Toyota, Charter, BMO, AIG, UDR price; TCF Bank, Commerzbank eye deals; credit spreads ease

By Cristal Cody

Tupelo, Miss., June 25 – Investment-grade corporate issuers priced more than $4 billion of bonds on Tuesday.

Toyota Motor Corp. came by with $1.5 billion of fixed-rate senior notes in three tranches.

Charter Communications, Inc. sold $1.25 billion of 30-year senior secured notes.

Bank of Montreal priced $1 billion of five-year senior medium-term notes.

AIG Global Funding brought $350 million of three-year senior secured notes to the primary market.

UDR, Inc. priced $300 million of long 10-year guaranteed medium-term notes.

In addition, TCF National Bank launched an offering of 10-year fixed-to-floating-rate subordinated bank notes.

Meanwhile on Tuesday, Commerzbank AG announced that it intends to hold a roadshow for a $500 million minimum offering of tier 1 capital subordinated bonds.

Deal volume week to date totals nearly $10 billion.

Investment-grade corporate issuers priced $5 billion of new notes over Monday’s session. Supply was led by Enterprise Products Operating LLC’s $2.5 billion two-part offering of guaranteed fixed-rate senior notes.

The week is expected to post about $15 billion of issuance, syndicate sources said.

The Markit CDX North American Investment Grade 32 index closed the day about 3 basis points softer at a spread of 58 bps.

In the secondary market, Charter Communications’ notes traded wrapped around issuance at 260 bps bid, a source said.

Enterprise Products Operating’s notes were quoted tighter across both tranches in secondary trading after the issue priced on Monday, a market source said.

The company’s 3.125% notes due July 31, 2029 firmed about 3 bps.

Enterprise Products sold $1.25 billion of the notes at a spread of 110 bps over Treasuries.

The $1.25 billion tranche of 4.2% notes due Jan. 31, 2050 tightened about 6 bps in the secondary market. The tranche priced Monday at a Treasuries plus 165 bps spread.

The notes are unconditionally guaranteed by parent company Enterprise Products Partners LP.

Enterprise Products is a midstream energy services provider based in Houston.

Toyota Motor prices $1.5 billion

Toyota Motor (Aa3/AA-/A+) sold $1.5 billion of fixed-rate senior notes in three tranches on the tight side of guidance on Tuesday, according to a market source.

A $500 million tranche of 2.157% three-year notes priced at a spread of Treasuries plus 48 bps.

The company sold $500 million of 2.358% five-year notes at a 63 bps over Treasuries spread.

Toyota Motor placed $500 million of 2.76% 10-year notes with a spread of 77 bps over Treasuries.

J.P. Morgan Securities LLC, BofA Securities Inc. and BNP Paribas Securities Corp. were the bookrunners.

Toyota Motor is an auto manufacturer based in Toyota City, Aichi Prefecture, Japan.

Charter raises $1.25 billion

Charter Communications sold $1.25 billion of 5.125% 30-year senior secured notes (Ba1/BBB-/BBB-) at 99.88 to yield 5.133% on Tuesday, according to a market source.

The notes priced at a spread of Treasuries plus 260 bps.

Initial price talk was in the Treasuries plus 262.5 bps area with guidance later firmed to the 260 bps spread area.

The deal was priced via subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp.

The offering had a final book size of $2.45 billion.

Citigroup Global Markets Inc., J.P. Morgan Securities and Morgan Stanley & Co. LLC were the bookrunners.

The bonds are guaranteed by all of the issuers’ subsidiaries that issue or guarantee any equally and ratably secured debt.

In the secondary market, the notes traded at 260 bps bid.

Charter is a Stamford, Conn.-based broadband communications company.

Bank of Montreal brings $1 billion

Bank of Montreal priced $1 billion of 2.5% five-year senior medium-term notes on Tuesday at a spread of 78 bps over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at 99.986 to yield 2.503%.

BMO Capital Markets Corp., BofA Securities, Goldman, Sachs & Co. LLC, J.P. Morgan Securities and Morgan Stanley were the lead managers.

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

AIG Global taps market

AIG Global Funding sold $350 million of 2.3% three-year senior secured notes (A2/A+/) on Tuesday on the tight side of guidance at a spread of 63 bps over Treasuries, according to a market source.

Price guidance tightened to the 65 bps spread area from initial talk in the Treasuries plus 80 bps area.

BofA Securities, Deutsche Bank Securities Inc. and J.P. Morgan Securities were the bookrunners.

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

UDR sells guaranteed notes

UDR priced $300 million of 3.2% guaranteed medium-term notes due Jan. 15, 2030 (Baa1/BBB+/) on Tuesday at 99.662 to yield 3.238%, or a spread of Treasuries plus 125 bps, according to an FWP filing with the SEC.

Wells Fargo Securities LLC, J.P. Morgan Securities and Jefferies LLC were the bookrunners.

The notes are fully and unconditionally guaranteed by United Dominion Realty, LP.

UDR is a real estate investment trust that owns and operates apartment communities.

TCF National Bank launches

TCF National Bank launched an offering of fixed-to-floating-rate subordinated bank notes due 2029 (Baa2/BBB-/), according to an 8-K filing with the SEC on Tuesday.

The notes are offered under Regulation D.

The deal features $150 million of callable bank notes due July 2, 2029, according to a ratings assignment from S&P Global Ratings on Tuesday.

TCF National Bank announced in January that it plans to merge with Chemical Financial Corp. in a stock transaction valued at $3.6 billion. Shareholders of both companies approved the deal on June 7. The merger is expected to close by the fourth quarter.

Wayzata, Minn.-based TCF National Bank is a bank and financial services subsidiary of TCF Financial Corp.

Commerzbank roadshows notes

Commerzbank (A1/A-/BBB+) plans to hold a roadshow for a $500 million minimum offering of tier 1 capital subordinated bonds, according to a news release on Tuesday.

The bonds (/BB/) will have a perpetual maturity and a first call date in April 2025.

Terms include a temporary write-down if the bank’s common equity tier 1 ratio drops below 5.125%.

The bonds will be issued following the roadshow, subject to market conditions.

Commerzbank is a global banking and financial services company based in Frankfurt, Germany.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.