Interpublic sells $2 billion notes; National Retail prices $700 million in two tranches

By Devika Patel

Knoxville, Tenn., Sept. 18 – Tuesday saw a moderate amount of primary activity in the investment-grade bond market, with two issues pricing and two new deals announced.

New York-based provider of advertising and marketing services Interpublic Group of Cos., Inc. priced a $2 billion sale of senior notes in four tranches to help finance a $2.3 billion acquisition.

Orlando-based real estate investment trust National Retail Properties, Inc. brought $700 million of senior notes to market in two tranches.

Tokyo-based funding organization for Japanese local governments Japan Finance Organization for Municipalities reported that it will offer fixed-rate senior unsecured notes due Sept. 27, 2023 in a Rule 144A sale.

Brussels regional bank Dexia Credit Local SA announced five-year notes to be sold via Deutsche Bank Securities Inc.

Interpublic prices $2 billion

Interpublic sold $2 billion of senior notes (Baa2/BBB/BBB+) in four tranches.

There was $500 million of two-year 3.5% bonds sold with an 80 basis points spread over Treasuries. Pricing was at 99.807.

The company sold $500 million of three-year 3.75% bonds sold with a 90 bps spread over Treasuries. Pricing was at 99.931.

Interpublic priced $500 million of 10-year 4.65% bonds sold with a 165 bps spread over Treasuries. Pricing was at 99.666.

The company also sold $500 million of 30-year 5.4% bonds sold with a 225 bps spread over Treasuries. Pricing was at 99.439.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds will be used, along with proceeds from a term loan, to acquire Acxiom Corp.’s Marketing Solutions business for $2.3 billion in cash.

National Retail sells notes

National Retail priced a $700 million offering of senior notes (Baa1/BBB+/BBB+) in two parts.

The company sold $400 million of 10-year 4.3% notes at 99.288 to yield 4.388% with a spread of 135 bps over Treasuries.

National Retail priced $300 million of 30-year 4.8% notes at 170 bps over Treasuries. These notes were priced at 98.587 to yield 4.89%.

Citigroup Global Markets, BofA Merrill Lynch, Wells Fargo Securities LLC, Morgan Stanley, U.S. Bancorp Investments Inc., Jefferies & Co., RBC Capital Markets Corp. and SunTrust Robinson Humphrey Inc. were the bookrunners.

Japan Finance eyes notes

Japan Finance said it intends to sell fixed-rate senior unsecured notes (A1/A+) due Sept. 27, 2023 with initial price talk in the mid-swaps plus 44 bps area.

The Rule 144A notes are expected to price Wednesday.

BofA Merrill Lynch, BNP Paribas Securities Corp., J.P. Morgan Securities and Nomura are the joint bookrunners.

Dexia to price five-year notes

Dexia reported that it plans to price an offering of five-year notes.

The notes will be guaranteed by Belgium, France and Luxembourg.

Deutsche Bank Securities Inc. is the stabilization coordinator and stabilization manager.

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