Boston Scientific, CSX, Weyerhaeuser, Florida Power, Sweden price; Woodside holds roadshow

By Cristal Cody

Tupelo, Miss., Feb. 21 – Boston Scientific Corp. led deal action in the high-grade bond market on Thursday with a $4.3 billion five-part offering of senior notes that priced on the tight side of guidance.

Also during the session, CSX Corp. sold $1 billion of new and reopened senior notes.

Weyerhaeuser Co. priced $750 million of long 10-year senior notes following a round of investor calls earlier in the week.

Florida Power & Light Co. brought $600 million of 30-year first mortgage bonds to the primary market.

In other issuance on Thursday, Sweden priced $2 billion of three-year bonds at mid-swaps flat, tighter than initial talk in the mid-swaps plus 2 basis points area.

“We had strong demand from both central banks and bank treasuries, which provided us with a very tight price,” Anna Sjulander, head of funding at the Swedish National Debt Office, said in a news release.

In other pricing action, Credit Agricole SA raised $1.25 billion in an offering of perpetual deeply subordinated additional tier 1 resettable notes in the previous session, according to a market source and a news release on Thursday.

“Credit Agricole seized favourable market conditions to issue its first AT1 notes since January 2016,” the company said. “The new AT1 issue bears the lowest reset spread amongst Credit Agricole's outstanding AT1 securities.”

The deal attracted about 250 investors and had a final order book of about $4.75 billion.

Meanwhile, Woodside Finance Ltd. began a two-day roadshow and fixed-income investor calls on Thursday for a dollar-denominated offering of notes.

Also on Thursday, RMP International Inc. (Baa3/BBB/) held fixed-income investor calls, according to a market source. BofA Merrill Lynch, Santander Investment Securities Inc. and Wells Fargo Securities LLC are the arrangers.

High-grade corporate volume totals more than $26 billion week to date, beating market forecasts of about $20 billion to $25 billion of supply.

For the week ended Wednesday, Lipper US Fund Flows reported inflows of $1.95 billion for corporate investment-grade funds, up from $1.89 billion of inflows reported in the previous week.

The Markit CDX North American Investment Grade 31 index softened about 1 bp to end the day at a spread of 62 bps.

New issues brought to the market this week were quoted earlier mixed in secondary trading, a source said.

CBS Corp.’s $500 million of 4.2% guaranteed senior notes due June 1, 2029 (Baa2/BBB/BBB) priced on Wednesday at a spread of 167 bps over Treasuries. They softened about 1 bp after issuance.

Prudential Financial, Inc.’s $1 billion 4.35% of medium-term notes due Feb. 25, 2050 were wrapped around issuance in the secondary market. The notes (Baa1/A/) priced Wednesday at a spread of 137 bps over Treasuries.

Boston Scientific prices

Boston Scientific priced $4.3 billion of senior notes (Baa2/BBB-/BBB) in five tranches on Thursday, according to a market source and an FWP filed with the Securities and Exchange Commission.

An $850 million five-year tranche of 3.45% notes priced at 99.94 to yield 3.463% and a spread of Treasuries plus 95 bps.

The company sold $850 million of 3.75% seven-year notes at 99.724 to yield 3.795%. The notes priced with a spread of 120 bps over Treasuries.

In the 10-year tranche, the company priced $850 million of 4% notes at 99.664 to yield 4.041%, or a spread of 135 bps over Treasuries.

Boston Scientific priced $750 million of 4.55% 20-year notes at 99.44 to yield 4.593%. The notes were sold with a spread of 155 bps over Treasuries.

Finally, the company sold $1 billion of 4.7% 30-year notes at a spread of Treasuries plus 170 bps. The notes priced at 99.314 to yield 4.743%.

The tranches came on the tight side of guidance and better than initial talk.

Barclays, BofA Merrill Lynch, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC were the bookrunners.

Boston Scientific is a medical device maker based in Marlborough, Mass.

CSX brings two tranches

CSX priced $1 billion of senior notes (Baa1/BBB+/) in two tranches on Thursday, according to an FWP filing with the SEC.

The company sold $600 million in an add-on to its 4.25% senior notes due March 15, 2029 at 102.904 to yield 3.891%, or a spread of Treasuries plus 120 bps.

CSX originally sold $350 million of the notes on Nov. 7, 2018 at 99.641 to yield 4.294%, or Treasuries plus 108 bps. The total outstanding is now $950 million.

A new $400 million tranche of 4.5% 30-year notes priced at 99.655 to yield 4.521% and a spread of 148 bps over Treasuries.

Credit Suisse Securities (USA) LLC, JPMorgan and Morgan Stanley & Co. LLC were the bookrunners.

The transportation company is based in Jacksonville, Fla.

Weyerhaeuser sells notes

Weyerhaeuser priced $750 million of 4% senior notes due Nov. 15, 2029 (Baa2/BBB) on Thursday at a spread of 137.5 bps over Treasuries, according to an FWP filed with the SEC.

The notes priced at 99.462 to yield 4.063%.

Goldman Sachs, JPMorgan, BofA Merrill Lynch, Morgan Stanley, MUFG and Wells Fargo were the bookrunners.

Weyerhaeuser is a timber company based in Federal Way, Wash.

Florida Power prices

Florida Power & Light priced $600 million of 3.99% 30-year first mortgage bonds (Aa2/A/AA-) at a 95 bps over Treasuries spread on Thursday, according to an FWP filing with the SEC.

The notes priced at 99.947 to yield 3.993%.

BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Mizuho Securities USA Inc., SMBC Nikko Securities America, Inc., Citigroup, Fifth Third Securities Inc., RBC Capital Markets LLC and Wells Fargo were the bookrunners.

Florida Power & Light is a Juno Beach, Fla.-based electric utility.

Sweden raises $2 billion

The Kingdom of Sweden (Aaa/AAA/AAA) priced $2 billion of 2.5% bonds due Feb. 28, 2022 on Thursday at mid-swaps flat, or a spread of Treasuries plus 8.65 bps, according to a market source and a news release.

The bonds were initially talked to print with a spread in the mid-swaps plus 2 bps area.

The issue priced at 99.75 to yield 2.587%.

Barclays, Citigroup and Deutsche Bank were the bookrunners of the Rule 144A and Regulation offering.

The order book totaled $3.3 billion with 50 investors in the deal.

Credit Agricole sells issue

Credit Agricole priced $1.25 billion of 6.875% perpetual deeply subordinated additional tier 1 resettable notes (/BBB-/) with a spread of 431.9 bps over Treasuries, according to a market source and a news release on Thursday.

Initial price talk for the Rule 144A and Regulation S offering was in the 7.125% area.

The rate on the notes will reset every five years at the then five-year swap rate plus 431.9 bps.

BofA Merrill Lynch, BMO Capital Markets Corp., Credit Agricole Corporate and Investment Bank, Citigroup, JPMorgan and Standard Chartered Bank were the bookrunners.

Credit Agricole is an investment banking cooperative based in Montrouge, France.

Woodside shops deal

Woodside Finance (Baa1/BBB+/) started a two-day roadshow and fixed-income investor calls in the United States and Asia on Thursday for a dollar-denominated offering of notes, according to a market source.

BofA Merrill Lynch, Citigroup and UBS Securities LLC are the lead managers of the Rule 144A and Regulation S offering.

Woodside Finance is a Perth, Australia-based financing company and subsidiary of Woodside Petroleum Ltd.

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