Enel, SL Green price; Walt Disney sells C$1.25 billion maple bonds; credit spreads firm

By Cristal Cody

Tupelo, Miss., Oct. 3 – Enel Finance International NV brought $3 billion of senior notes in three parts to the high-grade primary market on Tuesday.

In other corporate issuance, SL Green Operating Partnership, LP sold an upsized $500 million of five-year guaranteed senior notes on the tight side of guidance.

Also on Tuesday, Walt Disney Co. priced C$1.25 billion of 2.758% seven-year senior notes at par in a Canadian private placement deal.

Several U.S. issuers including PepsiCo Inc. and Apple Inc. have tapped the Canadian primary market in 2017 with new maple bonds. Most recently, McDonald’s Corp. priced C$1 billion of senior notes on Sept. 25.

“Public maples are very popular among investors who don’t have access to these names,” a market source said.

The Markit CDX North American Investment Grade 29 index tightened about 1 basis point on Tuesday to a spread of 54 bps.

Enel prices $3 billion

Enel Finance International priced $3 billion of senior notes (Baa2/BBB/BBB+/) in three tranches on Tuesday in a Rule 144A and Regulation S offering, a market source said.

The company sold $1.25 billion of 2.75% notes due April 6, 2023 at a spread of Treasuries plus 90 bps.

Enel priced $1.25 billion of 3.5% notes due April 6, 2028 at a Treasuries plus 132 bps spread.

The company also priced a $500 million add-on to its 4.75% bonds due May 25, 2047 at a spread of Treasuries plus 147 bps. The total outstanding now is $1.5 billion.

All three tranches priced on the tight side of guidance.

The bookrunners on the deal were BofA Merrill Lynch, Barclays, BBVA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG, NatWest Markets and Santander Investment Securities Inc.

The company held fixed-income investor calls on Monday ahead of the offering.

Enel Finance is a financing arm of Rome-based electricity and gas manufacturer and distributor Enel SpA.

SL Green upsizes

SL Green Operating Partnership priced $500 million of 3.25% five-year guaranteed senior notes (Baa3/BBB-BBB-) at 99.893 to yield 3.273% and a spread of 135 bps over Treasuries on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced on the tight side of guidance in the Treasuries plus 140 bps area, and the offering was upsized from $300 million.

Wells Fargo Securities LLC, J.P. Morgan Securities, Goldman Sachs and U.S. Bancorp Investments, Inc. were the bookrunners.

The notes are guaranteed by SL Green Realty Corp. and Reckson Operating Partnership, LP.

Proceeds will be used to repay the company’s 3% exchangeable senior notes due 2017.

The real estate investment trust for retail and commercial properties is based in Escondido, Calif.

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