Dow Chemical, Standard Chartered, Discovery, WestRock, Air Lease, ASB, Japan Bank price

By Cristal Cody

Tupelo, Miss., May 16 – High-grade issuers priced nearly $8 billion of bonds on Thursday, bringing week-to-date volume to more than $29 billion.

During the session, Dow Chemical Co. priced $2 billion of senior notes in three tranches to fund the redemption of outstanding debt.

“The current interest rate environment provides us with a window to opportunistically manage and extend our debt maturity profile,” Howard Ungerleider, president and chief financial officer of Dow Chemical, said in a news release announcing the deal. “While we expect this offering to be net neutral to our financial debt, it is a prudent step to maintaining a strong and flexible capital structure across the economic cycle.”

Also on Thursday, Standard Chartered Bank AG tapped the primary market with $2 billion of senior fixed-to-floating-rate notes in two tranches.

Discovery Communications, LLC sold $1.5 billion of fixed-rate senior notes in two parts.

WestRock Co. subsidiary WRKCo Inc. brought a $1 billion two-tranche offering of fixed-rate guaranteed senior notes.

Air Lease Corp. placed $750 million of seven-year medium-term notes.

ASB Bank Ltd. priced $500 million of five-year notes.

In addition, Japan Bank for International Cooperation sold $2.5 billion of five-year guaranteed bonds.

In other activity, NRG Energy Inc. held fixed income investor calls on Thursday for a dollar-denominated five-year senior secured note offering.

Primary action has been heavy over the past three sessions after issuers stayed on the sidelines Monday.

Nearly $12 billion of notes priced on Wednesday, while more than $10 billion of corporate bonds priced on Tuesday.

Deal volume this week has been led by Waste Management, Inc.’s $4 billion billion five-tranche offering of notes priced Tuesday to help finance an acquisition of Advanced Disposal Services, Inc.

About $25 billion to $35 billion of high-grade supply was forecast for the week by market sources.

The Markit CDX North American Investment Grade 32 index firmed more than 1 basis point on Thursday to end at a spread of 62 bps.

Dow Chemical prices $2 billion

Dow Chemical priced $2 billion of senior notes (Baa2/BBB/BBB+) in three tranches in a Rule 144A and Regulation S private placement offering on Thursday, according to a market source.

The company sold $500 million of 3.15% five-year notes at a spread of 102 bps over Treasuries.

A $750 million tranche of 3.625% seven-year notes were placed with a Treasuries plus 135 bps spread.

Dow Chemical also sold $750 million of 4.8% 30-year notes with a spread of 200 bps over Treasuries.

The notes priced on the tight side of guidance.

Bookrunners were Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and MUFG.

The specialty chemicals company and subsidiary of Dow Inc. is based in Midland, Mich.

Standard Chartered sells notes

Standard Chartered Bank (A1/A/A+) priced $2 billion of senior fixed-to-floating-rate notes in two tranches on Thursday, according to a market source.

A $1 billion tranche of 3.785% fixed-to-floating-rate notes due May 1, 2025 priced at a Treasuries plus 160 bps spread. The notes will reset to a floating rate of Libor plus 156 bps after the initial fixed-rate period.

Standard Chartered sold $1 billion of 4.305% fixed-to-floating-rate notes due May 21, 2030 at a spread of Treasuries plus 190 bps. The notes will reset to a floating rate of Libor plus 191 bps after the initial fixed-rate period.

The notes priced better than initial talk.

BofA Securities, Inc., Barclays, BNP Paribas Securities Corp., Citigroup Global Markets and Standard Chartered Bank were the lead managers.

Standard Chartered Bank is part of London-based banking and financial services company Standard Chartered plc.

Discovery raises $1.5 billion

Discovery Communications priced $1.5 billion of fixed-rate senior notes (Baa3/BBB-/BBB-) in two tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.

A $750 million tranche of 4.125% 10-year notes priced at 99.83 to yield 4.146%. The notes priced with a Treasuries plus 175 bps spread.

Discovery also sold $750 million of 5.3% 30-year notes at 99.392 to yield 5.341%, or a spread of 250 bps over Treasuries.

Barclays, J.P. Morgan Securities LLC, RBC Capital Markets, LLC, BNP Paribas Securities, Mizuho Securities USA LLC, BofA Securities, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC were the bookrunners.

The notes will be guaranteed by parent company Discovery, Inc., parent subsidiary Scripps Networks Interactive, Inc. and any future domestic subsidiaries of the parent that guarantees obligations under its revolving credit facility.

Discovery Communications is a global media company based in Silver Spring, Md.

WestRock prices $1 billion

WRKCo priced $1 billion of fixed-rate guaranteed senior notes (Baa2/BBB/) in two tranches on Thursday, according to an FWP filed with the SEC.

The company sold $500 million of 3.9% notes due June 1, 2028 at 99.976 to yield 3.903%, or a spread of 150 bps over Treasuries.

A $500 million tranche of 4.2% notes due June 1, 2032 priced at 99.969 to yield 4.203%. The notes priced with a spread of Treasuries plus 180 bps.

BofA Securities, Wells Fargo Securities, LLC, J.P. Morgan Securities, Mizuho Securities, Scotia Capital (USA) Inc., TD Securities (USA) LLC, BB&T Capital Markets, MUFG, Citigroup Global Markets, HSBC Securities, Rabo Securities USA, Inc., SunTrust Robinson Humphrey, Inc. and SMBC Nikko Securities America, Inc. were the bookrunners.

The notes will be fully and unconditionally guaranteed by WestRock Co., WestRock MWV, LLC and WestRock RKT, LLC.

WestRock is an Atlanta, Ga.-based paper and packaging manufacturer.

Air Lease prints

Air Lease priced $750 million of 3.75% seven-year medium-term notes (BBB/BBB/Kroll: A-) on Thursday at 98.85 to yield 3.939%, or a spread of 165 bps over Treasuries, according to an FWP filed with the SEC.

Bookrunners were BofA Securities, J.P. Morgan Securities, Mizuho Securities, RBC Capital Markets, BMO Capital Markets Corp., Loop Capital Markets LLC, MUFG, SG Americas Securities, LLC, SunTrust Robinson Humphrey, Wells Fargo Securities, BNP Paribas Securities, Fifth Third Securities Inc., ABN Amro Securities (USA) LLC, Citigroup Global Markets, Citizens Capital Markets, Inc., Goldman Sachs, ICBC Standard Bank plc, KeyBanc Capital Markets Inc., NatWest Markets Securities Inc., Regions Securities LLC, Santander Investment Securities Inc., TD Securities, Arab Banking Corp. BSC, Commonwealth Bank of Australia and Morgan Stanley & Co. LLC.

Air Lease is a Los Angeles-based aircraft leasing company.

ASB Bank in primary

ASB Bank (A1/AA-/AA-) sold $500 million of 3.125% five-year notes at a spread of 100 bps over Treasuries on Thursday, according to a market source.

The notes priced on the tight side of guidance in the Treasuries plus 105 bps area.

Commonwealth Bank of Australia, Citigroup Global Markets, HSBC Securities and Morgan Stanley were the bookrunners of the Rule 144A and Regulation S offering.

ASB Bank is an Auckland, New Zealand-based subsidiary of the Commonwealth Bank of Australia.

Japan Bank brings $2.5 billion

Japan Bank for International Cooperation priced $2.5 billion of 2.5% five-year guaranteed bonds (A1/A+) on Thursday at 99.706 to yield 2.563%, or a spread of mid-swaps plus 38 bps, according to a market source and an FWP filing with the SEC.

The bonds due May 23, 2024 were initially talked to price in the mid-swaps plus 40 bps area with guidance later revised to the mid-swaps plus 38 bps area.

Barclays, Daiwa Capital Markets Europe Ltd., Goldman Sachs International and J.P. Morgan Securities plc were the bookrunners.

The notes will be guaranteed by Japan.

The bonds are non-callable except in the event of certain tax changes.

The financial institution is based in Tokyo.

NRG Energy plans deal

NRG Energy held fixed income investor calls on Thursday for an investment-grade senior secured note offering, according to a market source.

The company intends to price dollar-denominated five-year notes (Baa3/BBB-) in a Rule 144A transaction.

The deal size is estimated at $600 million and includes senior secured first-lien notes due 2024, according to a S&P Global Ratings release.

BofA Securities, Citigroup Global Markets, Credit Suisse Securities, J.P. Morgan Securities and Morgan Stanley are the arrangers.

NRG Energy is a power company based in Princeton, N.J. and Houston, Texas.

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