Fox, Citibank, Air Lease, American Homes 4 Rent, Alberta, Kommuninvest, KfW tap primary

By Cristal Cody

Tupelo, Miss., Jan. 15 – Fox Corp. tapped the high-grade primary market on Tuesday with a $6.8 billion five-part offering of notes.

Proceeds from the deal will be used to pay the tax liability that will be created when the issuer’s parent predecessor company, 21st Century Fox America, Inc., spins off assets before it is acquired by Walt Disney Co.

In other investment-grade issuance, Citibank, NA priced $2.25 billion of five-year notes.

Air Lease Corp. brought $700 million of five-year medium-term notes to the primary market.

American Homes 4 Rent LP sold $400 million of 10-year senior notes.

In the sovereign, supranational and agency space, the Province of Alberta placed $1.75 billion of five-year global bonds during the session.

KfW priced $5 billion of five-year global notes.

Kommuninvest I Sverige AB also sold $1.5 billion of long three-year notes.

Elsewhere in corporate action, Western and Southern Life Insurance Co. continued to hold investor calls on Tuesday for a Rule 144A and Regulation S offering of 50-year fixed-to-floating-rate surplus notes, a source said.

In other high-grade market activity, Marsh & McLennan Cos., Inc. said in a news release on Tuesday that it closed on its previously reported $5 billion six-part offering of senior notes. The notes (Baa1/A-/) were priced on Jan. 8 on top of guidance and better than initial talk.

The Markit CDX North American Investment Grade 31 index firmed about 1 basis point to a spread of 77 bps.

Fox prices $6.8 billion

Fox (Baa2/BBB/) priced a $6.8 billion five-part offering notes on the tight side of guidance on Tuesday, according to a market source.

A $750 million tranche of 3.666% three-year notes was priced with a spread of 115 bps over Treasuries.

The company sold $1.25 billion of 4.03% five-year notes at a Treasuries plus 150 bps spread.

A $2 billion tranche of 4.709% 10-year notes priced with a 200 bps over Treasuries spread.

Fox sold $1.25 billion of 5.476% notes due 2039 at a 250 bps over Treasuries spread.

In the final tranche, the company priced $1.55 billion of 5.576% 30-year bonds with a spread of 250 bps over Treasuries.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC were the arrangers.

The mass media company is based in New York City.

Citibank brings $2.25 billion

Citibank priced $2.25 billion of 3.65% five-year notes (A1/A+/) on Tuesday at a Treasuries plus 117 bps spread, according to a market source.

The notes were initially talked to price in the Treasuries plus 130 bps area with guidance tightened to the Treasuries plus 120 bps area, plus or minus 3 bps.

Citigroup was the bookrunner.

Citibank is a Sioux Falls, S.D.-based commercial and consumer banking products and services company.

Air Lease sells $700 million

Air Lease priced $700 million of 4.25% five-year medium-term notes (/BBB/BBB/Kroll: A-) on Tuesday at 98.997 to yield 4.475%, or a spread of 195 bps over Treasuries, according to a market source and an FWP filed with the Securities and Exchange Commission.

Price guidance on the notes was in the Treasuries plus 200 bps area, plus or minus 5 bps. The notes were initially talked in the Treasuries plus 215 bps area.

The bookrunners were BMO Capital Markets Corp., J.P. Morgan Securities LLC, BofA Merrill Lynch, SunTrust Robinson Humphrey Inc., ABN Amro Inc., BNP Paribas Securities Corp., Citigroup, Fifth Third Securities Inc., ICBC Standard Bank plc, Goldman Sachs, KeyBanc Capital Markets Inc., Lloyds Securities Inc., Loop Capital Markets LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, MUFG, RBC Capital Markets LLC, Regions Securities LLC, Santander Investment Securities Inc. and SG Americas Securities, LLC.

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

American Homes 4 Rent prints

American Homes 4 Rent sold $400 million of 4.9% 10-year senior notes (Baa3/BBB-/) at a spread of 225 bps over Treasuries on Tuesday, according to an FWP filing with the SEC.

The notes priced at 99.486 to yield 4.965%.

JPMorgan Securities, BofA Merrill Lynch, Morgan Stanley, BBVA Securities Inc., Citigroup and Wells Fargo Securities LLC were the bookrunners.

American Homes is an Agoura Hills, Calif.-based real estate investment trust.

KfW prices tighter than talk

KfW (Aaa/AAA/AAA) priced $5 billion of 2.625% five-year global notes on Tuesday at 99.667 and a spread of mid-swaps plus 9 bps, or 17.3 bps over Treasuries, according to a market source and an FWP filing with the SEC.

The notes due Feb. 28, 2024 were initially talked to price with a spread in the mid-swaps plus 11 bps area, with guidance later tightened to the 10 bps area.

Barclays, BMO and Citigroup were the bookrunners.

KfW is a government-backed bank based in Frankfurt.

Alberta sells $1.75 billion

Alberta (Aa1/AA/) priced $1.75 billion of 2.95% five-year global bonds on Tuesday at mid-swaps plus 37 bps, or a Treasuries plus 45.9 bps spread, according to a market source and an FWP filing with the SEC.

The notes were initially talked to print in the mid-swaps plus mid-to-high 30 bps area.

The issue priced at 99.866 to yield 2.979%.

CIBC World Markets Corp., JPMorgan, RBC Capital Markets and TD Securities (USA) LLC were the bookrunners.

Kommuninvest in primary

Kommuninvest (Aaa/AAA/) sold $1.5 billion of 2.625% notes due Sept. 15, 2022 on Tuesday at mid-swaps plus 12 bps, or a spread of Treasuries plus 21.7 bps, according to an informed source.

The notes were initially talked to price in the mid-swaps plus 15 bps area with guidance later firmed to mid-swaps plus 12 bps.

HSBC Securities (USA) Inc., JPMorgan, Nordea Bank AB and TD Securities were the bookrunners for the Rule 144A and Regulation S offering.

Kommuninvest is an Orebro, Sweden-based company that offers funding to municipalities of Sweden.

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