High-grade supply soars; Cigna, Edison, John Deere, Delta, eBay, Smucker, World Bank price

By Cristal Cody

Tupelo, Miss., March 4 – Investment-grade issuers reportedly priced more than $18 billion of bonds over Wednesday’s session.

The deals follow over $6 billion of issuance on Tuesday in what was the heaviest supply seen since mid-February.

The primary market was quiet on Monday.

Corporate primary action on Tuesday was expected to include deals from Cigna Corp., BP Capital Markets America Inc., Delta Air Lines Inc., Berkshire Hathaway Finance Corp., Southern California Edison Co., J.M. Smucker Co., Waste Connections, Inc., Healthcare Realty Trust Inc., eBay Inc., Avery Dennison Corp., L3Harris Technologies, Inc., Newmont Corp., John Deere Capital Corp. and Truist Financial Corp.

Cigna priced $3.5 billion of senior notes in three tranches.

Southern California Edison priced $1.1 billion of first and refunding mortgage bonds in two parts.

John Deere Capital priced $1 billion of senior medium-term notes in two tranches.

Delta Air Lines sold $1 billion of pass-through certificates in two parts.

eBay priced $1 billion of senior notes in two tranches.

J.M. Smucker sold $800 million of notes in two tranches.

Avery Dennison priced $500 million of 10-year senior notes.

Healthcare Realty Trust sold $300 million of 10-year senior notes.

Waste Connections priced $500 million 30-year senior notes.

Newmont sold $1 billion of 10-year senior notes.

L3Harris Technologies came with $250 million of three-year senior floating-rate notes.

BP Capital Markets America priced a $750 million add-on Wednesday to its 3% notes due Feb. 24, 2050.

Also, the International Bank for Reconstruction and Development, or World Bank, priced $3.5 billion of five-year sustainability bonds.

Up to about $15 billion of bond supply was forecast this week after volatility in the financial markets curtailed issuance last week.

The Federal Reserve cut the Federal Funds Rate on Tuesday by 50 bps to 1% to 1.25% on concerns the coronavirus poses to economic activity.

The Bank of Canada also trimmed rates on Wednesday.

The Markit CDX North American Investment Grade 33 index improved more than 4 basis points over the session to a spread of 65.2 bps.

Cigna prices $3.5 billion

Cigna priced $3.5 billion of senior notes (Baa2/A-/BBB) in three tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

At the top of the deal, the issuer sold $1.5 billion of 2.4% 10-year notes at a spread of Treasuries plus 142 bps, or 99.832 to yield 2.419%.

The notes were talked to price in the 165 bps spread area.

A $750 million tranche of 3.2% 20-year notes priced at 99.853 to yield 3.21%, or Treasuries plus 157 bps.

Initial price talk was the 180 bps area.

Cigna also sold $1.25 billion of 3.4% 30-year notes with a Treasuries plus 177 bps spread.

The notes priced at 99.813 to yield 3.41%.

Initial talk was in the Treasuries plus 200 bps area.

BofA Securities, Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.

Cigna is a Bloomfield, Conn.-based health service company.

Southern California Edison prices

Southern California Edison came with $1.1 billion of first and refunding mortgage bonds (A3/A-/BBB+) in two tranches, according to a market source and FWP filings.

The company sold $400 million of 2.25% 10-year bonds at 99.905 to yield 2.26% and a spread of Treasuries plus 125 bps.

The notes were initially talked to price in the Treasuries plus 145 bps area.

Southern California Edison also priced a $700 million reopening of its 3.65% first and refunding mortgage bonds due Feb. 1, 2050 at 105.461 to yield 3.356%, or a Treasuries plus 170 bps spread.

Initial price talk was in the 190 bps over Treasuries area.

The notes were first priced in a $500 million offering on Jan. 6 at 99.347 to yield 3.686%, or a spread of Treasuries plus 140 bps. The total outstanding is now $1.2 billion.

The bookrunners were Barclays, BofA Securities, Citigroup Global Markets Inc., Mizuho Securities USA Inc., BNP Paribas Securities Corp. and BNY Mellon Capital Markets LLC.

Southern California Edison is an electric utility company based in Rosemead, Calif.

Newmont prices $1 billion

Newmont sold $1 billion of 2.25% 10-year senior notes (Baa2/BBB/) at a spread of Treasuries plus 135 bps, according to a market source and an FWP filing with the Securities and Exchange Commission.

Initial price talk was at the 155 bps spread area.

The notes were sold at 99.108 to yield 2.346%.

The notes are guaranteed by subsidiary Newmont USA Ltd.

BMO Capital Markets Corp., Goldman Sachs and J.P. Morgan were the joint bookrunners.

The issuer is a gold and copper producer based in Denver.

John Deere raises $1 billion

John Deere Capital priced $1 billion of senior medium-term notes (A2/A/A) in two parts during the session, according to a market source and FWP filings.

A $500 million tranche of 1.2% notes due April 6, 2023 priced at 99.976 to yield 1.208% and a spread of 53 bps over Treasuries.

Initial talk was in the Treasuries plus 75 bps area.

The company sold $500 million of 1.75% notes due March 9, 2027 at 99.934 to yield 1.76%, or a Treasuries plus 88 bps spread.

Initial talk was in the 110 bps to 115 bps spread area.

Deutsche, HSBC Securities (USA) Inc., J.P. Morgan and RBC Capital Markets, LLC were the bookrunners.

John Deere Capital is a financing arm of Moline, Ill.-based farm equipment supplier Deere & Co.

eBay prices $1 billion

eBay priced $1 billion of senior notes (Baa1/BBB+/BBB) in two tranches, according to a market source and an FWP filing.

eBay priced $500 million of 1.9% five-year notes at 99.782 to yield 1.946%, or a spread of Treasuries plus 120 bps.

The notes were initially talked to price at the 140 bps spread area.

A $500 million tranche of 2.7% 10-year notes priced at 99.843 to yield 2.718%, or a Treasuries plus 170 bps spread.

Initial talk was in the Treasuries plus 190 bps area.

BofA Securities, Credit Suisse, Wells Fargo, Deutsche and J.P. Morgan were the bookrunners.

eBay is a San Jose, Calif.-based online commerce company.

Delta Air sells certificates

Delta Air Lines sold $1 billion of pass-through certificates in two parts on Wednesday, according to a market source and an FWP filing.

Delta Air Lines priced $795,894,000 of class AA certificates (Aa3/AA-/) at par to yield 2%, tighter than initial talk in the 2.25% to 2.375% area.

The company sold $204,106,000 of class A certificates (A3/A-/) at par to yield 2.5%.

Initial guidance was in the 2.625% to 2.75% area.

The securities have a final legal distribution date of Dec. 10, 2029.

Morgan Stanley & Co. LLC, Credit Suisse, BofA Securities, Goldman Sachs, Banco Bilbao Vizcaya Argentaria, SA, Deutsche, PNC Capital Markets LLC, Standard Chartered Bank, AmeriVet Securities, Inc., Natixis Securities Americas LLC were the bookrunners.

The commercial airline is based in Atlanta.

J.M. Smucker brings two tranches

J.M. Smucker sold $800 million of notes (Baa2/BBB/) in two tranches, according to a market source and an FWP filing.

The company priced $500 million of 2.375% 10-year notes at 99.876 to yield 2.389% and a spread of Treasuries plus 140 bps.

Initial price talk was in the Treasuries plus 165 bps area.

A $300 million tranche of 3.55% 30-year notes at a Treasuries plus 195 bps spread, tighter than talk in the 225 bps area.

The notes priced at 99.615 to yield 3.571%.

BofA Securities, J.P. Morgan, BMO and PNC were the bookrunners.

Orrville, Ohio-based Smucker makes fruit spreads, coffee, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk and other food products.

BP Capital taps issue

BP Capital Markets America priced a $750 million add-on to its 3% notes due Feb. 24, 2050 (A1/A-) at a spread of 145 bps over Treasuries, according to an FWP filing.

The notes were sold at 98.731 to yield 3.065%.

Morgan Stanley was the bookrunner.

The issue originally was priced on Feb. 19 in a $1.25 billion offering at 98.344 to yield 3.085% and a spread of Treasuries plus 107 bps. The total outstanding is now $2 billion.

The notes are guaranteed by parent company BP plc.

BP Capital Markets America is a Chicago-based aviation and marine fuels provider and subsidiary of the London-based oil and gas company.

Avery Dennison sells notes

Avery Dennison priced $500 million of 2.65% 10-year senior notes (Baa2/BBB/) at a spread of 170 bps over Treasuries, according to a market source and an FWP filing.

Initial price talk was in the Treasuries plus 187.5 bps area.

Pricing was at 99.57 to yield 2.699%.

BofA Securities, Citigroup, J.P. Morgan and HSBC were the bookrunners.

Avery Dennison is a Pasadena, Calif.-based maker of pressure-sensitive materials, retail branding and information products and organization and identification products

Waste Connections prints

Waste Connections priced an upsized $500 million 3.05% 30-year senior notes (Baa2/BBB+/BBB+) on Wednesday at a spread of 150 bps over Treasuries, according to a market source an an FWP filing.

Initial price talk was at the Treasuries plus 180 bps area.

The deal was upsized from $400 million.

The notes priced at 98.525 to yield 3.126%.

BofA Securities, J.P. Morgan, MUFG, Wells Fargo, CIBC World Markets Corp., Fifth Third Securities, Inc., PNC and BBVA Securities Inc. were the bookrunners.

The natural gas transmission and production company is based in Houston.

Healthcare Realty taps market

Healthcare Realty Trust sold $300 million of 2.4% 10-year senior notes (Baa2/BBB/BBB+) at 99.665 to yield 2.438%, or a spread of 145 bps over Treasuries, according to a market source and an FWP filing.

Initial price talk was in the Treasuries plus 175 bps area.

U.S. Bancorp, Jefferies LLC and Barclays were the bookrunners.

Healthcare Realty is a Nashville-based real estate investment trust that owns, leases, manages and develops properties associated with outpatient healthcare services.

L3Harris sells floaters

L3Harris Technologies priced $250 million of senior floating-rate notes due March 10, 2023 at par to yield Libor plus 75 bps, according to a market source and an FWP filing.

The notes (Baa3/BBB/BBB) priced on top of guidance in the Libor plus 75 bps area.

Deutsche and U.S. Bancorp were the bookrunners.

L3Harris is an aerospace and defense technology company based in Melbourne, Fla.

World Bank prices $3.5 billion

The International Bank for Reconstruction and Development, or World Bank, priced $3.5 billion of 0.75% five-year sustainability bonds (Aaa/AAA/AAA) on Wednesday at mid-swaps plus 10 bps, or a Treasuries plus 15.65 bps spread, according to a market source.

The global notes were initially talked to price at the mid-swaps plus 10 bps area.

J.P. Morgan, HSBC, Morgan Stanley and Nomura Securities International, plc were the bookrunners.

The global development financing cooperative is based in Washington, D.C.

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