Daimler, American Express, Westpac, Caterpillar, Ventas, Huntington price; busy primary eyed

By Cristal Cody

Tupelo, Miss., Feb. 19 – Investment-grade corporate issuers priced $10 billion of bonds over Tuesday’s session.

Daimler Finance North America LLC brought $3 billion of senior notes in four tranches to the primary market.

American Express Co. sold $2 billion of senior notes in two parts.

Westpac Banking Corp. priced $1.75 billion of five-year fixed- and floating-rate notes.

Caterpillar Financial Services Corp. raised $1.6 billion in a two-part offering of medium-term notes.

Ventas Realty LP priced a $700 million two-part offering of senior notes.

Huntington National Bank priced $500 million of three-year senior notes.

Also, Mednax, Inc. priced a $500 million add-on to its split-rated 6.25% senior notes due Jan. 15, 2027 (Ba2/BBB-/) during the session in an offering upsized from $200 million.

In other activity on Tuesday, Weyerhaeuser Co. (Baa2/BBB/) held fixed-income investor calls, a market source said. BofA Merrill Lynch, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the arrangers.

The primary market is expected to remain busy on Wednesday, a source said.

About $20 billion to $25 billion of investment-grade issuance was forecast by syndicate sources for the holiday-shortened market week.

“As we approach the tail end of the earnings reporting season, the strong pace of issuance will likely continue with recent trends of companies no longer waiting to file 10-Ks before issuing bonds,” according to a BofA Merrill Lynch report released on Tuesday. “At the same time, given the significant rally in spreads this year and still solid market tone, it's possible that some March deals might get pulled forward to the second half of February. With relatively light Yankee financial issuance in January, we could see some catch-up activity in that pipeline as well.”

Investment-grade issuers priced more than $38 billion of bonds last week, beating forecasts of about $25 billion to $30 billion of volume.

The Markit CDX North American Investment Grade 31 index firmed 2 basis points on Tuesday to end at a spread of 61 bps.

Daimler prices $3 billion

Daimler Finance North America priced $3 billion of senior notes (A2/A/) in four tranches on Tuesday, according to a market source.

The company priced $700 million of three-year floating-rate notes at Libor plus 88 bps.

A $1.2 billion tranche of 3.4% three-year fixed-rate notes priced with a spread of 98 bps over Treasuries.

Daimler sold $600 million of 3.65% five-year notes with a Treasuries plus 123 bps spread.

A $500 million offering of 4.3% 10-year notes were sold with a Treasuries plus 168 bps spread.

BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Citigroup Global Markets Inc., JPMorgan and Mizuho Securities USA LLC were the bookrunners.

Daimler Finance is a Wilmington, Del.-based financing arm of Daimler North America Corp.

Amex sells $2 billion

American Express priced $2 billion of senior notes (A3/BBB+/A) in two tranches on Tuesday, according to a market source and FWP filings with the Securities and Exchange Commission.

The company sold $750 million of 3% two-year notes at 99.90 to yield 3.052%, or a spread of Treasuries plus 55 bps.

A $1.25 billion tranche of 3.4% five-year notes priced at a Treasuries plus 95 bps spread, or 99.886 to yield 3.425%.

Both tranches priced on top of guidance and better than initial talk.

Citigroup, Credit Suisse Securities (USA) LLC, Goldman Sachs and Mizuho were the bookrunners.

The credit card services company is based in New York.

Westpac brings $1.75 billion

Westpac Banking priced $1.75 billion of notes due Feb. 26, 2024 (Aa3/AA-/AA-) in two tranches on Tuesday, according to a market source.

The company sold $500 million of five-year floating-rate notes at Libor plus 77 bps.

Westpac priced $1.25 billion of 3.3% five-year fixed-rate notes at a spread of Treasuries plus 85 bps.

BofA Merrill Lynch, Citigroup, JPMorgan and Westpac Banking Corp. were the bookrunners.

The Sydney, Australia-based bank plans to use the proceeds for general corporate purposes.

Caterpillar sells $1.6 billion

Caterpillar Financial Services priced $1.6 billion of medium-term notes (A3/A/A) in two parts on Tuesday, according to a market source and FWP filings with the SEC.

A $750 million tranche of floating-rate notes due Aug. 26, 2020 priced at par to yield Libor plus 25 bps. The notes printed in line with guidance and better than initial talk in the Libor plus 35 bps area.

Caterpillar sold $850 million of 2.95% three-year notes at 99.952 to yield 2.967%. The notes priced at a spread of Treasuries plus 50 bps, on the tight side of guidance in the 52 bps area and tighter than initial price talk in the 62.5 bps spread area.

Barclays, JPMorgan and SG Americas Securities LLC were the bookrunners.

Nashville-based Caterpillar Financial Services is a financing arm of Caterpillar Inc.

Ventas sells two tranches

Ventas Realty sold a $700 million two-part offering of senior notes (Baa1/BBB+/BBB+) on Tuesday, according to a market source and an FWP filing with the SEC.

The company priced $400 million of 3.5% five-year notes at 99.878 to yield 3.525%, or a spread of 105 bps over Treasuries. The notes priced on the tight side of guidance in the 110 bps spread area, plus or minus 5 bps.

The $300 million tranche of 4.875% 30-year notes came on top of guidance at a Treasuries plus 190 bps spread, or 99.77 to yield 4.889%.

Citigroup, Barclays, Credit Suisse and RBC Capital Markets LLC were the bookrunners.

Ventas, Inc. is the guarantor.

The real estate investment trust for housing and health-care properties is based in Chicago.

Huntington National prints

Huntington National Bank (A3/A-/A-) sold $500 million of 3.125% three-year senior notes at a spread of 68 bps over Treasuries on Tuesday, according to a market source.

The notes priced better than guidance in the Treasuries plus 72 bps area, plus or minus 2 bps.

BofA Merrill Lynch, Huntington Investment Co., RBC and UBS Securities LLC were the bookrunners.

Huntington National Bank is part of Columbus, Ohio-based bank holding company Huntington Bancshares Inc.

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