Keurig deal prices; Bank of America, Goldman, American Express, Fidelity among day’s issuers

By Cristal Cody

Tupelo, Miss., May 14 – Heavy supply came on Monday with high-grade issuance led by an $8 billion six-tranche deal to fund the merger between Keurig Green Mountain Inc. and Dr Pepper Snapple Group, Inc.

Also on Monday, Bank of America Corp. sold $2.25 billion of fixed-to-floating rate senior notes, while Goldman Sachs Group Inc. priced $1.5 billion of floating-rate notes.

American Express Co. priced $2 billion of senior notes in two tranches.

Fidelity National Information Services, Inc. sold $1 billion of senior notes in two parts.

In other issuance, Great-West Lifeco Inc. priced $800 million of senior notes, and Canadian Pacific Railway Co. sold $500 million of 10-year notes on Monday.

Also, Ameren Illinois Co. priced $430 million of 10-year first mortgage bonds, and San Diego Gas & Electric Co. sold $400 million of 30-year first mortgage bonds.

About $30 billion to $35 billion of investment-grade supply is expected by market sources for the week.

In other action, ASB Bank Ltd. (A1/AA-/AA-) kicked off a roadshow on Monday for a Rule 144A and Regulation S dollar-denominated offering of five-year notes, a source said.

The Auckland, New Zealand-based subsidiary of the Commonwealth Bank of Australia will hold the roadshow Monday through Thursday in Asia and from Thursday through May 24 in the U.S. market.

Coming up on Wednesday, Vodafone Group plc (Baa1/BBB+/BBB+) will begin a roadshow for a dollar-denominated multiple-tranche offering of notes via BofA Merrill Lynch, according to a market source.

The Markit CDX North American Investment Grade 30 index closed modestly softer on the day at a spread of 60 basis points.

Keurig prices $8 billion

Maple Escrow Subsidiary, Inc., a subsidiary of the parent company of Keurig Green Mountain, priced an $8 billion Rule 144A, Regulation S offering of senior notes (Baa2/BBB/) in six tranches on Monday, according to a market source.

The company sold $1.75 billion of 3.551% three-year notes at a spread of 85 bps over Treasuries.

The $2 billion tranche of 4.057% five-year notes priced at a 120 bps over Treasuries spread.

Keurig priced $1 billion of 4.417% five-year notes with a Treasuries plus 145 bps spread.

The issuer sold $2 billion of 4.597% 10-year notes at a 160 bps over Treasuries spread.

The $500 million tranche of 4.985% 20-year notes were sold with a spread of 185 bps over Treasuries.

In the final tranche, Keurig priced $750 million of 5.085% 30-year notes with a spread of Treasuries plus 195 bps.

Price talk was in the Treasuries plus 105 bps area for the 2021 notes, in the Treasuries plus 135 bps area for the 2023 notes, in the Treasuries plus 160 bps area for the 2025 notes, in the Treasuries plus 175 bps area for the 2028 notes, in the Treasuries plus 205 bps area for the 2038 notes and in the Treasuries plus 215 bps area for the 2048 notes.

BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the active bookrunners.

Keurig is a Waterbury, Vt.-based personal beverage system company.

Bank of America sells notes

Bank of America priced $2.25 billion of 3.499% fixed-to-floating rate senior notes due May 17, 2022 (A3/A-/A) on Monday at a spread of 80 bps over Treasuries, according to a market source.

The rate on the notes will reset to Libor plus 63 bps after the initial fixed-rate period.

Initial price talk on the notes was in the Treasuries plus 100 bps area.

BofA Merrill Lynch was the bookrunner.

The financial services company is based in Charlotte, N.C.

American Express prints

American Express priced $2 billion of senior notes (A3/BBB+/A) in two tranches on Monday, according to a market source.

The company priced $800 million of three-year floating-rate notes at Libor plus 52.5 bps.

American Express sold $1.2 billion of 3.375% three-year fixed-rate notes at a spread of 68 bps over Treasuries.

Barclays, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and RBC Capital Markets LLC were the bookrunners.

The credit card services company is based in New York.

Goldman Sachs prices floaters

Goldman Sachs Group priced $1.5 billion of floating-rate notes due May 15, 2026 (A3/BBB+/A) on Monday at Libor plus 117 bps, according to a market source.

The notes were initially talked to price in the Libor plus 125 bps area.

Goldman Sachs was the bookrunner.

The financial services company is based in New York City.

Fidelity raises $1 billion

Fidelity National Information Services sold $1 billion of senior notes (Baa2/BBB/BBB) in two tranches on Monday, according to a market source and a news release.

The company sold $400 million of 4.25% notes 10-year notes at a spread of 130 bps over Treasuries. The notes priced on the tight side of guidance in the Treasuries plus 135 bps area.

Fidelity National Information sold $600 million of 4.75% 30-year notes at a 175 bps over Treasuries spread. The notes were guided to price in the Treasuries plus 180 bps area.

BofA Merrill Lynch, MUFG, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC were the active bookrunners.

The financial services technology company is based in Jacksonville, Fla.

Great-West Lifeco sells two tranches

Great-West Lifeco priced $800 million of senior notes (A+/A/) in a two-part Rule 144A and Regulation S offering on Monday, according to a market source and a news release.

The company sold $300 million of 4.047% 10-year notes at a spread of 105 bps over Treasuries on the tight side of guidance.

Great-West Lifeco priced $500 million of 4.581% 30-year notes on top of guidance with a Treasuries plus 145 bps spread.

The notes were brought to market via issuer Great-West Lifeco Finance 2018, LP and are guaranteed by Great-West Lifeco Inc.

J.P. Morgan Securities, RBC Capital Markets, Wells Fargo Securities, BMO Capital Markets Corp. and BMO Nesbitt Burns Inc. were the bookrunners.

Great-West Lifeco is a Winnipeg, Man.-based insurance and financial services holding company.

Canadian Pacific Railway prices

Canadian Pacific Railway sold $500 million of 4% 10-year notes on Monday at a spread of 102 bps over Treasuries, according to an FWP filed with the Securities and Exchange Commission.

The notes priced at 99.908 to yield 4.011%.

Morgan Stanley & Co. LLC, Barclays, Wells Fargo Securities, Citigroup Global Markets, HSBC Securities and BofA Merrill Lynch were the bookrunners.

The notes are guaranteed by Canadian Pacific Railway Ltd.

The railroad operator is based in Calgary, Alta.

Ameren Illinois sells bonds

Ameren Illinois priced $430 million of 3.8% 10-year first mortgage bonds (A1/A/) at a spread of Treasuries plus 82 bps on Monday, according to an FWP filing with the SEC.

The bonds were sold at 99.91 to yield 3.811%.

J.P. Morgan Securities, Morgan Stanley, U.S. Bancorp Investments Inc., Wells Fargo Securities and SMBC Nikko Securities America, Inc. were the bookrunners.

Ameren Illinois is a subsidiary of St. Louis-based electric and natural gas company Ameren Corp.

San Diego Gas & Electric prints

San Diego Gas & Electric sold $400 million of 4.15% 30-year first mortgage bonds on Monday at 99.558 to yield 4.176%, according to an FWP filing with the SEC.

The bonds (Aa2/A+/AA-) priced with a spread of 105 bps over Treasuries.

The bookrunners were Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities, Wells Fargo Securities and Samuel A. Ramirez & Co. Inc.

The San Diego-based gas and electric utility is a subsidiary of Sempra Energy.

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