Ford, National Bank, Waste Management, Citizens, Markel, NextEra price; credit spreads flat

By Cristal Cody

Tupelo, Miss., Oct. 30 – High-grade issuers kicked the week off with a busy round of bond deals on Monday.

Ford Motor Credit Co. LLC came with a $2 billion three-tranche offering of senior notes.

National Bank of Canada sold $1.25 billion of three-year notes in two parts.

Waste Management, Inc. priced $750 million of 10-year senior guaranteed notes.

Citizens Bank, NA sold $750 million of three-year senior notes.

Markel Corp. brought $600 million of senior notes in two tranches to the primary market.

NextEra Energy Capital Holdings Inc. priced $550 million of 60-year fixed-to-floating-rate guaranteed junior subordinated debentures.

Also, Colgate-Palmolive Co. placed $400 million of five-year medium-term notes.

A strong deal pipeline is expected for the week with about $25 billion to $30 billion of total weekly supply forecasted by market sources.

The Markit CDX North American Investment Grade 29 index closed mostly unchanged at a spread of 53 basis points.

Ford Credit prices $2 billion

Ford Motor Credit priced $2 billion of senior notes (Baa2/BBB/BBB) in three tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.

Ford Motor Credit sold $250 million of three-year floating-rate notes at par to yield Libor plus 43 bps.

The company priced $1 billion of 2.343% three-year fixed-rate notes at par to yield a spread of Treasuries plus 65 bps.

Ford also sold $750 million of 3.815% 10-year notes at par with a Treasuries plus 145 bps spread.

Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, BofA Merrill Lynch, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC were the bookrunners.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based automaker Ford Motor Co.

National Bank sells notes

National Bank of Canada sold $1.25 billion of three-year fixed- and floating-rate senior medium-term notes (A1/A/A+) on Monday, according to a market source.

National Bank of Canada brought $250 million of three-year floating-rate notes to the primary market at Libor plus 33 bps.

The company priced $1 billion of 2.2% three-year notes at a spread of Treasuries plus 55 bps.

Citigroup Global Markets Inc., National Bank Financial Inc. and UBS Securities LLC were the bookrunners.

National Bank of Canada is a commercial bank based in Montreal.

Waste Management sells notes

Waste Management sold $750 million of 3.15% 10-year senior guaranteed notes (Baa2/A-/BBB+) on Monday at 99.982 to yield 3.152%, according to a market source and an FWP filing with the SEC.

The notes priced at a spread of Treasuries plus 78 bps, on the tight side of guidance in the Treasuries plus 80 bps area.

Barclays, J.P. Morgan Securities LLC and BofA Merrill Lynch were the bookrunners.

The notes are guaranteed by Waste Management Holdings, Inc.

Proceeds will be used to redeem the company’s $590 million of 6.1% senior notes due 2018.

Waste Management is a waste management environmental services company based in Houston.

Citizens Bank prints

Citizens Bank priced $750 million of 2.25% three-year senior notes (Baa1/A-/BBB+) on Monday at a spread of 60 bps over Treasuries, according to a market source and a company press release.

The notes were initially talked to price in the low 70 bps spread area over Treasuries.

Credit Suisse Securities (USA), J.P. Morgan Securities, Morgan Stanley, Mizuho Securities USA and Citizens Capital Markets, Inc. were the bookrunners.

Proceeds will be used for general corporate purposes.

The bank is based in Providence, R.I.

Markel brings two tranches

Markel priced $600 million of senior notes (Baa2/BBB/BBB+) in two tranches on Monday, according to a market source and FWP filings with the SEC.

The company sold $300 million of 3.5% 10-year notes at 99.783 to yield 3.526%, or a spread of Treasuries plus 115 bps.

Markel priced $300 million of 4.3% 30-year notes with a Treasuries plus 145 bps spread. The notes priced at 99.383 to yield 4.337%.

Both tranches priced on the tight side of guidance.

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

Proceeds will be used for general corporate purposes.

Markel is a financial holding company based in Glen Allen, Va.

NextEra sells fixed/floaters

NextEra Energy Capital Holdings priced $550 million of 4.8% series M guaranteed junior subordinated debentures due Dec. 1, 2077 (Baa2/BBB/BBB) at par on Monday, according to a market source and an FWP filing with the SEC.

The bonds were initially talked to price with a coupon in the 5% area.

The debentures will have a fixed rate until Dec. 1, 2027 and then will convert to a floating rate of Libor plus 240.9 bps.

The bookrunners were Barclays, Credit Suisse Securities (USA), Goldman Sachs, J.P. Morgan Securities, Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc. and SMBC Nikko Securities America, Inc.

The debentures are guaranteed by NextEra Energy Capital Holdings’ parent company, NextEra Energy, Inc.

The company will add the proceeds from the sale to its general funds, which may then be used to repay about $559 million of debt securities due in 2044 and 2067.

NextEra Energy is an energy company based in Juno Beach, Fla.

Colgate-Palmolive prices

Colgate-Palmolive sold $400 million of 2.25% five-year series H medium-term notes (Aa3/AA-/) on Monday at a spread of Treasuries plus 32 bps, according to a market source.

The notes priced on the tight side of guidance in the Treasuries plus 35 bps area.

Citigroup Global Markets, HSBC Securities (USA) Inc. and Morgan Stanley were the bookrunners.

The consumer products company is based in New York City.

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