Goldman, Branch Banking, AerCap, MidAmerican tap primary; Nordic Bank, Quebec in pipeline

By Cristal Cody

Eureka Springs, Ark., Jan. 23 – Several issuers found a window on Monday to price more than $8 billion of bonds in the high-grade primary market.

Two more issuers are in Tuesday’s deal pipeline.

On Monday, Goldman Sachs Group Inc. priced $5 billion of notes in three tranches to strong demand.

Branch Banking & Trust Co. brought a $2.6 billion three-part offering of notes.

AerCap Ireland Capital DAC and AerCap Global Aviation Trust came with a $600 million offering of long five-year guaranteed senior notes.

MidAmerican Energy Co. placed $850 million of first mortgage bonds in two tranches.

In the Canadian investment-grade primary market, IGM Financial Inc. sold C$600 million of senior debentures (/A+/DBRS: A) in two tranches on Monday.

Also, H&R Real Estate Investment Trust priced C$200 million of 3.369% series N senior debentures due Jan. 30, 2024.

Coming up in supply on Tuesday, Nordic Investment Bank (Aa2/AA-) plans to price $1 billion of global notes due Feb. 1, 2022 that were talked to price in the mid-swaps plus 19 basis points area.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC and TD Securities (USA) LLC are the lead managers.

Also, the Province of Quebec (Aa2/A+/AA-) plans to price an offering of global notes due Jan. 31, 2022 on Tuesday via BofA Merrill Lynch BMO Capital Markets Corp., Deutsche Bank Securities Inc. and Scotia Capital (USA) Inc.

The notes were talked to price in the mid-swaps plus 46 bps area.

The Markit CDX North American Investment Grade index softened about 1 bp over the session to close at a spread of 67 bps.

In the secondary market, Morgan Stanley’s 4.375% notes due 2047 priced in the previous week were unchanged earlier in the day.

Goldman Sachs prices $5 billion

Goldman Sachs Group priced $5 billion of notes (A3/A/) in three parts on Monday, according to a market source.

Goldman Sachs sold $1 billion of floating-rate notes due April 26, 2022 at par to yield Libor plus 111 bps. The floating-rate tranche had a $1.6 billion final book size.

In the fixed-rate five-year tranche, Goldman Sachs priced $2.25 billion of 3% notes at 99.68 to yield 3.067% and a spread of 120 bps over Treasuries. Final book size was $4.3 billion.

Goldman Sachs placed $1.75 billion of 3.85% notes due Jan. 26, 2027 at 99.72 to yield 3.884%. The 10-year notes priced with a spread of Treasuries plus 148 bps. The book size was $4.3 billion.

Goldman, Sachs & Co. was the bookrunner.

Goldman Sachs Group is a New York-based banking, securities and investment management company.

Branch Banking sells $2.6 billion

BB&T Corp. subsidiary Branch Banking & Trust raised $2.6 billion in a three-part offering of notes (A1/A/A+) on Monday, according to a market source.

The bank priced $600 million of three-year floating-rate notes at Libor plus 45 bps.

Branch Banking & Trust sold $1 billion of 2.1% three-year notes at a spread of 68 bps over Treasuries.

The company placed $1 billion of 2.625% five-year notes with a spread of Treasuries plus 78 bps.

Barclays, BB&T Capital Markets, Morgan Stanley & Co. LLC and RBC Capital Markets LLC were the bookrunners.

Branch Banking & Trust is a banking and financial services company based in Winston-Salem, N.C.

AerCap brings five-year notes

AerCap Ireland Capital and AerCap Global Aviation Trust priced a $600 million offering of 3.5% long five-year guaranteed senior notes (Ba1/BBB-/) at a spread of 170 bps on Monday, according to a market source and a news release.

The deal was upsized from $500 million and priced tighter than guidance in the 180 bps area, plus or minus 5 bps.

The bookrunners were Citigroup Global Markets Inc., Goldman Sachs, J.P. Morgan Securities LLC and BofA Merrill Lynch.

The notes are guaranteed by parent company AerCap Holdings NV.

The notes have a make-whole call and are then redeemable at par, according to a 424B3 filing with the Securities and Exchange Commission.

Proceeds will be used for general corporate purposes, including to acquire, finance or refinance aircraft assets and to repay debt.

AerCap is an independent aircraft leasing company based in Amsterdam.

MidAmerican Energy sells bonds

MidAmerican Energy sold $850 million of first mortgage bonds (Aa2/A+/A+) in two tranches, according to an FWP filing with the SEC on Monday.

The company priced $375 million of 3.1% first mortgage bonds due May 1, 2027 at 99.968 to yield 3.104% and a spread of 70 bps over Treasuries.

The $475 million tranche of 3.95% first mortgage bonds due Aug. 1, 2047 priced at 99.859 to yield 3.958%, or Treasuries plus 95 bps.

Barclays, BNP Paribas Securities Corp., Citigroup, Mizuho Securities USA Inc. and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used for capital expenditures that were disbursed as investments in the company’s 551 megawatt Wind X and 2,000 megawatt Wind XI projects for the period from Feb. 2, 2016 to Feb. 1, 2017. The investments into the wind energy projects were previously funded with the company’s general funds.

MidAmerican Energy is a utility company based in Des Moines.

Morgan Stanley steady

Morgan Stanley’s 4.375% notes due 2047 were seen unchanged in secondary trading early Monday at 137 bps offered, according to a market source.

The notes (A3/BBB+/A) were sold on Tuesday in a $2.25 billion tranche at a spread of Treasuries plus 148 bps.

The financial services company is based in New York City.

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