due April 1, 2034 at a spread of 122 bps over Treasuries.

Mars placed $700 million of 3.875% notes due April 1, 2039 with a Treasuries plus 102 bps spread.

A $300 million offering of 3.95% notes due April 1, 2044 were sold at a spread of 110 bps over Treasuries.

In a $900 million tranche, Mars sold 3.95% 30-year notes with a spread of 112 bps over Treasuries.

The company placed $500 million of 4.125% notes due April 1, 2054 with a Treasuries plus 127 bps spread.

Finally, Mars sold $700 million of 4.2% notes due April 1, 2059 at a spread of 137 bps over Treasuries.

The notes priced on the tight side of guidance.

Bookrunners were BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.

Mars is a McLean, Va.-based global privately-held manufacturer of confectionary products, pet food and animal-care services.

NatWest Markets sells notes

NatWest Markets priced $1.3 billion of senior notes (Baa2/BBB+/A) in two tranches on Tuesday, according to a market source.

A $300 million tranche of long three-year floating-rate notes priced at Libor plus 140 bps.

The company sold $1 billion of 3.625% notes due Sept. 29, 2022 at a Treasuries plus 145 bps spread.

J.P. Morgan Securities, NatWest Markets, RBC Capital Markets, LLC and SG Americas Securities LLC were the bookrunners.

NatWest Markets is a London-based investment banking arm of Royal Bank of Scotland Group plc.

CIBC prices $1 billion

Canadian Imperial Bank of Commerce priced $1 billion of 3.1% five-year senior notes (Aa2/A+/AA-) on Tuesday at a spread of 92 bps over Treasuries, according to a market source.

The notes priced on the tight side of guidance in the Treasuries plus 95 bps area, plus or minus 3 bps, and better than initial talk in the 105 bps spread area.

Barclays, BofA Merrill Lynch, CIBC Worlds Markets Corp., J.P. Morgan Securities and Wells Fargo Securities LLC were the bookrunners.

The diversified financial institution is based in Toronto.

Swiss Re sells $1 billion

Swiss Re Finance (Luxembourg) priced a $1 billion Rule 144A and Regulation S offering of 5% subordinated notes due April 2, 2049 (A2/A+/) on Tuesday at a spread of 258.2 bps over Treasuries, according to a market source.

The coupon was talked in the 5.375% area with guidance later firmed to the 5.125% area.

The rate will reset in 2029 to Treasuries plus 358.2 bps.

BofA Merrill Lynch, Barclays, Citigroup Global Markets and Wells Fargo Securities were the bookrunners.

The issue will be guaranteed by Swiss Reinsurance Co. Ltd.

Swiss Re Finance is a Luxembourg-based financing arm of reinsurance company Swiss Re Ltd.

RenaissanceRe holds calls

RenaissanceRe Holdings is holding fixed income investor calls for an offering of 10-year senior notes (A3/A-/), according to a market source and a 424B2 filing with the Securities and Exchange Commission on Tuesday.

The investor calls began on Tuesday and will continue on Wednesday.

Bookrunners are Citigroup Global Markets, BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities.

RenaissanceRe is a Hamilton, Bermuda-based reinsurance company.

Vodafone plans deal

Vodafone Group (Baa2/BBB+/BBB+) intends to price a dollar-denominated offering of capital securities due 2079, according to a 424B2 filing with the SEC on Tuesday.

The notes will reset in April 2029 to April 2049 at a rate equal to a rate plus the then five-year swap rate and will reset from April 2049 to April 2079 to a rate plus the then five-year swap rate.

BofA Merrill Lynch and RBC Capital Markets are the bookrunners.

The notes will be callable at the first call date to the first reset date.

The deal includes a 101% change-of-control put.

The telecommunications company is based in London.

Fox softens

In the secondary market, Fox’s 4.709% notes due Jan. 25, 2029 traded about 7 bps wider on Monday at 141 bps bid on Tuesday, a source said.

The company (Baa2/BBB/) sold $2 billion of the 10-year notes on Jan. 15 at a Treasuries plus 200 bps spread.

The notes were priced as part of a $6.8 billion five-part offering to help fund a one-time dividend to the issuer’s parent predecessor company, 21st Century Fox America, to use to pay the tax liability when 21st Century Fox spun off its assets before it was acquired by Walt Disney.

Fox is a mass media company based in New York City.

Dollar General eases

Dollar General’s 4.125% senior notes due May 1, 2028 (Baa2/BBB/) traded about 2 bps wider at 148.5 bps bid on Tuesday, according to a market source.

Dollar General sold $500 million of the notes on March 26, 2018 at a spread of 130 bps over Treasuries.

The discount retailer is based in Goodlettsville, Tenn.

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