Bond supply strong; Synchrony, Delta, Life Storage, Pinnacle price; AXIS, BNG eye deals

By Cristal Cody

Tupelo, Miss., Nov. 28 – Several issuers tapped the high-grade primary bond market on Tuesday, while others held investor calls in preparation for deals.

Synchrony Financial priced $1 billion of 10-year senior notes.

Also, Deutsche Bank AG sold $1 billion of split-rated fixed-to-fixed rate reset subordinated tier 2 notes.

Delta Air Lines Inc. came with $450 million of split-rated three-year notes on Tuesday.

Life Storage LP sold $450 million of 10-year senior notes during the session.

Physicians Realty LP priced $350 million of 10-year senior notes.

Pinnacle West Capital Corp. placed $300 million of three-year senior notes.

In other action, AXIS Specialty Finance plc held fixed-income investor calls on Tuesday for a dollar-denominated offering of 10-year senior notes.

Coming up on Wednesday, Bank Nederlandse Gemeenten NV plans to hold fixed-income investor calls for an offering of three-year notes.

Deal supply for the week is expected in the $30 billion area by market sources.

The Markit CDX North American Investment Grade 29 index tightened about 1 basis point to end at a spread of 52 bps.

Synchrony sells $1 billion

Synchrony Financial priced $1 billion of 3.95% 10-year senior notes (/BBB-BBB-) on Tuesday at 99.714 to yield 3.985% and a Treasuries plus 165 bps spread, according to an FWP filing with the Securities and Exchange Commission.

Barclays, Mizuho Securities USA LLC and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

Synchrony is a consumer financial services company based in Stamford, Conn.

Deutsche split-rated notes

Deutsche Bank priced $1 billion of 4.875% split-rated fixed-to-fixed-rate-reset subordinated tier 2 notes due Dec. 1, 2032 at 99.976 to yield 4.878%, or a spread of Treasuries plus 255 bps, on Tuesday, according to an FWP filing with the SEC.

The notes (Ba2/BB+/BBB) will reset Dec. 1, 2027 at the five-year mid-swap rate plus 2.553%.

Deutsche Bank Securities Inc. was the bookrunner.

Proceeds will be used for general corporate purposes and to further strengthen the company’s regulatory capital base.

Deutsche Bank is a banking and financial services company based in Frankfurt.

Delta Air Lines sells notes

Delta Air Lines sold $450 million of 2.6% split-rated three-year notes on Tuesday at a spread of 78 bps over Treasuries, according to an FWP filed with the SEC.

The notes (Baa3/BB+/BBB-) priced at 99.937 to yield 2.622%.

The bookrunners were Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities, BofA Merrill Lynch, U.S. Bancorp Investments, Inc., BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Fifth Third Securities, Inc. and Wells Fargo Securities LLC.

Proceeds will be used for general corporate purposes.

Delta is a commercial airline based in Atlanta.

Life Storage prices

Life Storage sold $450 million of 3.875% 10-year senior notes on Tuesday at a spread of 160 bps over Treasuries, according to an FWP filing with the SEC.

The notes (Baa2/BBB/) priced at 99.523 to yield 3.933%.

Wells Fargo Securities, Citigroup Global Markets, SunTrust Robinson Humphrey, Inc., Jefferies LLC and U.S. Bancorp Investments were the bookrunners.

The notes are fully and unconditionally guaranteed by parent company Life Storage, Inc.

Proceeds will be used to repay $225 million owed under the company’s $325 million term note due June 4, 2020 and amounts owed under its line of credit that matures Dec. 10, 2019.

Life Storage is a Williamsville, N.Y.-based real estate investment trust that owns and manages self-storage properties.

Physicians Realty brings notes

Physicians Realty sold $350 million of 3.95% senior notes due Jan. 15, 2028 (Baa3/BBB-/) on Tuesday at 99.779 to yield 3.976%, or a spread of Treasuries plus 165 bps, according to an FWP filing with the SEC.

The bookrunners were J.P. Morgan Securities LLC, Credit Agricole Securities and Jefferies.

The notes are guaranteed by Physicians Realty Trust.

Proceeds will be used to repay outstanding debt under the company’s revolving credit facility and for general corporate purposes.

Milwaukee-based Physicians Realty is a self-managed health care real estate investment trust.

Pinnacle West prints

Pinnacle West Capital priced $300 million of 2.25% three-year senior notes on Tuesday at a spread of 43 bps over Treasuries, according to an FWP filed with the SEC.

The notes (A3/BBB+/A-) priced at 99.937 to yield 2.27%.

Barclays, Mizuho Securities, SunTrust Robinson Humphrey and Wells Fargo Securities were the bookrunners.

Proceeds will be used for general corporate purposes, including the repayment at or before maturity of $125 million term loan due Dec. 31, 2017.

Pinnacle West is a Phoenix-based holding company that receives revenue from subsidiary electric utility Arizona Public Service Co.

AXIS holds investor calls

AXIS Specialty Finance (Baa1/A-/) is holding fixed-income investor calls on Tuesday for its previously announced dollar-denominated offering of up to $350 million of 10-year senior notes, according to a market source.

The deal is expected to price on Wednesday.

Credit Suisse Securities, Barclays, Citigroup Global Markets and HSBC Securities (USA) Inc. are the bookrunners.

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

Proceeds will be used to repay or redeem the company’s 2.65% senior notes due April 1, 2019 and for general corporate purposes.

The company plans to list the notes on the Bermuda Stock Exchange.

AXIS is a Pembroke, Bermuda-based provider of specialty lines insurance and treaty reinsurance with shareholders’ equity.

Bank Nederlandse eyes sale

Bank Nederlandse Gemeenten (Aaa/AAA/AA+) plans to price a dollar-denominated offering of three-year notes in a Rule 144A and Regulation S transaction, according to a market source.

The company will hold fixed-income investor calls on Wednesday.

Daiwa Capital Markets America Inc., RBC Capital Markets, LLC and TD Securities (USA) LLC are the arrangers.

The banking services company is based in The Hague.

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