AT&T, BB&T, Experian, AEP, AXIS, Wisconsin Power price notes; credit spreads mostly unchanged

By Cristal Cody

Tupelo, Miss., Dec. 3 – Investment-grade deal volume picked up on Tuesday with several issuers pricing new bonds.

AT&T Inc. sold $1,265,000,000 of registered global senior notes due March 1, 2050.

Branch Banking & Trust Co. priced $1.25 billion of five-year senior notes.

Experian Finance plc followed up fixed income investor calls on Monday with a $750 million offering of long 10-year senior notes.

AEP Texas Inc. sold $450 million of senior notes due Jan. 15, 2050 during the session.

AXIS Specialty Finance plc also brought $425 million of reset junior subordinated notes due Jan. 15, 2040 to the primary market on the heels of a roadshow in the previous session.

In addition on Tuesday, Wisconsin Electric Power Co. priced $300 million of five-year notes.

Issuance was light at the start of the week. Charter Communications, Inc. priced a $1.3 billion add-on to its 4.8% senior secured notes due March 1, 2050 (Ba1/BBB-/BBB-), while Main Street Capital Corp. sold a $75 million tap of its 5.2% notes due May 1, 2024 (/BBB/) on Monday.

Week to date, supply totals nearly $6 billion.

About $15 billion to $20 billion of deal volume is expected by syndicate sources for the week.

The Markit CDX North American Investment Grade 33 index softened modestly to end at a spread of 51.9 basis points on Tuesday.

AT&T sells global notes

AT&T priced $1,265,000,000 of 4.25% global senior notes due March 1, 2050 (Baa2/BBB/A-) at par to yield 4.25% during the session, according to an FWP filing with the Securities and Exchange Commission.

Deutsche Bank AG, Taipei Branch, HSBC Bank (Taiwan) Ltd., Morgan Stanley Taiwan Ltd. and Standard Chartered Bank (Taiwan) Ltd. were the bookrunners.

AT&T is a Dallas-based telecommunications company.

Branch Banking & Trust prices

Branch Banking & Trust priced $1.25 billion of 2.15% five-year senior notes on Tuesday at a spread of Treasuries plus 65 bps, according to a market source.

The notes (A1/A/A+) were initially talked to print with a spread in the Treasuries plus 75 bps area.

BofA Securities, Inc., BB&T Capital Markets, RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. were the bookrunners.

The bank is a subsidiary of Winston-Salem, N.C.-based financial services company BB&T Corp.

Experian in primary

Experian Finance priced $750 million of 2.75% senior notes due March 8, 2030 (Baa1/A-/) at a spread of 115 bps over Treasuries, compared to initial talk in the Treasuries plus 130 bps area, according to a market source.

HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Santander Investment Securities Inc. were the active bookrunners.

Experian Finance is a subsidiary of Dublin, Ireland consumer credit reporting agency Experian plc.

AEP Texas prints

AEP Texas sold $450 million of 3.45% senior notes due Jan. 15, 2050 on Tuesday at a spread of 130 bps over Treasuries, according to an FWP filing.

The notes (Baa1/A-/) priced at 99.532 to yield 3.475%.

BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., MUFG and Scotia Capital (USA) Inc. were the bookrunners.

AEP Texas is a Corpus Christi, Texas-based electric company.

AXIS sells subordinated notes

AXIS Specialty Finance priced $425 million of reset junior subordinated notes due Jan. 15, 2040 (Baa2/BBB/) at par to yield 4.9% on Tuesday, according to a market source and an FWP filing.

Initial price talk was in the 5.125% area.

The rate on the notes will reset Jan. 15, 2030 and every five years to a rate of Treasuries plus 318.6 bps.

Wells Fargo and Citigroup Global Markets Inc. were the bookrunners.

The notes are fully and unconditionally guaranteed by parent company AXIS Capital Holdings Ltd.

AXIS is a Pembroke, Bermuda-based insurance and reinsurance company with U.S. operations based in Alpharetta, Ga.

Wisconsin Electric prices

Also on Tuesday, Wisconsin Electric Power priced $300 million of 2.05% five-year notes at a spread of 52 bps over Treasuries, according to a market source and an FWP filing.

The debentures (A2/A-/A+) were initially talked to print in the 70 bps spread area.

The bonds priced at 99.981 to yield 2.054%.

BNP Paribas Securities, Mizuho Securities USA Inc., RBC Capital Markets and Scotia Capital were the bookrunners.

Wisconsin Electric Power is a Milwaukee-based subsidiary of WEC Energy Group, Inc.

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