FMC, Omega price investment-grade bonds; RBC, Council of Europe, Rentenbank tap market

By Cristal Cody

Tupelo, Miss., Sept. 17 – Investment-grade issuers priced more than $5 billion of bonds in the corporate and sovereign, supranational and agency primary markets on Tuesday.

FMC Corp. priced a $1.5 billion three-tranche offering of senior notes.

Omega Healthcare Investors, Inc. sold $500 million of 10-year senior notes.

In SSA supply, Royal Bank of Canada priced $1.5 billion of three-year covered bonds.

Council of Europe Development Bank sold $1 billion of three-year senior global notes.

Landwirtschaftliche Rentenbank also brought $1 billion of two-year senior notes to the primary market.

Week to date, investment-grade volume totals more than $11 billion.

Issuance was expected to be front-loaded ahead of the Federal Reserve’s monetary policy decision due on Wednesday. The primary market most likely will remain quiet on Wednesday with the focus on a potential additional rate cut, a source said.

In other action on Tuesday, PayPal Holdings Inc. held fixed income investor calls.

Several companies are in the midst of fixed income investor calls for potential bond issuance, according to market sources.

Dublin security products company Allegion plc also is holding fixed income investor calls.

Volume was strong on Monday with more than $6 billion of bonds sold over the session.

About $25 billion of issuance is expected by market sources this week.

New issues have mostly improved in secondary trading.

Alcon Finance Corp.’s $2 billion of senior notes that priced in three tranches on Monday tightened about 3 basis points to 5 bps in the secondary market, a source said.

The Markit CDX North American Investment Grade 32 index ended the session modestly weaker at a spread of 51.5 bps.

FMC sells $1.5 billion

FMC priced a $1.5 billion three-tranche offering of senior notes (Baa2/BBB-) on Tuesday on the tight side of guidance, according to a market source and an FWP filing with the Securities and Exchange Commission.

A $500 million tranche of 3.2% seven-year notes priced at 99.899 to yield 3.216%, or a spread of 147 bps over Treasuries.

FMC sold $500 million of 3.45% 10-year notes with a spread of Treasuries plus 165 bps. The notes priced at 99.999 to yield 3.45%.

In the final $500 million tranche, the company priced 4.5% 30-year notes at 99.949 to yield 4.503%. The bonds priced with a Treasuries plus 225 bps spread.

BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.

FMC is a Philadelphia-based chemicals manufacturer.

Omega Healthcare prices

Omega Healthcare Investors priced $500 million of 3.625% 10-year senior notes on Tuesday at 98.542 to yield 3.801%, according to a market source and an FWP filing.

The notes (Baa3/BBB-/BBB-) priced at a spread of Treasuries plus 200 bps, compared to initial talk in the 220 bps spread area.

Wells Fargo Securities LLC, BofA Securities, Credit Agricole Securities (USA) Inc., JPMorgan and Morgan Stanley & Co. LLC were the bookrunners.

The notes are fully and unconditionally guaranteed by subsidiary OHI Healthcare Properties LP.

Omega is a Hunt Valley, Md.-based real estate investment trust focused on the long-term-care industry.

RBC prices $1.5 billion

Royal Bank of Canada priced $1.5 billion of 1.9% three-year covered bonds (Aaa//AAA/DBRS: AAA) at mid-swaps plus 31 bps, or a spread of 26.1 bps over Treasuries, on Tuesday, according to a market source.

Initial price talk was in the mid-swaps plus 33 bps area.

RBC Capital Markets, LLC, HSBC Securities (USA) Inc., BMO Capital Markets Corp. and UBS Securities LLC were the bookrunners.

Royal Bank of Canada is a Toronto-based financial services company.

Council of Europe prices

Council of Europe Development Bank (Aa1/AAA/AA+) sold $1 billion of 1.75% senior global notes due Sept. 26, 2022 on Tuesday at par to yield mid-swaps plus 11 bps, according to a market source and an FWP filing.

Initial price talk was in the mid-swaps plus 12 bps area.

The deal saw final book demand of more than $1.4 billion.

BNP Paribas Securities, Morgan Stanley & Co. International plc, Nomura Securities International, Inc. and RBC Capital Markets were the bookrunners.

The Paris-based Council of Europe Development Bank finances social projects to member states, financial institutions and local authorities for projects including public infrastructure and low-income housing.

Rentenbank sells $1 billion

Landwirtschaftliche Rentenbank (Aaa/AAA/AAA) priced $1 billion of 1.75% two-year senior notes at 99.898 and a spread of mid-swaps plus 7 bps on Tuesday, according to a market source and an FWP filing.

Initial price talk was in the mid-swaps plus 9 bps area.

Credit Agricole CIB, Goldman Sachs International, J.P. Morgan Securities plc and Merrill Lynch International were the bookrunners.

The German development agency for agribusiness is based in Frankfurt.

PayPal Holdings active

PayPal Holdings (BBB+/BBB+) held fixed income investor calls on Tuesday for a potential bond offering, a market source said.

Goldman Sachs, JPMorgan and Morgan Stanley are the arrangers.

PayPal is a San Jose, Calif.-based online payments system operator.

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