BNG, Sweden, Oneok issue bonds; Goldman Sachs soft; Exxon Mobil mixed

By Aleesia Forni and Cristal Cody

Virginia Beach, March 17 – Bank Nederlandse Gemeenten NV, Sweden, Oneok Partners LP, Liberty Property LP and Washington Prime Group Inc. were among the issuers pricing bonds on Tuesday during another weaker session for investment-grade bonds.

Many new deals continue to face pushback from investors, as the market digests the more than $120 billion of new issues priced so far this month.

BNG and Sweden were each in the market with new bonds priced at the tight end of guidance.

Also on Tuesday, Oneok Partners and Liberty Property each sold upsized new issues.

Washington Prime Group sold a $250 million issue of five-year notes wide of price talk after scrapping plans for an additional 10-year tranche.

Masco Corp. came to market with a $500 million crossover issue of 10-year senior notes priced at the tight end of guidance.

Investment-grade corporate bonds traded flat to modestly softer on the day as traders await the outcome of the Federal Reserve’s policy meeting on Wednesday, sources said.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 65 basis points.

Goldman Sachs Group Inc.’s 3.5% senior notes due 2025 widened 4 bps over the session.

Exxon Mobil Corp.’s senior notes (Aaa/AAA/) traded flat to weaker on Tuesday.

BNG offering

Bank Nederlandse Gemeenten sold a $2 billion offering of 1.75% five-year notes (Aaa/AA+/AAA) at mid-swaps plus 8 bps on Tuesday, according to a market source.

The notes were sold at the tight end of guidance set in the mid-swaps plus 10 bps area.

The bookrunners were Barclays, J.P. Morgan Securities LLC, Nomura and TD Securities.

The local government funding agency is based in the Hague, the Netherlands.

Sweden five-years

Sweden priced $1.75 billion of 1.625% five-year notes (Aaa/AAA/AAA) on Tuesday at mid-swaps minus 4 bps, or Treasuries plus 12.1 bps, according to a market source and a company release.

Guidance was set in the mid-swaps minus 3 bps area after having tightened from initial talk in the mid-swap minus 2 bps area.

Pricing was at 99.799 to yield 1.667%.

The bookrunners were Barclays, Credit Suisse Securities and HSBC.

The notes were sold via Rule 144A and Regulation S.

Oneok upsizes

Oneok Partners priced an upsized $800 million offering of senior notes (Baa2/BBB/) in tranches due 2020 and 2025 on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $300 million of 3.8% senior notes due 2020 at 225 bps over Treasuries. Pricing was at 99.982 to yield 3.804%.

The notes sold at the tight end of guidance set in the 237.5 bps area over Treasuries.

A second tranche was $500 million of 4.9% notes due 2025 sold at 99.79 to yield 4.927%, or Treasuries plus 287.5 bps.

Guidance was set in the 300 bps area over Treasuries.

The notes are guaranteed by Oneok Partners Intermediate LP.

JPMorgan, Deutsche Bank Securities Inc., MUFG and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to repay amounts under a $1.7 billion commercial paper program and for general corporate purposes.

The natural gas company is based in Tulsa, Okla.

Masco crossovers

Masco priced a $500 million issue of split-rated non-callable 10-year senior notes (Ba3/BBB/BB+) at par to yield 4.45% on Tuesday, according to a market source.

The yield printed five bps beneath the midpoint of final yield talk in the 4.5% area. Earlier talk was 4.5% to 4.75%.

The deal came with early guidance in the mid-to-high 4% range, a market source said.

Citigroup Global Markets, Deutsche Bank Securities, JPMorgan, RBC Capital Markets and SunTrust Robinson Humphrey were the joint bookrunners.

The Taylor, Mich.-based manufacturer of products for the home improvement and new home construction markets plans to use the proceeds for general corporate purposes, which may include working capital, debt repayment, acquisitions and investments in new or existing lines of business.

Liberty Property upsizes

Liberty Property sold an upsized $400 million of 3.75% senior notes (Baa1/BBB/BBB) due 2025 with a spread of Treasuries plus 173 bps on Tuesday, according to an informed source and an FWP filed with the SEC.

Pricing was at 99.644 to yield 3.793%.

The notes sold at the tight end of guidance set in the 175 bps area over Treasuries. Initial talk was set at 175 bps to 180 bps over Treasuries.

The offering was upsized from a planned $300 million.

Citigroup Global Markets, JPMorgan and Wells Fargo Securities LLC were the joint bookrunners.

The company intends to use the proceeds for working capital and general corporate purposes, including the repayment of borrowings under its $800 million credit facility.

The real estate investment trust for industrial and office properties is based in Malvern, Pa.

Washington Prime notes

Washington Prime Group sold $250 million of 3.85% five-year notes (Baa2/BBB/BBB-) on Tuesday at Treasuries plus 230 bps, according to an informed source and a company news release.

The notes sold at 99.972 to yield 3.856%.

Pricing was wider than initial price thoughts set at 215 bps to 220 bps over Treasuries.

A planned 10-year tranche was dropped prior to the deal’s launch.

Proceeds will be used to repay debt.

The bookrunners were Citigroup Global Markets, JPMorgan and RBS Securities Inc.

Washington Prime is a Bethesda, Md.-based real estate investment trust.

Goldman paper eases

Goldman Sachs’ 3.5% notes due 2025 traded 4 bps wider to head out at 151 bps bid in the secondary market, according to a source.

Goldman sold $1.7 billion of the notes (Baa1/A-/A) on Jan. 20 at Treasuries plus 170 bps.

The financial services company is based in New York City.

Exxon Mobil flat to weaker

Exxon Mobil’s 1.912% notes due 2020 were unchanged in secondary trading on Tuesday at 34 bps bid, according to a market source.

The company sold $1.15 billion of the notes on March 3 at Treasuries plus 30 bps.

Exxon Mobil’s 2.709% notes due 2025 eased 3 bps to 71 bps bid, the market source said.

The company sold $1.75 billion of the notes at Treasuries plus 58 bps in the March 3 offering.

Exxon Mobil is an oil and gas company based in Irving, Texas.

Paul A. Harris contributed to this review.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.