Toyota, Waste Connections sell notes; Manitoba prints $1 billion; Jefferies, Avalon on tap

By Cristal Cody

Tupelo, Miss., April 9 – High-grade deal volume on Tuesday included offerings from Toyota Motor Credit Corp., Waste Connections, Inc. and the Province of Manitoba.

Toyota Motor Credit priced $2 billion of medium-term notes in two tranches.

Waste Connections priced $500 million of 10-year senior notes.

Manitoba sold $1 billion of five-year global debentures on Tuesday.

A $12 billion five-part deal from Saudi Arabian Oil Co. took much of the market’s focus during the session, sources report.

Also on Tuesday, Jefferies Group LLC and subsidiary Jefferies Group Capital Finance Inc. offered senior fixed-to-floating-rate notes.

Elsewhere, Dublin aircraft leasing company Avolon Holdings Ltd. is holding fixed-income investor calls Tuesday through Wednesday for a possible Rule 144A and Regulation S bond offering, according to market sources and a company news release.

Moody’s Investors Service said in a release on Monday that it is reviewing for upgrade the company’s Ba1 corporate rating, the Ba2 senior ratings of Avolon Holdings Funding Ltd. and Park Aerospace Holdings Ltd. and the high-grade Baa3 senior secured rating of Avolon TLB Borrower 1 (US) LLC.

“This follows Avolon's announcement that it may pursue a benchmark senior notes issuance after engaging in a series of calls with investors this week,” Moody’s said.

Just under $2 billion of investment-grade issues priced on Monday.

About $15 billion to $20 billion of deal volume, not including Saudi Arabian Oil’s offering, is expected for the week, sources report.

The Markit CDX North American Investment Grade 32 index headed out mostly unchanged from Monday at a spread of 60 basis points.

Toyota prints $2 billion

Toyota Motor Credit (Aa3/AA-/A) priced $2 billion of medium-term notes in two parts on Tuesday, according to a market source and FWP filings with the Securities and Exchange Commission.

Toyota sold $1.25 billion of floating-rate notes due Oct. 9, 2020 on top of guidance at par to yield Libor plus 15 bps.

A $750 million tranche of 2.65% three-year notes came on the tight side of guidance at a spread of 38 bps over Treasuries. The notes priced at 99.937 to yield 2.672%.

Citigroup Global Markets Inc., Mizuho Securities USA LLC, MUFG and RBC Capital Markets, LLC were the bookrunners.

Toyota Motor Credit is a Torrance, Calif.-based financing arm and subsidiary of Toyota Motor Corp.

Waste Connections prices

Waste Connections priced $500 million of 3.5% 10-year senior notes (Baa2/BBB+/BBB+) on Tuesday at 99.738 to yield 3.531%, or a spread of Treasuries plus 103 bps, according to a market source and an FWP filing with the SEC.

The notes priced on the tight side of guidance in the Treasures plus 105 bps area and better than initial talk in the 125 bps spread area.

BofA Merrill Lynch, J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities LLC, CIBC World Markets Corp. and PNC Capital Markets LLC were the bookrunners.

Waste Connections is a solid waste services company with headquarters in the Woodlands, Texas, and Vaughan, Ont., that services markets in the United States and Canada.

Manitoba raises $1 billion

Manitoba (Aa2/A+/) sold $1 billion of 2.6% five-year global debentures on Tuesday at a spread of mid-swaps plus 26 bps, or Treasuries plus 29.75 bps, according to an FWP filing with the SEC.

The bonds due April 16, 2024 priced at 99.991 to yield 2.602%.

Initial price talk was in the mid-swaps plus 28 bps area.

BMO Capital Markets Corp., National Bank of Canada Financial Inc., Scotia Capital (USA) Inc. and TD Securities (USA) LLC were the bookrunners.

The debentures are non-callable.

Jefferies plans deal

Jefferies Group (Baa2/BBB/BBB) and subsidiary Jefferies Group Capital Finance Inc. are marketing senior fixed-to-floating-rate notes due April 30, 2034 with an initial 6% coupon, according to a 424B5 filing with the SEC on Tuesday.

The rate on the notes will reset April 30, 2023 at a floating rate of Libor plus 200 bps.

Jefferies LLC is the bookrunner.

The offering is expected to settle on April 30.

Jefferies is an investment bank based in New York.

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