Cenovus Energy, Banco Santander price; ABN Amro reopens notes; credit spreads tighten

By Cristal Cody

Tupelo, Miss., April 4 – Pricing action stayed steady over Tuesday’s session with at least four issuers tapping the U.S. high-grade bond market.

Cenovus Energy Inc. priced a $2.9 billion three-part offering of U.S. dollar senior notes.

Banco Santander, SA brought $2.5 billion of second ranking senior debt securities in three tranches to the primary market.

ABN Amro Bank NV sold $1.25 billion in reopenings of two bonds on Tuesday.

Also on Tuesday, Stanford University planned to price 31-year taxable bonds. Final pricing details were not available by press time.

The Markit CDX North American Investment Grade index firmed 1 basis point to close on Tuesday at a spread of 66 bps.

Cenovus Energy sells $2.9 billion

Cenovus Energy priced $2.9 billion in three tranches of U.S. dollar senior notes (Ba2/BBB/BBB-) on Tuesday, according to a market source and a company release.

The company sold $1.2 billion of 4.25% 10-year notes at a spread of Treasuries plus 190 bps.

Cenovus Energy priced $700 million of 5.25% 20-year notes at a Treasuries plus 225 bps spread.

The $1 billion tranche of 5.4% 30-year notes priced with a spread of 240 bps over Treasuries.

All three tranches priced on the tight side of guidance.

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

Proceeds will be used to finance a portion of the company’s C$17.7 billion acquisition of Western Canada assets from ConocoPhillips Co. The acquisition is expected to close in the second quarter of 2017. If the deal does not close on or before March 22, 2018, the notes will be callable at 101.00.

Cenovus Energy is a Calgary, Alta.-based Canadian oil company.

Banco Santander prices

Banco Santander sold $2.5 billion of second ranking senior debt securities (/BBB+/A-) in three tranches on Tuesday, according to a market source.

The $500 million five-year floating-rate tranche priced at Libor plus 156 bps.

Banco Santander sold $1 billion of 3.5% five-year fixed-rate notes at a spread of Treasuries plus 168 bps.

The company priced $1 billion of 4.25% 10-year fixed-rate notes at a Treasuries plus 200 bps spread.

BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Santander Investment Securities Inc. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes, according to a 424B5 filed Wednesday with the Securities and Exchange Commission.

Madrid-based Banco Santander provides bank services.

Amro reopens notes

ABN Amro Bank priced $1.25 billion in reopenings of two bonds (A1/A/A+) on Tuesday, according to a market source.

The company priced $600 in a tap of its two-year floating-rate notes at Libor plus 54 bps. The total outstanding now is $1.35 billion.

ABN AMRO sold $650 million in an add-on to its 2.1% two-year fixed-rate notes at a spread of Treasuries plus 85 bps. The issue now has $1.65 billion outstanding.

Credit Suisse Securities, Goldman Sachs & Co., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC and RBC Capital Markets were the bookrunners.

ABN Amro Bank is a Dutch bank based in Amsterdam.

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