Walmart sells $16 billion notes; supply heavy; RBS, EQT, Marvell, UBS, BofA print bonds

By Cristal Cody

Tupelo, Miss., June 20 – Walmart Inc. beat market deal size forecasts with a $16 billion nine-part sale of senior notes on Wednesday.

The offering surpassed initial market expectations of about $10 billion of notes.

More than $24 billion of corporate bonds were priced during session. Other corporate issuers on Wednesday included Royal Bank of Scotland Group plc, EQT Midstream Partners, LP, Marvell Technology Group Ltd., UBS AG, London Branch, Bank of America Corp., AIG Global Funding and Xcel Energy Inc.

Crown Castle International Corp. subsidiaries also were offering $1 billion of senior secured tower revenue notes (Baa3/BBB-/BBB-) in a Rule 144A and Regulation S transaction.

In other supply, Finnvera plc priced $1 billion of five-year notes tighter than guidance.

More than $41 billion of bonds have priced week to date, with $31 billion just from Wal-Mart’s deal and Bayer AG’s $15 billion eight-part offering of senior notes on Monday.

About $35 billion to as much as $50 billion of volume is expected by market sources for the week.

The Markit CDX North American Investment Grade 30 index ended mostly unchanged at a spread of 63 basis points.

Walmart brings nine tranches

Walmart priced $16 billion of senior notes (Aa2/AA/AA) in nine tranches on Wednesday, according to a market source.

The company sold $750 million of two-year floaters at Libor plus 4 bps and $1.25 billion of 2.85% two-year fixed-rate notes at a spread of Treasuries plus 30 bps.

The $750 million tranche of three-year floaters priced at Libor plus 23 bps, while the $1.75 billion of 3.125% three-year fixed-rate notes were placed at a Treasuries plus 45 bps spread.

The $2.75 billion of 3.4% five-year notes came at a 60 bps spread over Treasuries.

A $1.5 billion tranche of 3.55% seven-year notes priced at a Treasuries plus 70 bps spread.

Walmart sold $2.75 billion of 3.7% 10-year notes with a Treasuries plus 80 bps spread.

A $1.5 billion 3.95% 20-year tranche of notes priced at a spread of 95 bps over Treasuries.

The final $3 billion of 4.05% 30-year bonds priced at a Treasuries plus 105 bps spread.

Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, HSBC Securities (USA) Inc. and Wells Fargo Securities LLC were the bookrunners.

The discount retailer is based in Bentonville, Ark.

RBS prices $2 billion

Royal Bank of Scotland Group (Baa3/BBB-/BBB+) priced a $2 billion offering of six-year fixed-rate/floating-rate and floating-rate notes on Wednesday, according to a market source.

The $750 million of six-year floaters were sold at Libor plus 155 bps.

The bank priced $1.25 billion of 4.519% six-year fixed-to-floating-rate notes at a spread of Treasuries plus 172 bps. The notes will convert to a floating rate in 2023.

NatWest Markets Securities Inc., BofA Merrill Lynch, Citigroup Global Markets, Goldman Sachs & Co. LLC and Wells Fargo Securities were the bookrunners.

Royal Bank of Scotland Group is a banking and financial services company based in Edinburgh, Scotland.

EQT Midstream prices

EQT Midstream Partners priced $2.5 billion of split-rated senior notes (Ba1/BBB-/BBB-) in three fixed-rate tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

EQT sold $1.1 billion of 4.75% five-year senior notes at 99.761 to yield 4.803%, or a spread of Treasuries plus 200 bps.

The company priced $850 million of 5.5% 10-year senior notes at 99.538 to yield 5.56% and a Treasuries plus 262.5 bps spread.

EQT also sold $550 million of 6.5% 30-year notes at 99.055 to yield 6.572%. The notes priced with a spread of 350 bps over Treasuries.

The notes all came on the tight side of initial guidance.

BofA Merrill Lynch, Wells Fargo Securities, Deutsche Bank Securities Inc., PNC Capital Markets LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities, MUFG, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. were the bookrunners.

The energy company is based in Pittsburgh.

Marvell Technology prints

Marvell Technology Group sold $1 billion of fixed-rate senior notes (Baa3/BBB-/BBB-) in two tranches on Wednesday, according to a market source and an FWP filing with the SEC.

The company placed $500 million of 4.2% five-year notes at 99.795 to yield 4.246%, or a Treasuries plus 145 bps spread. The notes were initially talked to price in the Treasuries plus 162.5 bps to 175 bps area.

Marvell Technology sold $500 million of 4.875% 10-year notes at 99.976 to yield 4.878%, or a 195 bps over Treasuries spread. Initial price guidance on the notes was in the Treasuries plus 212.5 bps to 225 bps area.

Goldman Sachs, BofA Merrill Lynch, Barclays, HSBC Securities, MUFG and Wells Fargo Securities were the bookrunners.

Marvell is a Hamilton, Bermuda-based provider of storage, networking and connectivity solutions

UBS raises $1 billion

UBS, London Branch priced $1 billion of 4.5% 30-year senior notes (Aa3/+/AA-) on Wednesday at a spread of 147 bps over Treasuries, according to a market source.

The notes were initially talked to price in the Treasuries plus 160 bps area.

UBS Securities LLC was the bookrunner.

UBS, London Branch is a London-based financial services company and subsidiary of UBS AG.

Bank of America sells floaters

Bank of America priced $850 million of medium-term floating rate senior notes due June 25, 2022 (A3/A-/A) on Wednesday at Libor plus 80 bps, according to a market source.

Initial price talk on the notes was in the Libor plus 70 bps area.

BofA Merrill Lynch was the bookrunner.

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

AIG sells two tranches

AIG Global Funding priced $550 million of three-year senior secured notes (A2/A+/) in two parts on Wednesday, according to a market source.

AIG sold $250 million of three-year floating-rate notes at Libor plus 46 bps.

The company priced $300 million of 3.35% three-year fixed-rate notes at a Treasuries plus 68 bps spread.

Barclays, Deutsche Bank Securities and U.S. Bancorp Investments were the bookrunners.

AIG Global Funding is a financing arm of Houston-based American General Life Insurance Co., Inc.

Xcel Energy sells bonds

Xcel Energy sold $500 million of 4% 10-year senior notes (A3/BBB+/BBB+) on Wednesday at a spread of 115 bps over Treasuries, according to an FWP filing with the SEC.

The notes priced at 99.311 to yield 4.085%.

J.P. Morgan Securities, Morgan Stanley & Co. LLC, MUFG and TD Securities were the bookrunners.

Proceeds will be used to repay short-term borrowings and for other general corporate purposes.

The public utility holding company is based in Minneapolis.

Finnvera prices five-years

Finnvera (Aa1/AA+/) priced a $1 billion offering of 3% notes due June 27, 2023 on Wednesday at a spread of mid-swaps plus 15 bps, or Treasuries plus 28.9 bps, according to an informed source.

The notes were initially talked to price in the mid-swaps plus 17 bps area.

Citigroup Global Markets, Goldman Sachs, HSBC Securities and TD Securities were the bookrunners for the Rule 144A and Regulation S transaction.

Finnvera is a government-owned financing company based in Kuopio, Finland.

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