Exxon, UPS, Ameritrade, Regency, Duke, Brixmor price; issuers eye primary; energy bonds mixed

By Cristal Cody

Tupelo, Miss., Aug. 13 – Investment-grade issuers priced nearly $10 billion of bonds on Tuesday, bringing week to date deal volume to more than $21 billion.

Supply was forecast to total in the $25 billion to $30 billion or higher area this week, according to market sources.

Exxon Mobil Corp. led the day’s supply with a $7 billion seven-tranche offering of notes.

United Parcel Service, Inc. tapped the primary market with $1.5 billion of senior notes in three tranches.

TD Ameritrade Holding Corp. sold $500 million of 10-year senior note.

Regency Centers LP brought $425 million of 10-year guaranteed senior notes.

Brixmor Operating Partnership LP priced a $350 million reopening of 4.125% senior notes due May 15, 2029.

Duke Realty LP also priced a $175 million add-on to its 3.375% senior notes due Dec. 15, 2027.

In other action on Tuesday, Assurant Inc. (Baa3/BBB/) wrapped a two-day round of fixed income investor calls on Tuesday for a possible bond offering, according to a market source.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the arrangers.

In addition on Tuesday, split-rated issuer Gaming and Leisure Properties, Inc. (Ba1/BB+/BBB-/) held fixed income investor calls, a source said. BofA Securities, Inc., Fifth Third Securities, Inc., J.P. Morgan Securities and Wells Fargo Securities are the arrangers.

Investment-grade issuers priced $11.1 billion of bonds on Monday in nine deals, including eight registered with the Securities and Exchange Commission and one Rule 144A and Regulation S offering.

Daimler Finance North America LLC’s $4 billion of senior notes (A2/A/) priced in four tranches on Monday tightened about 2 basis points to 6 bps in the secondary market, a source said.

The $500 million tranche of 3.1% notes due Aug. 15, 2029 firmed about 6 bps. The notes priced with a spread of 150 bps over Treasuries.

CenterPoint Energy, Inc.’s $1.2 billion of senior notes (Baa2/BBB/BBB) priced in three tranches on Monday improved about 1 bp to 3 bps in secondary trading, a market source said.

The company’s $400 million of 2.95% notes due March 1, 2030, priced at a spread of 135 bps over Treasuries, tightened about 2 bps.

Energy bonds were mixed on Tuesday.

Exxon Mobil’s existing bonds were softer to about 1 bp tighter, a source said.

Occidental Petroleum Corp.’s senior notes (Baa3/A/), priced as part of a $13 billion 10-part offering a week ago, were mixed during the session.

The Markit CDX North American Investment Grade 32 index tightened 5 bps on the day to head out at a spread of 57 bps.

Exxon Mobil prices $7 billion

Exxon Mobil priced $7 billion of notes (Aaa/AA+) in seven tranches on Tuesday, according to an FWP filing with the SEC.

The company sold $750 million of floating-rate notes due Aug. 16, 2022 at par to yield Libor plus 33 bps.

A $750 million tranche of 1.902% three-year fixed-rate notes priced at par with a spread of 30 bps over Treasuries.

The company sold $1 billion of 2.019% five-year notes at par to yield a spread of 45 bps over Treasuries.

A $1 billion tranche of 2.275% notes seven-year notes priced at par with a spread of 65 bps over Treasuries.

Exxon Mobil sold $1.25 billion of 2.44% 10-year notes at par to yield a spread of 75 bps plus Treasuries.

The company sold $750 million of 2.995% notes due Aug. 16, 2039 at par with a spread of 85 bps over Treasuries.

In the final tranche, $1.5 billion of 3.095% 30-year bonds priced at par to yield 95 bps over Treasuries spread.

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

Exxon Mobil is an energy company based in Irving, Texas.

UPS sells $1.5 billion notes

United Parcel Service priced $1.5 billion of senior notes (A2/A/) in three tranches on Tuesday, according to an FWP filed with the SEC.

The company sold $400 million of 2.2% five-year notes at 99.914 to yield 2.218%, or a spread of 65 bps over Treasuries.

UPS priced $400 million of 2.5% 10-year notes at 99.691 to yield 2.535%. The bonds priced with a Treasuries plus 85 bps spread.

A $700 million tranche of 3.4% 30-year notes priced at 99.235 to yield 3.441%. The bonds priced with a Treasuries plus 130 bps spread.

Barclays, Goldman Sachs & Co. LLC, Morgan Stanley, Wells Fargo Securities, BofA Securities, Citigroup Global Markets and J.P. Morgan Securities were the bookrunners.

The package delivery and supply chain management company is based in Atlanta.

TD Ameritrade prices $500 million

TD Ameritrade Holding sold $500 million of 2.75% 10-year senior notes (A2/A/) on Tuesday at a spread of Treasuries plus 108 bps, according to an FWP filing with the SEC.

The notes priced at 99.888 to yield 2.763%.

J.P. Morgan Securities, U.S. Bancorp Investments Inc., Wells Fargo Securities, Barclays, BofA Securities, Citigroup Global Markets, ICBC Standard Bank Plc, Morgan Stanley and TD Securities (USA) LLC were the bookrunners.

The securities brokerage and financial services provider is based in Omaha.

Regency Centers taps primary

Regency Centers priced $425 million of 2.95% 10-year guaranteed senior notes (Baa1/BBB+/) at a spread of 127 bps over Treasuries on Tuesday, according to an FWP filing with the SEC.

The notes priced at 99.903 to yield 2.961%.

U.S. Bancorp Investments, BofA Securities, J.P. Morgan Securities, Mizuho Securities USA Inc. and Wells Fargo Securities were the bookrunners.

The notes will be guaranteed by general partner Regency Centers Corp., a Jacksonville, Fla., real estate investment trust that owns retail shopping centers.

Brixmor prices $350 million tap

Brixmor Operating Partnership priced a $350 million reopening of 4.125% senior notes due May 15, 2029 on Tuesday at 106.402 to yield 3.333%, according to a market source and an FWP filing with the SEC.

The notes (Baa3/BBB-/BBB-) priced with a spread of 165 bps over Treasuries, on the tight side of guidance and better than initial talk.

Wells Fargo Securities, BMO Capital Markets Corp., Jefferies LLC, U.S. Bancorp Investments, Barclays, BofA Securities, Scotia Capital (USA) Inc. and SunTrust Robinson Humphrey, Inc. were the bookrunners.

The issue was first priced on May 7 in a $400 million offering at 99.804 to yield 4.149% and a Treasuries plus 170 bps spread. The total outstanding is $750 million.

New York City-based Brixmor is the operating partnership through which Brixmor Property Group Inc. operates and holds real estate assets.

Duke Realty brings add-on

Duke Realty priced a $175 million add-on to its 3.375% senior notes due Dec. 15, 2027 (Baa1/BBB+/) on Tuesday at 104.162 to yield 2.796%, according to an FWP filed with the SEC.

The bonds priced with a spread of Treasuries plus 112.5 bps.

J.P. Morgan Securities, Citigroup Global Markets, U.S. Bancorp Investments and Wells Fargo Securities were the bookrunners.

The company originally sold $300 million of the bonds on Dec. 5, 2017 at 99.848 to yield 3.393% and a spread of Treasuries plus 103 bps. The total outstanding is $475 million.

Duke Realty is the operating partnership of Indianapolis-based Duke Realty Corp., which owns and operates industrial and health care properties.

Occidental Petroleum mixed

Occidental Petroleum’s 2.9% notes due Aug. 15, 2024 firmed 5 bps to 136 bps bid on Tuesday, a market source said.

The notes traded flat on Friday at 140 bps bid, 136 bps offered.

Occidental Petroleum sold $3 billion of the notes on Aug. 6 at a 140 bps over Treasuries spread.

Occidental Petroleum’s 3.5% notes due Aug. 15, 2029 widened 6 bps on Tuesday to 187 bps bid.

On Friday, the notes were seen trading better at 179 bps bid, 175 bps offered.

The notes priced in the Aug. 6 offering in a $1.5 billion tranche at a Treasuries plus 185 bps spread.

The oil and gas, chemical and midstream company is based in Los Angeles.

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