OeKB, Bank of Montreal, CubeSmart, Brookfield, Regions price; Capital One, Scotiabank on tap

By Devika Patel

Knoxville, Tenn., Jan. 24 – On Thursday, the primary investment-grade bond market was lively, with two new deals announced and five deals pricing.

Vienna-based Oesterreichische Kontrollbank AG (Aa1/AA+) priced $1.5 billion of 2.625% three-year global notes, Bank of Montreal brought $360 million of two-year floating-rate notes to market, and Wayne, Pa.’s CubeSmart, LP, a real estate investment trust of self-storage facilities, sold $350 million of 10-year 4.375% guaranteed notes.

Toronto’s alternative asset manager Brookfield Asset Management Inc. reported that a subsidiary priced $1 billion of 4.85% notes (Baa2/A-/A) due 2029, and Regions Financial Corp., a financial services company based in Birmingham, Ala., sold a $500 million add-on to its 3.8% notes due 2025, bringing the total outstanding to $1 billion.

McLean, Va.-based Capital One Financial Corp. announced a sale of fixed-rate senior notes due 2024, and Toronto-based Bank of Nova Scotia intends to sell dollar-denominated floating-rate senior notes.

OeKB prices $1.5 billion

OeKB, which provides financial and information services to Austria’s export industry and the capital market, sold $1.5 billion of 2.625% three-year global notes on Thursday at 99.771.

The notes priced at a spread of Treasuries plus 16.65 basis points.

Barclays, Deutsche Bank AG, London Branch, J.P. Morgan Securities plc and RBC Capital Markets LLC were the underwriters.

The notes are guaranteed by the Republic of Austria.

Brookfield sells $1 billion

Brookfield priced $1 billion of 4.85% guaranteed notes (Baa2/A-/A) due 2029.

The notes priced with a spread of Treasuries plus 215 bps. The notes priced at 99.821 to yield 4.871%.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and SMBC Nikko Securities America Inc. are the joint bookrunners.

The notes are being issued by subsidiary Brookfield Finance Inc. and will be guaranteed by parent company Brookfield Asset Management.

Proceeds will be used for general corporate purposes.

BMO sells floaters

Bank of Montreal priced $360 million of two-year floating-rate notes at par.

Interest is payable quarterly, accruing at a rate equal to Libor plus 40 bps.

BMO Capital Markets Corp. and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be contributed to the general funds of the bank and used for general corporate purposes.

CubeSmart prices 4.375% notes

CubeSmart sold $350 million of 4.375% 10-year senior notes (Baa2/BBB).

The notes priced at 99.356 to yield 4.455% with a spread of Treasuries plus 175 bps.

The bookrunners are Wells Fargo, Barclays and Jefferies & Co.

The notes will be guaranteed by CubeSmart.

Proceeds will be used to repay $200 million of debt under the unsecured term loan portion of CubeSmart’s credit facility due January 2019 and for working capital and other general corporate purposes, which may include debt repayment or repurchases.

Regions prices $500 million tap

Regions sold a $500 million add-on to its 3.8% senior notes (Baa2/BBB+/BBB+) due Aug. 14, 2023.

The company sold $500 million of the notes at 99.941 to yield 3.813% with a spread of 98 bps over Treasuries on Aug. 8, with the sale settling on Aug. 13.

On Wednesday, Regions priced $500 million more of the notes at 99.953 to yield 3.811%, or 123 bps over Treasuries.

Goldman Sachs & Co. LLC, Barclays, Credit Suisse Securities (USA) LLC, Regions Securities LLC and UBS Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

Capital One to sell notes

Capital One, a financial services company, expects to price fixed-rate senior notes due 2024.

The notes are non-callable until one month prior to maturity and then feature a par call.

Citigroup Global Markets Inc., Credit Suisse, Morgan Stanley & Co. LLC, Wells Fargo and Capital One Securities are the bookrunners.

Proceeds will be used for general corporate purposes which may include debt repayment, common stock or other securities redemptions and repurchases, acquisitions, working capital, capital expenditures and investments.

Scotiabank eyes floaters

Scotiabank plans to price dollar-denominated non-callable floating-rate senior notes.

Scotiabank and UBS are the bookrunners.

Proceeds will be used for general business purposes.

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