Baltimore Gas, Brixmor, American Financial Group, Oncor price notes; CDX firms; bonds mixed

By Cristal Cody

Eureka Springs, Ark., Aug. 15 – Baltimore Gas and Electric Co., Brixmor Operating Partnership LP and American Financial Group, Inc. tapped the high-grade primary market on Monday.

Issuance is expected to slow over the week with about $15 billion to $20 billion of supply forecast.

Baltimore Gas and Electric sold $850 million of notes in two tranches.

Brixmor Operating Partnership priced $500 million of seven-year senior notes.

American Financial Group brought a $300 million offering of 10-year senior notes.

Also on Monday, Oncor Electric Delivery Co. LLC priced a $175 million add-on to its 3.75% senior notes due 2045.

The Markit CDX North American Investment Grade index firmed about 1 basis point to close at a spread of 71 bps.

In the secondary market, Fidelity National Information Services, Inc.’s senior notes (Baa3/BBB/BBB) priced on Thursday were mostly unchanged.

Westpac Banking Corp.’s new fixed- and floating-rate notes (Aa2/AA-/AA-) were softer in early secondary trading.

Baltimore Gas prices

Baltimore Gas and Electric sold $850 million of 10- and 30-year senior notes (A3/A-/A-) on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company priced $350 million of 2.4% 10-year notes at 99.70 to yield 2.434% and a spread of 88 bps over Treasuries. The notes priced on the tight side of guidance of 90 bps area, plus or minus 2 bps.

The second tranche of $500 million of 3.5% 30-year notes priced at 99.908 to yield 3.505%. The notes priced at 123 bps plus Treasuries, tighter than talk of 125 bps area, plus or minus 2 bps.

BofA Merrill Lynch, MUFG, Wells Fargo Securities, LLC, PNC Capital Markets LLC and SMBC Nikko Securities America, Inc. were the bookrunners.

Proceeds will be used to repay $300 million of outstanding 5.9% series B notes due Oct. 1, 2016, to repay a portion of outstanding commercial paper obligations and for general corporate purposes.

Baltimore-based Baltimore Gas and Electric is a subsidiary of Exelon Corp.

Brixmor sells $500 million

Brixmor Operating Partnership sold $500 million of 3.25% seven-year senior notes at 99.736 to yield 3.292% on Monday, according to a market source and an FWP filing with the SEC.

The company priced the notes with a spread of 190 bps over Treasuries, on the tight side of guidance of 195 bps area, plus or minus 5 bps.

J.P. Morgan Securities, LLC, Barclays, Jefferies LLC, Wells Fargo, BMO Capital Markets Corp., Mizuho Securities USA Inc., Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc. were the bookrunners.

Proceeds will be used to repay outstanding debt under the company’s $1.25 billion revolving credit facility and for general corporate purposes.

The New York City-based real estate investment trust owns and operates shopping centers.

American Financial prices

American Financial Group sold $300 million of 3.5% 10-year senior notes at 99.608 to yield 3.547%, according to an FWP filing with the SEC.

The notes (Baa1/BBB+/) priced with a spread of 200 bps plus Treasuries.

JPMorgan, BofA Merrill Lynch and Wells Fargo were the bookrunners.

Proceeds will be used to fund acquisition costs in connection with the merger with National Interstate Corp.

American Financial Group is a Cincinnati-based holding company primarily for property and casualty insurance businesses.

Oncor Electric reopens

Oncor Electric Delivery priced $175 million of 3.75% senior notes due 2045 with a spread of 110 bps over Treasuries on Monday, according to a market source.

The notes priced on the tight side of guidance in the 115 bps area, plus or minus 5 bps.

BofA Merrill Lynch and Barclays were the bookrunners.

The company originally sold $375 million of the notes on March 19, 2015 at Treasuries plus 125 bps. The total outstanding is $550 million.

Oncor Electric Delivery is an electric company based in Dallas.

Fidelity mostly flat

Fidelity National Information Services’ 2.25% notes due 2021 were quoted early Monday at 103 bps offered, according to a market source.

The notes traded on Friday at 104 bps bid, 102 bps offered.

Fidelity National Information Services sold $750 million of the notes on Thursday at 110 bps over Treasuries.

The company’s 3% notes due 2026 traded flat at 150 bps offered.

The notes were seen on Friday at 152 bps bid, 150 bps offered in the secondary market.

Fidelity National Information sold $1.25 billion of the 10-year notes in Thursday’s offering at 155 bps over Treasuries.

The financial services technology company is based in Jacksonville, Fla.

Westpac Banking eases

Westpac Banking’s 2% notes due 2021 traded early Monday at 86 bps offered in the secondary market, a source said.

The notes traded on Friday at 82 bps bid, 80 bps offered.

Westpac Banking sold $1.5 billion of the notes on Thursday at a spread of 87.5 bps over Treasuries.

The company’s 2.7% notes due 2026 eased to 113 bps offered from where the paper traded on Friday at 111 bps bid, 109 bps offered.

Westpac Banking sold $1 billion of the notes on Thursday at 115 bps over Treasuries.

The Australian bank and financial services provider is based in Sydney.

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