UBS, BB&T, APT Pipelines, Wyndham, Arizona Public Service, Hanmi sell bonds; Verizon softens

By Cristal Cody

Tupelo, Miss., March 16 – High-grade companies priced more than $9 billion of bonds on Thursday, a rebound from the light issuance in the previous session.

UBS Group Funding (Switzerland) AG tapped the primary market with a $5 billion three-part offering of notes.

BB&T Corp. brought $1.35 billion of five-year five- and floating-rate notes to the primary market.

APT Pipelines Ltd. sold $850 million of long 10-year notes.

Wyndham Worldwide Corp. came to the market initially with a 10-year notes offering and added a seven-year tranche to price a total of $700 million of notes during the session.

Also on Thursday, Scentre Management Ltd. placed $500 million of 10-year notes.

The Ford Foundation priced a downsized $273 million of 30-year 3(a)4 exempt taxable bullet bonds during the session.

Arizona Public Service Co. reopened its 4.35% notes due Nov. 15, 2045 on Thursday.

In addition on Thursday, Hanmi Financial Corp. priced $100 million of 10-year fixed-to-floating rate subordinated notes.

The Markit CDX North American Investment Grade index ended mostly unchanged at a spread of 62 basis points.

In the secondary market, Verizon Communications Inc.’s 4.125% notes due March 16, 2027 remained soft on the day.

UBS prices $5 billion

UBS Group Funding (Switzerland) priced $5 billion of notes (/A-/A) in three tranches on Thursday, according to a market source.

UBS priced $1 billion of six-year floating-rate notes at par to yield Libor plus 122 bps.

The company sold $2 billion of 3.491% notes due April 23, 2023 at 99.998 to yield 3.492%, a spread of 145 bps over Treasuries.

UBS Group brought $2 billion of 4.253% notes due March 23, 2028 at par to yield a spread of Treasuries plus 172 bps.

UBS Securities LLC was the bookrunner.

UBS Group Funding is a Swiss financing arm and subsidiary of UBS Group AG.

BB&T prints $1.35 billion

BB&T priced $1.35 billion of series E senior medium-term five-year notes (A2/A-/A+) in two parts on Thursday, according to FWP filings with the Securities and Exchange Commission.

BB&T sold $350 million of floating-rate notes due April 1, 2022 at par to yield Libor plus 65 bps.

The company priced $1 billion of 2.75% five-year notes at 99.813 for a spread of 75 bps over Treasuries.

BB&T Capital Markets, BofA Merrill Lynch, Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

The bank and financial services company is based in Winston-Salem, N.C.

APT sells long 10-year notes

APT Pipelines sold $850 million of 4.25% long 10-year notes on Thursday at a spread of Treasuries plus 180 bps, a market source said.

The notes due July 15, 2027 (Baa2/BBB/) priced on the tight side of guidance in the Treasuries plus 185 bps area, plus or minus 5 bps.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

APT Pipelines is a Sydney, Australia-based financing arm of Australian Pipeline Trust.

Wyndham prices two tranches

Wyndham Worldwide sold $700 million of senior notes (Baa3/BBB-/BBB-) in two parts on Thursday, according to an FWP filing with the SEC.

The company placed $300 million of 4.15% notes due April 1, 2024 at 99.818 to yield 4.18%. The seven-year notes priced at a spread of 185 bps over Treasuries.

Wyndham sold $400 million of 4.5% notes due April 1, 2027 at 99.775 to yield 4.28%, or Treasuries plus 200 bps.

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

Proceeds will be used for general corporate purposes.

The hospitality and lodging company is based in Bethesda, Md.

Scentre raises $500 million

Scentre Management priced $500 million of 3.75% 10-year notes on Thursday at a spread of 130 bps over Treasuries, according to a market source.

The notes due March 23, 2027 (A1/A/) priced on the tight side of talk.

BofA Merrill Lynch, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the active bookrunners.

Scentre Management is a Sydney, Australia-based investment manager and subsidiary of Scentre Group.

Ford Foundation brings bonds

The Ford Foundation priced a downsized $273 million of 3.859% 30-year 3(a)4 exempt taxable bullet bonds on Thursday at a spread of Treasuries plus 70 bps, according to a market source.

The series 2017 bonds due June 1, 2047 (Aaa//) priced on the tight side of talk at the Treasuries plus 75 bps area, plus or minus 5 bps, and tighter than initial guidance in the Treasuries plus 85 bps area.

The deal was trimmed from $280 million.

Wells Fargo Securities LLC and Citigroup Global Markets Inc. were the lead managers.

Proceeds will be used to fund the renovation of the organization’s headquarters building and for related costs and payment of swap termination fees.

Ford Foundation is a New York City-based private foundation formed with bequests by Edsel and Henry Ford that seeks to reduce poverty and injustice, strengthen democratic values, promote international cooperation and advance human achievement.

Arizona Public Service reopens

Arizona Public Service priced a $250 million add-on to its 4.35% notes due Nov. 15, 2045 (A2/A-/A) on Thursday at 101.529 to yield 4.256%, according to an FWP filing with the SEC.

The notes priced with a spread of 110 bps over Treasuries.

The company sold $250 million of the notes on Nov. 3, 2015 at 99.866 to yield 4.358% and a spread of 135 bps over Treasuries. The total outstanding is now $500 million.

BNP Paribas Securities Corp., BofA Merrill Lynch, RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc. were the bookrunners for the deal.

Proceeds will be used to refinance commercial paper borrowings and replenish cash temporarily used to fund capital expenditures.

Arizona Public Service is an electric utility based in Phoenix and a subsidiary of Pinnacle West Capital Corp.

Hanmi prices at par

Hanmi Financial priced $100 million of 5.45% 10-year fixed-to-floating rate subordinated notes (Kroll: BBB) at par on Thursday, according to an FWP filed with the SEC.

The interest rate is fixed to but excluding March 30, 2022. From March 30, 2022 through maturity, the rate will reset to Libor plus 331.5 basis points.

Sandler O’Neill + Partners, LP was the active lead bookrunner. Keefe, Bruyette & Woods was passive bookrunner.

The notes are non-callable for the first five years and then are callable at par.

The company plans to use the proceeds for general corporate purposes.

Los Angeles-based Hanmi Financial is the holding company for Hanmi Bank.

Verizon slips

In trading, Verizon Communications’ 4.125% notes due March 16, 2027 remained soft on the day, going out at 100.59, down from 100.72 early Thursday, according to a market source.

The notes last traded on Wednesday at 101.23.

Verizon sold $3.25 billion of the 10-year notes (Baa1/BBB+/A-) on Monday at 99.256 and a spread of Treasuries plus 160 bps.

The telecommunications company is based in New York City.

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