Broadcom prints $11 billion; Vinci, AXA on deck; NextEra, Barclays firm; inflows steady

By Cristal Cody

Tupelo, Miss., March 29 – Broadcom Inc. sold $11 billion of senior notes in five tranches in one of the largest Friday prints in the high-grade primary market.

Broadcom priced the notes on the tight side of guidance, a source said.

Telus Corp. also sold C$1 billion of 10-year senior notes during the session.

Including Broadcom’s deal, high-grade issuers priced more than $29 billion of bonds to close out March, beating syndicate forecasts of about $20 billion of supply for the week.

A couple of companies are being eyed to price new issues in April.

Both Vinci SA and AXA Equitable Holdings Inc. will hold fixed income investor calls on Monday.

About $20 billion of issuance is expected by market sources in the week ahead.

In the secondary market, new issues traded mostly tighter, according to market sources.

NextEra Energy Capital Holdings Inc.’s $2.7 billion of debentures (Baa1/BBB+/A-) priced in four tranches on Thursday tightened about 4 basis points to 7 bps in aftermarket trading.

A $500 million tranche of 3.5% bonds due April 1, 2029, priced with a spread of Treasuries plus 115 bps, improved about 4 bps.

The notes were initially talked to price in the Treasuries plus 135 bps to 140 bps area.

Barclays plc’s fixed-to-floating-rate senior notes due Feb. 15, 2023, reopened on Thursday, firmed about 12 bps from where the issue priced.

Barclays sold $750 million of the notes (Baa3/BBB/A) at a spread of 170 bps over Treasuries.

Initial price talk was in the Treasuries plus 175 bps area.

Barclays originally sold $1.75 billion of the notes on Nov. 7, 2018 at a spread of 160 bps plus Treasuries. The notes will convert Feb. 15, 2022 to a floating rate of Libor plus 140 bps. The total outstanding is now $2.5 billion.

In other activity, U.S. high-grade bond fund and ETF inflows “remained stable” at $3.71 billion for the week ended March 27, compared to $3.78 billion in the previous week, said BofA Merrill Lynch credit strategist Yunyi Zhang in a research note released on Friday.

The data includes corporate bonds, Treasuries, agencies and mortgages.

The split of inflows was little changed between high-grade funds, to $2.71 billion for the past week from $2.16 billion a week ago, and ETFs, at $1.54 billion from $1.63 billion in the previous week.

Short-term high-grade inflows also were fairly steady at $760 million this past week from $840 million in the prior week, Zhang said.

High-grade excluding short-term inflows rose slightly to $2.95 billion from $2.94 billion.

Broadcom prices $11 billion

Broadcom priced $11 billion of senior notes (Baa3/BBB-/BBB-) in five tranches on the tight side of guidance on Friday, according to a market source.

A $2 billion offering of 3.125% two-year notes priced at a spread of Treasuries plus 90 bps.

Broadcom sold $1.5 billion of 3.125% notes due Oct. 15, 2022 at a Treasuries plus 105 bps spread.

A $2 billion tranche of 3.625% long five-year notes priced with a spread of 155 bps over Treasuries.

The company sold $2.5 billion of 4.25% notes due Oct. 15, 2026 at a Treasuries plus 205 bps spread.

In the final tranche, Broadcom priced $3 billion of 4.75% 10-year notes at a Treasuries plus 240 bps spread.

BofA Merrill Lynch and J.P. Morgan Securities LLC were the lead managers.

The company held fixed income investor calls on Thursday.

The notes will be guaranteed by Broadcom Technologies Inc., Broadcom Corp. and Broadcom Cayman Finance Pte.

Broadcom is an Irvine, Calif., maker of chips for broadcasting.

Telus raises C$1 billion

Telus sold C$1 billion of 3.3% 10-year senior notes (Baa1/BBB+/DBRS: BBB) on Friday at 99.175 to yield 3.397%, according to a news release.

CIBC World Markets Corp., BMO Nesbitt Burns Inc. and Scotia Capital Inc. were the bookrunners.

Telus is a Vancouver, B.C.-based telecommunications company.

Vinci to bring issue

Vinci (A3/A-) plans to price a debut Rule 144A and Regulation S offering of dollar-denominated notes, according to a market source.

The Paris-based construction company will hold fixed income investor calls on Monday.

HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC are the bookrunners.

AXA eyes deal

AXA Equitable Holdings (Baa2/BBB+/) intends to price dollar-denominated senior notes in two tranches in a Rule 144A transaction, according to a market source.

The deal includes 10- and 30-year notes.

AXA will hold fixed income investor calls on Monday.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities are the bookrunners.

AXA Equitable Holdings is a New York-based insurance holding company and subsidiary of Paris-based AXA SA.

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