Investment-grade primary market active; Schwab, J.M. Smucker, Public Service price notes

By Cristal Cody

Tupelo, Miss., Dec. 4 – Several issuers tapped the high-grade primary market on Monday with new bond offerings.

Charles Schwab Corp. came with $1.5 billion of senior notes in two tranches.

J.M. Smucker Co. brought $800 million of fixed-rate notes in two parts.

Public Service Electric & Gas Co. sold $350 million of 30-year secured medium-term notes.

Also, Vornado Realty Trust priced $300 million of split-rated series M cumulative redeemable perpetual preferred stock.

In other bond offerings, Westpac Banking Corp., Canada’s province of New Brunswick and Baker Hughes, a GE Co., LLC were marketing U.S. dollar-denominated notes.

About $30 billion of deal volume is expected by market participants for the week.

The Markit CDX North American Investment Grade 29 index tightened about 1 basis point on Monday to head out at a spread of 52 bps.

Schwab prices $1.5 billion

Charles Schwab priced $1.5 billion of senior notes (A2/A/A) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.

The company priced $800 million of 2.65% five-year notes at 99.84 to yield 2.683%, or a spread of Treasuries plus 53 bps.

The $700 million tranche of 3.2% notes due 2028 priced at 99.85 to yield 3.217%. The notes were sold with a Treasuries plus 83 bps spread.

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

Charles Schwab is a San Francisco-based company that provides wealth management, securities brokerage, banking, asset management, custody and financial advisory services.

Smucker prices $800 million

J.M. Smucker sold $800 million of fixed-rate notes (Baa2/BBB/) in two tranches on Monday, according to an FWP filing with the SEC.

The company priced $300 million of 2.2% two-year notes at 99.922 to yield 2.24% and a Treasuries plus 43 bps spread.

J.M. Smucker sold $500 million of 3.375% 10-year notes at 99.966 to yield 3.379%, or Treasuries plus 100 bps.

BofA Merrill Lynch, J.P. Morgan Securities LLC, BMO Capital Markets Corp. and PNC Capital Markets LLC were the bookrunners.

Orrville, Ohio-based Smucker makes fruit spreads, coffee, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk and other food products.

Public Service in primary

Public Service Electric & Gas (A2/BBB+/A-) priced $350 million of 3.6% 30-year series L secured medium-term notes on Monday at 99.927, according to an FWP filed with the SEC.

MUFG, Scotia Capital (USA) Inc., Wells Fargo Securities, LLC, Credit Suisse Securities and BofA Merrill Lynch were the bookrunners.

The electric and gas utility is based in Newark, N.J.

Vornado sells $300 million

Vornado Realty Trust priced $300 million of $25.00-par 5.25% split-rated series M cumulative redeemable perpetual preferred stock (Baa3/BBB-/BB+) on Monday, according to an FWP filed with the SEC.

The company sold 12 million shares at $25.00 per share. The deal has an over-allotment option of 1.8 million shares.

The liquidation preference is $25.00 per preferred.

BofA Merrill Lynch, Morgan Stanley, UBS Securities LLC and Wells Fargo Securities were the bookrunners.

The company plans to list the preferreds on the New York Stock Exchange under the ticker symbol “VNOPrM.”

Vornado is an equity real estate investment trust based in New York.

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