WestJet Airlines, Westar Energy, Sovran tap market; Emera notes mixed; Under Armour eases

By Cristal Cody

Eureka Springs, Ark., June 13 – Investment-grade supply is expected to stay light over the week with investors and traders focused on central bank meetings, including the outcome of the Federal Reserve’s two-day policy meeting that ends on Wednesday.

Monday’s primary action included deals from WestJet Airlines Ltd., Westar Energy, Inc. and Sovran Acquisition LP.

WestJet Airlines priced $400 million of senior notes due 2021.

Westar Energy sold $350 million of 10-year green first mortgage bonds.

Sovran Acquisition sold $600 million of 10-year senior notes.

In the secondary market, Emera US Finance LP’s senior notes priced on Thursday were unchanged to modestly softer in late-afternoon trading.

Under Armour, Inc.’s new 3.25% senior notes due 2026 edged wider over the day.

The Markit CDX North American Investment Grade index closed 3 basis points softer at a spread of 82 bps.

WestJet prices $400 million

WestJet Airlines priced $400 million of 3.5% senior notes due 2021 on Monday with a spread of 240 bps over Treasuries, according to a market source and a company news release.

The notes (Baa2/BBB-/) were talked at Treasuries plus 250 bps, plus or minus 10 bps.

Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC were the bookrunners.

WestJet intends to use the proceeds for general corporate purposes, which includes the purchase of aircraft.

The company is a Calgary, Alta.-based airline.

Westar sells green bonds

Westar Energy sold $350 million of 2.55% 10-year green first mortgage bonds (A2/A) with a spread of 95 bps over Treasuries on Monday, according to a market source.

BNP Paribas Securities Corp., J.P. Morgan Securities LLC and MUFG were the bookrunners.

Proceeds will be used for renewable energy generation projects, including the Western Plains Wind Farm in Kansas, and for short-term debt and/or held as cash and cash equivalents, according to a 424B5 filed with the Securities and Exchange Commission.

Westar Energy is a Topeka, Kan.-based electric utility.

Sovran raises $600 million

Sovran Acquisition sold $600 million of 3.5% 10-year senior notes at 99.447 to yield 3.566%, according to an FWP filing on Monday with the Securities and Exchange Commission.

The notes priced with a spread of 195 bps over Treasuries.

The bookrunners were Wells Fargo Securities, LLC, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc., BB&T Capital Markets, HSBC Securities (USA) Inc. and Jefferies LLC.

The notes are fully and unconditionally guaranteed by Sovran Self Storage, Inc.

Sovran Acquisition, which does business as Uncle Bob’s Self Storage LP, manages self-storage properties in the United States.

Emera mixed

Emera US Finance’s 3.55% notes due 2026 traded late afternoon at 187 bps bid, 184 bps offered, according to a market source.

The company sold $750 million of the notes on Thursday at Treasuries plus 190 bps.

Emera’s 4.75% notes due 2046 traded wrapped around issuance at 230 bps bid, 226 bps offered.

The bonds were sold in a $1.25 billion tranche on Thursday at 230 bps over Treasuries.

Emera US Finance is a subsidiary of Halifax, N.S.-based energy and services company Emera Inc.

Under Armour eases

Under Armour’s 3.25% notes due 2026 were seen going out at 161 bps bid, 159 bps offered in the secondary market, a source said.

The company sold $600 million of the bonds on Wednesday at a spread of 160 bps over Treasuries.

Under Armour is a Baltimore-based developer, marketer and distributor of brand performance apparel, footwear and accessories.

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