Royal Bank of Canada, Aqua America, Cantor Fitzgerald, Penske price notes; Omers eyes primary

By Cristal Cody

Tupelo, Miss., April 24 – Investment-grade corporate issuers priced nearly $4 billion of notes over Wednesday’s session.

Royal Bank of Canada tapped the dollar-denominated primary market with $1.5 billion of medium-term senior notes in two tranches.

Aqua America, Inc. brought $900 million of fixed-rate senior notes in two parts.

Cantor Fitzgerald, LP priced an upsized $600 million of five-year senior notes.

Also, Penske Truck Leasing Co., LP and PTL Finance Corp. priced $700 million of five-year senior notes.

Meanwhile, Omers Finance Trust is holding fixed income investor calls for a Rule 144A and Regulation S offering of dollar-denominated five-year notes, according to a market source.

In other market action, Royal Bank of Canada announced it also priced a debut €500 million offering of five-year green bonds, while Morgan Stanley sold €1.5 billion of five-year notes.

Dollar-denominated high-grade volume week to date totals more than $6 billion.

On Tuesday, Rogers Communications Inc., Kimberly-Clark Corp., Marubeni Corp. and Lloyds Bank Corporate Markets plc priced $2.55 billion of notes.

On Monday, the only offering in the high-grade market was a $450 million preferred stock deal from KeyCorp.

About $15 billion to $25 billion of supply this week is expected on average from market sources.

The Markit CDX North American Investment Grade 32 index softened to a spread of 58 basis points, more than 1 bp wider on the day.

Royal Bank of Canada notes

Royal Bank of Canada sold $1.5 billion of medium-term senior notes (A2/A/AA) in two tranches on Wednesday, according to FWP filings with the Securities and Exchange Commission.

A $500 million tranche of three-year floating-rate notes priced at par to yield Libor plus 47 bps.

Royal Bank of Canada sold $1 billion of 2.8% notes due April 29, 2022 at 99.957 to yield 2.815%, or a Treasuries plus 53 bps spread.

RBC Capital Markets, LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC were the bookrunners.

Royal Bank of Canada is a Toronto-based financial services company.

Aqua America in primary

Aqua America priced a $900 million offering of fixed-rate senior notes (Baa2/A/) in two tranches on the tight side of guidance, according to a market source.

A $400 million tranche of 3.566% 10-year notes priced at a spread of 105 bps over Treasuries.

The company sold $500 million of 4.276% 30-year notes at a Treasuries plus 135 bps spread.

RBC Capital Markets, Goldman Sachs & Co. LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities were the bookrunners.

Aqua America is a Bryn Mawr, Pa.-based water utility.

Penske Truck sells notes

Penske Truck Leasing and PTL Finance placed $700 million of 3.45% senior notes due July 1, 2024 (Baa2/BBB/BBB+) at a spread of 118 bps over Treasuries on Wednesday, according to a market source.

The notes priced on the tight side of guidance and better than initial talk in the Treasuries plus 135 bps area.

BofA Merrill Lynch, J.P. Morgan Securities, PNC Capital Markets LLC, Santander Investment Securities Inc. and Wells Fargo Securities were the bookrunners.

The global transportation services provider is based in Reading, Pa.

Cantor Fitzgerald prices

Also on Wednesday, Cantor Fitzgerald priced an upsized $600 million of 4.875% five-year senior notes (/BBB-/BBB-) at a spread of Treasuries plus 262.5 bps, according to a market source.

Initial price talk was in the Treasuries plus 287.5 bps area. The deal was upsized from $500 million.

Bookrunners were Citigroup Global Markets Inc., Cantor Fitzgerald & Co., Goldman Sachs and PNC Capital Markets.

Cantor Fitzgerald is a financial services firm based in New York.

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