Harley-Davidson, Kommuninvest price; New Brunswick offers notes; new issues hold tight

By Cristal Cody

Tupelo, Miss., May 16 – Investment-grade supply slowed on Wednesday following more than $25 billion of volume over the first two sessions of the week.

Harley-Davidson Financial Services, Inc. tapped the primary market with $800 million of senior medium-term notes in two tranches as the sole reported corporate issuer.

Kommuninvest I Sverige AB priced $1 billion of short three-year notes tighter than initial guidance.

Coming up in supply on Thursday, the Province of New Brunswick is expected to bring a dollar-denominated 10-year issue to the primary market.

In other activity, the Bank of N.T. Butterfield & Son Ltd. is marketing 10-year fixed-to-floating-rate subordinated notes.

Also, Vodafone Group plc started a roadshow for a dollar-denominated multiple-tranche offering of notes on Wednesday.

Other issuers conducting roadshows or fixed-income investor calls this week include Eni SpA, ASB Bank Ltd. and Air Lease Corp.

About $30 billion to $35 billion of investment-grade bond volume is forecast by market sources for the week.

The Markit CDX North American Investment Grade 30 index was modestly tighter on the day at a spread of 61 basis points.

In the secondary market, General Dynamics Corp.’s senior notes (A2/A+/A) sold a week ago were mostly flat but remain better than issuance in secondary trading.

Barclays plc’s 4.972% fixed-to-floating rate notes due May 15, 2029 were unchanged on the day but have tightened about 2 bps from where the notes priced in the previous week.

The $8 billion of notes priced in six tranches on Monday to fund the merger with Keurig Green Mountain Inc. and Dr Pepper Snapple Group, Inc. have tightened about 4 bps to 7 bps from issuance in the secondary market, a source said. Maple Escrow Subsidiary, Inc., a subsidiary of the parent company of Keurig Green Mountain, sold the notes.

Harley-Davidson sells tranches

Harley-Davidson Financial Services priced $800 million of senior medium-term notes (A3/A-/A) in two tranches in the offering on Wednesday, according to a market source.

The company sold $450 million of two-year floating-rate notes at Libor plus 50 bps. The notes were initially talked to price in the Libor plus 65 bps area.

Harley-Davidson Financial Services priced $350 million of 3.55% two-year fixed-rate notes at a spread of 80 bps over Treasuries, tighter than initial guidance in the Treasuries plus 95 bps area.

Barclays, Citigroup Global Markets Inc. and Goldman Sachs & Co. were the bookrunners.

The Chicago-based company is the financing arm of Harley-Davidson Inc.

Kommuninvest prices $1 billion

Kommuninvest (Aaa/AAA/) priced $1 billion of 2.875% notes due March 1, 2021 in the Rule 144A and Regulation S offering at a spread of mid-swaps plus 6 bps, or Treasuries plus 20.7 bps, according to a market source.

The notes were initially talked to price in the mid-swaps plus 8 bps area.

Barclays, BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC were the bookrunners.

Kommuninvest is an Orebro-based company that offers funding to municipalities of Sweden.

New Brunswick offers notes

Looking to Thursday, New Brunswick plans to price a dollar-denominated offering of 10-year global notes (Aa2/A+/), according to a market source.

The notes were initially talked to price at a spread in the mid-swaps plus 50 bps area.

RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC are the bookrunners.

General Dynamics steady

In the secondary market on Wednesday, General Dynamics’s 3.75% notes due May 15, 2028 were steady at 77 bps bid, a source said.

The company sold $1 billion of the 10-year notes on May 8 at a spread of 85 bps over Treasuries.

General Dynamics is a Falls Church, Va.-based global aerospace and defense company.

Barclays unchanged

Barclays’ 4.972% notes due May 16, 2029 (A2/A/A) were unchanged on the day at 195 bps bid, a source said.

The $1.75 billion tranche of fixed-to-floating rate notes priced May 9 at par to yield a Treasuries plus 197 bps spread. The rate will reset to a floating rate of Libor plus 190.2 bps on May 16, 2028 to but excluding the maturity date.

The financial services company is based in London.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.