Hospitality Properties, Kommunalbanken price deals; Nederlandse, Oceaneering plan notes

By Cristal Cody

Tupelo, Miss., Jan. 30 – Deal action stayed steady over Tuesday’s session, though remains light with many companies still in earnings blackout periods.

Hospitality Properties Trust tapped the primary market with a $400 million offering of 12-year senior notes.

Western Digital Corp. priced $2.3 billion of split-rated notes.

Also, Providence St. Joseph Health Obligated Group priced $350 million of long 30-year taxable bonds.

In addition on Tuesday, Kommunalbanken AS sold $700 million of three-year floating-rate notes on the tight side guidance.

Looking ahead to supply on Wednesday, Nederlandse Waterschapsbank NV intends to price a $500 million offering of floating-rate notes.

Also, offshore oil and gas engineering products and services company Oceaneering International, Inc. is expected to bring split-rated 10-year senior notes to the primary market following a roadshow on Tuesday.

About $20 billion of high-grade issuance is expected by market sources for the week.

The Markit CDX North American Investment Grade 29 index eased about 1 basis point on Tuesday to a spread of 47 bps.

Hospitality Properties bonds

Hospitality Properties Trust sold $400 million of 4.375% senior notes due Feb. 15, 2030 (Baa2/BBB-/) on Tuesday at 97.494 to yield 4.649%, according to a market source, news release and an FWP filing with the Securities and Exchange Commission.

The notes priced at a spread of 192 bps over Treasuries, on the tight side of guidance in the 195 bps spread area and better than initial talk in the 210 bps spread area.

Citigroup Global Markets Inc., BofA Merrill Lynch, PNC Capital Markets LLC, Regions Securities LLC and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to repay debt under the company’s revolving credit facility and for general business purposes.

The real estate investment trust is based in Newton, Mass.

St. Joseph Health prints

Providence St. Joseph Health priced $350 million of 3.93% series 2018A taxable bonds due Oct. 1, 2048 (Aa3//AA-) on Tuesday at a spread of 95 bps over Treasuries, according to a market source.

BofA Merrill Lynch and Citigroup Global Markets were the lead managers.

Providence St. Joseph Health is a Renton, Wash.-based health care system that includes Providence Health & Services and St. Joseph Health System.

Kommunalbanken prices

Kommunalbanken (Aaa/AAA/) priced $700 million of senior floating-rate notes due March 12, 2021 in a Rule 144A and Regulation S offering on Tuesday at Libor plus 4 bps, according to a market source and a stabilization notice.

The notes due March 12, 2021 were initially talked to price in the Libor plus 5 bps area.

J.P. Morgan Securities plc, Citigroup Global Markets and TD Securities (USA) LLC were the lead managers.

The stabilization period is expected to end no later than Feb. 30.

The government-funded lender to municipalities is based in Oslo.

Nederlandse plans deal

Nederlandse Waterschapsbank (Aaa/AAA/) plans to price a $500 million dollar-denominated Rule 144A and Regulation offering of floating-rate notes due Aug. 9, 2019 on Wednesday, according to a market source.

The notes were initially talked to price in the Libor plus 2 bps area.

BofA Merrill Lynch, Nomura Securities International, Inc. and RBC Capital Markets, LLC are the lead managers.

The local government funding agency is based in The Hague.

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