American Tower, SoCal Edison, Alexandria Equities, AIG, Ameriprise price; Husky eyes market

By Cristal Cody

Tupelo, Miss., March 12 – High-grade corporate and sovereign, supranational and agency issuers tapped the primary market over Tuesday’s session.

American Tower Corp. priced $1.25 billion of senior notes in two tranches.

Southern California Edison Co. brought a $1.1 billion two-tranche offering of first and refunding mortgage bonds.

Alexandria Real Estate Equities, Inc. priced an $850 million three-part offering of guaranteed green senior notes.

American International Group, Inc. sold a $600 million offering of 10-year notes.

Ameriprise Financial, Inc. priced $500 million of three-year senior notes.

In SSA primary action, the International Bank for Reconstruction and Development, or World Bank, sold $4.5 billion of five-year global notes tighter than talk.

Kommunalbanken AS sold $750 million of two-year senior floating-rate notes in line with guidance.

In addition, KommuneKredit was expected to price a dollar-denominated offering of fixed-rate notes due 2022 during the session.

In other market action on Tuesday, Husky Energy Inc. (Baa2/BBB/) held fixed-income investor calls, a source said.

BofA Merrill Lynch, Barclays, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the arrangers.

The Calgary, Alta.-based energy company was last reported in the dollar-denominated primary market in March 2014.

Nearly $5 billion of high-grade bonds priced on Monday, led by BB&T Corp.’s $2 billion two-part sale of senior and subordinated notes.

Market sources predict about $25 billion of deal volume this week following about $40 billion of supply last week.

Credit spreads have unwound last week’s weakness over the past two sessions. The Markit CDX North American Investment Grade 31 index improved another 2 basis points after tightening 4 bps on Monday to close at a spread of 59 bps.

American Tower’s $1.25 billion

American Tower priced $1.25 billion of senior notes (Baa3/BBB-/BBB) in two tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The $650 million tranche of 3.375% notes due May 15, 2024 priced at 99.703 to yield 3.437%, or a spread of 103 bps over Treasuries.

American Tower sold $600 million of 3.95% notes due March 15, 2029 at 98.917 to yield 4.083%. The 10-year notes priced with a 148 bps over Treasuries spread.

Barclays, Mizuho Securities (USA) LLC, RBC Capital Markets, LLC, SG Americas Securities, LLC and TD Securities (USA) LLC were the bookrunners.

American Tower is a telecommunications provider based in Boston.

SoCal Edison prices

Southern California Edison priced a $1.1 billion two-tranche offering of first and refunding mortgage bonds (A3/A-/BBB+) on Tuesday, according to FWP filings with the SEC.

The company sold $500 million of 4.2% 10-year bonds at 99.599 to yield 4.25%. The notes were priced with a spread of 165 bps over Treasuries.

A $600 million tranche of 4.875% 30-year bonds priced at 99.846 to yield 4.885%, or a spread of Treasuries plus 190 bps.

The bookrunners were Barclays, JPMorgan, PNC Capital Markets LLC, Wells Fargo Securities LLC, BNP Paribas Securities Corp. and BNY Mellon Capital Markets LLC.

The company held fixed-income investor calls on Friday.

Southern California Edison is a Rosemead, Calif.-based electric utility company and subsidiary of Edison International.

Alexandria Real Estate prices

Alexandria Real Estate Equities priced an $850 million three-part offering of guaranteed senior notes (Baa1/BBB+/) on Tuesday, according to an FWP filing with the SEC.

The company priced a $200 million add-on to its 4% notes due due Jan. 15, 2024 at 102.368 to yield 3.453%, or a spread of 105 bps over Treasuries.

The 2024 notes were first priced on June 12, 2018 in a $450 million offering at 99.933 to yield 4.013%, or a Treasuries plus 120 bps spread. The total outstanding is now $650 million.

A $350 million new issue tranche of 3.8% seven-year notes priced at 99.893 to yield 3.817% and with a spread of 132 bps over Treasuries.

Also, the company priced $300 million of new 4.85% 30-year notes with a Treasuries plus 187 bps spread. The notes priced at 99.949 to yield 4.853%.

Goldman Sachs, Citigroup Global Markets Inc., JPMorgan and SMBC Nikko Securities America, Inc. were the bookrunners.

The notes are guaranteed by Alexandria Real Estate Equities, LP.

Pasadena, Calif.-based Alexandria Real Estate Equities is a real estate investment trust focused on life science and technology campuses.

AIG sells 10-year notes

American International Group (Baa1/BBB+/A-) priced $600 million of 4.25% 10-year notes on Tuesday at 99.718 to yield 4.285%, or a spread of Treasuries plus 168 bps, according to an FWP filing with the SEC.

Barclays, Citigroup and U.S. Bancorp Investments Inc. were the bookrunners.

AIG is an insurance company based in New York.

Ameriprise Financial prints

Ameriprise Financial sold $500 million of 3% senior notes due March 22, 2022 (A3/A/) on Tuesday at 99.733 to yield 3.094%, according to an FWP filing with the SEC.

The notes priced with a spread of 68 bps over Treasuries.

Citigroup, Goldman Sachs, JPMorgan and BofA Merrill Lynch were the bookrunners.

Ameriprise Financial is a financial services company based in Minneapolis.

World Bank prices $4.5 billion

World Bank priced $4.5 billion of 2.5% global notes due March 19, 2024 (Aaa/AAA/AAA) on Tuesday at mid-swaps plus 6 bps, or a spread of Treasuries plus 12.75 bps, according to market sources.

The deal was launched tighter than initial price talk at mid-swaps plus 6 bps, compared to talk in the 7 bps area.

Final book size was more than $6.6 billion.

J.P. Morgan Securities plc, BNP Paribas Securities, Citigroup Global Markets Ltd. and Wells Fargo were the bookrunners.

The global development financing cooperative is based in Washington, D.C.

Kommunalbanken sells floaters

Kommunalbanken (Aaa/AAA/) priced $750 million of senior floating-rate notes due April 15, 2021 on Tuesday at Libor plus 4 bps, according to a market source.

The notes were initially talked to price in the Libor plus 4 bps area.

Citigroup, JPMorgan and Nomura Securities International, Inc. were the lead managers of the Rule 144A and Regulation S offering.

The government-funded lender to municipalities is based in Oslo.

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