Schwab, Consumers Energy, Boeing, Aflac, Southwestern Public price bonds; OeKB on tap

By Cristal Cody

Tupelo, Miss., Oct. 29 – U.S. and Canadian high-grade issuers priced more than $4 billion of bonds on Monday in one of the busiest sessions seen over the back half of October.

Charles Schwab Corp. came with $1.1 billion of senior notes in two tranches that priced on the tight side of guidance.

Consumers Energy Co. sold $850 million of first mortgage bonds in two parts.

Boeing Co. brought $700 million of senior notes in two tranches to the primary market.

Aflac Inc. sold $550 million of 30-year senior notes on Monday.

Also, Southwestern Public Service Co. priced $300 million of 30-year first mortgage bonds.

In the Canadian primary market, Dollarama Inc. and ATCO Ltd. also sold notes on Monday.

Last week, high-grade corporate volume totaled $6 billion for the week.

Syndicate sources expect about $15 billion to $20 billion of issuance this week.

Coming up on Tuesday, Oesterreichische Kontrollbank AG is expected to bring a benchmark-sized dollar-denominated offering of five-year global notes to the primary market.

In other action ahead on Wednesday, Duke Energy Carolinas LLC (Aa2/A) will hold a roadshow and fixed income investor calls for a benchmark-sized dollar-denominated offering of green first and refunding mortgage bonds, according to a market source.

BofA Merrill Lynch, BNP Paribas Securities Corp., MUFG, Scotia Capital (USA) Inc. and TD Securities (USA) LLC are the arrangers.

A Rule 144A and Regulation S deal also is expected from Bank Nederlandse Gemeenten NV (Aaa/AAA/AA+), which held fixed income investor calls on Friday for an offering of three-year sustainable bonds, a source said.

BNP Paribas Securities, Citigroup Global Markets Inc. and TD Securities are the arrangers.

Sporadic issuance is predicted in November due to the mid-term elections, the Federal Reserve’s monetary policy meeting and the Veterans Day and Thanksgiving Day holidays, sources report.

The Markit CDX North American Investment Grade 31 index eased nearly 1 basis point to close at a spread of 71 bps.

Charles Schwab prices

Charles Schwab priced $1.1 billion of senior notes (A2/A/A) in two tranches on the tight side of guidance on Monday, according to a market source.

The $500 million of 3.55% notes due Feb. 1, 2024 priced at a Treasuries plus 67 bps spread.

A $600 million tranche of 4% notes due Feb. 1, 2029 priced with a 97 bps spread over Treasuries.

BofA Merrill Lynch, Citigroup, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

Charles Schwab is a San Francisco-based company that provides wealth management, securities brokerage, banking, asset management, custody and financial advisory services.

Consumers Energy sells bonds

Consumers Energy sold $850 million of first mortgage bonds (Aa3/A/A+) in two parts on Monday, according to an FWP filing with the Securities and Exchange Commission.

A $300 million tranche of 3.8% 10-year bonds priced at 99.752 to yield 3.83%, or a spread of 73 bps over Treasuries.

The company sold $550 million of 4.35% bonds due April 15, 2049 at 99.618 to yield 4.373% and with a Treasuries plus 103 bps spread.

Citigroup, JPMorgan, KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., MUFG and SMBC Nikko Securities America, Inc. were the bookrunners.

Consumers Energy is an electric and gas utility based in Jackson, Miss.

Boeing brings $700 million

Boeing priced $700 million of senior notes (A2/A/A) in two tranches on Monday, according to an FWP filing.

Boeing sold $350 million of 3.45% 10-year notes at 97.541 to yield 3.747%, or Treasuries plus 67 bps.

The company placed $350 million of 3.85% 30-year notes at 93.333 to yield 4.245%. The bonds priced with a spread of 92 bps over Treasuries.

Morgan Stanley, BofA Merrill Lynch, Wells Fargo Securities LLC, Mizuho Securities, MUFG and SMBC Nikko Securities were the bookrunners for the 10-year notes.

Morgan Stanley, Citigroup, JPMorgan, Credit Suisse, Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC were the bookrunners for the 30-year notes.

Boeing is a Chicago-based aerospace company.

Aflac taps primary

Aflac sold $550 million of 4.75% 30-year senior notes (A3/A-) on Monday at 99.34 to yield 4.792%, or a spread of 145 bps over Treasuries, according to a market source and an FWP filing.

The notes priced tighter than initial talk in the Treasuries plus 155 bps area.

The bookrunners were Goldman Sachs, BofA Merrill Lynch, Mizuho Securities, SMBC Nikko Securities, Wells Fargo, Morgan Stanley and MUFG.

The Columbus, Ga.-based company provides supplemental health and life insurance.

Southwestern Public prints

Southwestern Public Service priced $300 million of 4.4% 30-year first mortgage bonds at 99.355 to yield 4.439% during the session, according to an FWP filing.

The bonds (A3/A/A-) priced with a spread of 110 bps over Treasuries.

KeyBanc Capital Markets Inc., PNC Capital Markets LLC, Scotia Capital and Wells Fargo were the bookrunners.

Amarillo, Texas-based Southwestern Public Service generates, purchases, distributes and sells electricity in portions of Texas and New Mexico.

OeKB plans deal

Looking to Tuesday’s session, OeKB (Aa1/AA+) plans to price a benchmark-sized dollar-denominated offering of five-year global notes, according to a market source.

The notes due Nov. 7, 2023 were initially talked to price in the mid-swaps plus 9 bps area.

BofA Merrill Lynch, Citigroup, Goldman Sachs and HSBC Securities (USA) Inc. are the lead managers.

The Vienna, Austria-based company provides financial and information services to Austria’s export industry and the capital market.

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