BMO, Alimentation Couche-Tard, Duke Energy, Federal Realty, United Insurance sell notes

By Cristal Cody

Tupelo, Miss., Dec. 7 – High-grade deal action continues to remain strong into the year-end with several issuers in the primary market on Thursday.

Bank of Montreal came with $1.25 billion of fixed-to-floating rate subordinated notes.

Alimentation Couche-Tard Inc. sold $900 million of senior notes in two parts.

Duke Energy Florida, LLC priced $400 million of two-year amortizing senior notes.

Federal Realty Investment Trust reopened its 3.25% notes due July 15, 2027 in a $175 million tap on Thursday.

Also, United Insurance Holdings Corp. priced $150 million of 10-year senior notes.

In other market activity, details emerged for JPMorgan Chase & Co.’s $250 million reopening of its 3.964% fixed-to-floating-rate notes due Nov. 15, 2048 that priced on Tuesday.

The three-month Libor yield was up 1 basis point to 1.52% on Thursday, a source said.

The Markit CDX North American Investment Grade 29 index tightened nearly 1 bp to a spread of 51.6 bps.

BMO raises $1.25 billion

Bank of Montreal priced $1.25 billion of 3.803% fixed-to-floating rate subordinated notes due Dec. 15, 2032 (Baa2/BBB/A+) at par on Thursday, according to an FWP filing with the Securities and Exchange Commission.

The notes priced with a spread of Treasuries plus 145 bps, or the 10-year mid-swap rate plus 143.2 bps.

The rate on the notes will reset Dec. 15, 2027 to 143.2 bps above the five-year mid-swap rate.

BMO Capital Markets Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. and UBS Securities LLC were the bookrunners.

Proceeds will be contributed to the general funds of the bank and will qualify as tier 2 capital.

Bank of Montreal is a Montreal-based banking and financial services provider.

Alimentation Couche-Tard notes

Alimentation Couche-Tard priced $900 million of senior notes (Baa2/BBB/) in two tranches in a Rule 144A and Regulation S private sale on Thursday, according to a market source and a press release.

The company sold $300 million of floating-rate notes due Dec. 13, 2019 at Libor plus 50 bps, on the tight side of talk in the Libor plus 55 bps area.

The company also priced $600 million of 2.35% two-year notes at a spread of Treasuries plus 55 bps. The notes were talked to price in the Treasuries plus 60 bps area.

HSBC Securities (USA) Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC were the bookrunners.

The notes will be guaranteed by certain wholly-owned subsidiaries that are guarantors under Couche-Tard’s senior credit facilities.

The Quebec-based convenience store operator intends to use the proceeds to repay debt under its senior credit facilities.

Duke Energy Florida prints

Duke Energy Florida priced $400 million of 2.1% amortizing senior notes due Dec. 15, 2019 on Thursday at a spread of 29.4 bps over Treasuries, according to an FWP filed with the Securities and Exchange Commission.

The notes (A3/A-/) priced at par.

Citigroup Global Markets and UBS Securities were the bookrunners.

Proceeds will be used for storm restoration costs related to Hurricane Irma and for general company purposes.

The public utility, a subsidiary of Duke Energy Corp., is based in St. Petersburg, Fla.

Federal Realty reopens issue

Federal Realty Investment Trust priced a $175 million reopening of its 3.25% notes due July 15, 2027 (A3/A-/) on Thursday at a spread of Treasuries plus 97 bps, according to an FWP filed with the SEC.

The notes priced at 99.404 to yield 3.323%.

The company previously sold $300 million of the notes on June 20 at 99.083 to yield 3.358%, or 120 bps over Treasuries. The total outstanding now is $475 million.

Deutsche Bank Securities Inc., Goldman Sachs, BofA Merrill Lynch and Wells Fargo Securities were the bookrunners.

Proceeds will be used to redeem all of the company’s 5.9% notes due 2020 and for general corporate purposes.

The real estate investment trust is based in Rockville, Md.

United Insurance notes

United Insurance Holdings sold $150 million of 6.25% 10-year senior notes (Kroll: BBB-) on Thursday at par, according to an FWP filed with the SEC.

The notes priced with a spread of Treasuries plus 389 bps.

Raymond James & Associates and Wells Fargo Securities were the bookrunners.

Proceeds will be used to redeem $30 million of the company’s floating-rate senior notes due 2026 and for general corporate purposes.

United Insurance is a St. Petersburg, Fla., insurance provider.

JPMorgan taps notes

JPMorgan Chase priced a $250 million reopening of its 3.964% fixed-to-floating-rate notes due Nov. 15, 2048 at 101.761 in the offering on Tuesday, according to a 424B2 filing with the SEC.

After the initial fixed-rate period, the notes convert Nov. 15, 2047 to a floating rate of Libor plus 138 bps.

The company originally sold $1.75 billion of the notes on Nov. 3 at a spread of Treasuries plus 115 bps.

The total outstanding now is $2 billion.

J.P. Morgan Securities LLC was the bookrunner.

Proceeds from the deal will be used for general corporate purposes.

The New York-based financial services firm plans to use the proceeds for general corporate purposes.

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