Energy suppliers tap primary; Eversource, Nstar, Cleveland Electric, Wisconsin Power price

By Cristal Cody

Tupelo, Miss., Oct. 2 – Several energy suppliers tapped the high-grade bond market on Monday.

Eversource Energy priced a $900 million two-tranche senior note deal, which included a reopening of an existing issue.

Nstar Electric Co., doing business as Eversource Energy, sold a $350 million add-on to its debentures due May 15, 2027.

Cleveland Electric Illuminating Co. priced $350 million of long 10-year senior notes.

Also, Wisconsin Power & Light Co. came with $300 million of 10-year debentures.

In other issuance on Monday, John Deere Capital Corp. priced $600 million of new and reopened notes.

American Campus Communities Operating Partnership LP placed $400 million of guaranteed senior notes due 2027.

About $20 billion of deal volume is expected over the week, according to a market source.

The Markit CDX North American Investment Grade 29 index firmed about 1 basis point to close the day at a spread of 55 bps.

Eversource Energy prices

Eversource Energy priced a $900 million two-part offering of senior notes (Baa1/A-/BBB+) on Monday, including a reopening, according to a market source and an FWP filing with the Securities and Exchange Commission.

The sold $450 million of new 2.9% series L notes due Oct. 1, 2024 at 99.774 to yield 2.936% and a spread of Treasuries plus 77 bps.

Eversource Energy also priced a $450 million add-on to its 2.75% series K notes due March 15, 2022 at 101.023 to yield 2.501%, or Treasuries plus 57 bps.

The company originally sold $300 million of the notes at 99.86 to yield 2.78%, or Treasuries plus 75 bps, on March 2. The total outstanding now is $750 million.

Both tranches priced on the tight side of guidance.

Barclays, BofA Merrill Lynch and MUFG were the global coordinators for both issues.

Citigroup Global Markets Inc., Mizuho Securities USA Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC were the bookrunners for the new issue.

Goldman Sachs & Co., J.P. Morgan Securities LLC, PNC Capital Markets LLC and U.S. Bancorp Investments Inc. were the bookrunners for the reopening.

Proceeds will be used to repay the company’s $978 million of short-term debt.

The Boston-based company is engaged in the energy delivery business through utility subsidiaries.

Nstar Electric reopens

Nstar Electric, doing business as Eversource Energy, sold a $350 million add-on to its debentures due May 15, 2027 (A2/A/A+) on Monday at 101.173 to yield 3.055% and a spread of Treasuries plus 72 bps, according to a market source and an FWP filing with the SEC.

The debentures were talked to price with a spread in the Treasuries plus 75 bps area.

Barclays, BofA Merrill Lynch and MUFG were the global coordinators. MUFG, BNY Mellon Capital Markets LLC, KeyBanc Capital Markets Inc. and RBC Capital Markets, LLC were the bookrunners.

The company originally sold $350 million of the bonds on May 10 at 99.924 to yield 3.209%, or Treasuries plus 80 bps. The total outstanding now is $700 million.

Proceeds will be used to repay at maturity the company’s $400 million 5.625% debentures due Nov. 15, 2017.

The Boston-based company is engaged in the energy delivery business through utility subsidiaries.

Cleveland Electric prints

Cleveland Electric sold $350 million of 3.5% senior notes due April 1, 2028 (Baa3/BBB+/BBB+) on Monday at a spread of 120 bps over Treasuries, according to a market source.

The notes were talked to price in the Treasuries plus 125 bps area.

Goldman Sachs, Santander Investment Securities Inc., Scotia Capital (USA) Inc. and SMBC Nikko Securities America Inc. were the bookrunners.

Cleveland Electric is an Akron, Ohio-based energy utility and subsidiary of FirstEnergy Corp.

Wisconsin Power sells bonds

Wisconsin Power & Light sold $300 million of 3.05% 10-year debentures on Monday at 99.709 to yield 3.084%, according to a market source and an FWP filing with the SEC.

The bonds (A2/A/) priced with a spread of 75 bps over Treasuries, on the tight side of talk in the Treasuries plus 80 bps area.

Goldman Sachs, J.P. Morgan Securities and BofA Merrill Lynch were the bookrunners.

Proceeds will be used to reduce commercial paper and for general corporate purposes.

The Madison, Wis.-based public utility distributes electricity and natural gas to central and southern Wisconsin.

John Deere sells notes

John Deere Capital priced $600 million of new and reopened series G senior medium-term notes (A2/A/A) in two parts on Monday, according to a market source and FWP filings with the SEC.

The company sold $300 million of floating-rate notes due July 5, 2019 at par to yield Libor plus 12 bps, on the tight side of guidance the Libor plus 12 bps to 15 bps area.

John Deere Capital priced $300 million of 2.65% notes due June 24, 2024 at 99.291 to yield 2.766% and a spread of 60 bps over Treasuries. The notes were talked to price in the Treasuries plus 60 bps to 63 bps area.

The company initially sold $300 million of notes on June 19 at 99.809 to yield 2.68%, or Treasuries plus 67 bps. The total outstanding now is $600 million.

Deutsche Bank Securities Inc., J.P. Morgan Securities and RBC Capital Markets were the bookrunners.

John Deere Capital is a financing arm of Moline, Ill.-based farm equipment supplier Deere & Co.

American Campus brings issue

American Campus Communities Operating Partnership sold $400 million of 3.625% 10-year guaranteed senior notes (Baa2/BBB/) on Monday at 99.912 to yield 3.635%, or a spread of Treasuries plus 130 bps, according to a market source and an FWP filing with the SEC.

The notes priced on the tight side of guidance in the Treasuries plus 135 bps area.

The bookrunners were Deutsche Bank Securities, J.P. Morgan Securities, Wells Fargo Securities, BBVA Securities Inc. and BofA Merrill Lynch.

The notes are guaranteed by American Campus Communities Inc.

Proceeds will be used to repay the outstanding balance of the company’s revolving credit facility, to acquire seven student housing properties for $590.6 million, for other projects and other potential acquisitions of student housing properties and for general business purposes.

The real estate investment trust for student housing is based in Austin, Texas.

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