JPMorgan, Wells Fargo, Kroger sell notes; Sweden to price; Alimentation Couche-Tard eyes deal

By Cristal Cody

Tupelo, Miss., July 17 – Monday saw strong pricing action with investment-grade issuers including JPMorgan Chase & Co., Wells Fargo & Co., American Honda Finance Corp. and Kroger Co. in the primary market.

Also on Monday, Government Properties Income Trust and AerCap Ireland Capital DAC/AerCap Global Aviation Trust sold bonds.

Coming up on Tuesday, the Kingdom of Sweden (Aaa/AAA/AAA) plans to price a benchmark sized dollar-denominated offering of notes due July 25, 2019 in a Rule 144A and Regulation S offering, according to a market source.

Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Nomura Securities International, Inc. are the bookrunners.

Also, Alimentation Couche-Tard Inc. (Baa2/BBB/) will continue a second round of investor calls on Tuesday for its previously announced Rule 144A/Regulation S senior note offering, according to a market source.

HSBC, MUFG and Wells Fargo Securities, LLC are arranging the calls.

Alimentation Couche-Tard also plans a Canadian-dollar-denominated senior note private placement deal.

Market sources forecast about $25 billion to $30 billion of high-grade bond supply for the week.

The Markit CDX North American Investment Grade index firmed about 1 basis point to end at a spread of 57 bps.

JPMorgan prints $4 billion

JPMorgan Chase priced a $4 billion offering of fixed-to-floating rate notes (A3/A-/A+) in two tranches on Monday, according to a market source.

The company sold $2.5 billion of 3.882% 21-year notes at a spread of Treasuries plus 100 bps.

JPMorgan priced $1.5 billion of 4.032% 31-year notes at a Treasuries plus 115 bps spread.

Both tranches priced on the tight side of guidance.

J.P. Morgan Securities LLC was the bookrunner.

The New York-based financial services firm plans to use the proceeds for general corporate purposes.

Wells Fargo taps primary

Wells Fargo sold $3.75 billion of 2.625% five-year senior notes (A2/A/AA-) on Monday at a spread of Treasuries plus 80 bps, according to a market source.

The notes priced in line with guidance.

Wells Fargo Securities was the bookrunner.

The financial services company is based in San Francisco.

American Honda Finance prices

American Honda Finance priced $1.75 billion of series A fixed- and floating-rate medium-term notes (A1/A+/) in three tranches on Monday, according to FWP filings with the Securities and Exchange Commission.

The company sold $750 million of 18-month floating-rate notes at par to yield Libor plus 15 bps. The interest rate will initially reset on Oct. 22, 2017 and again on each interest payment date.

American Honda Finance priced $300 million of 2.9% three-year floating-rate notes at par to yield Libor plus 27 bps. The interest rate will initially reset on Oct. 20 2017 and on each interest payment date.

The $700 million tranche of 1.95% three-year fixed-rate notes priced at 99.899 to yield 1.985% and a spread of Treasuries plus 45 bps.

The bookrunners on the 18-month floaters were Barclays, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC.

Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities, SG Americas Securities, LLC and Wells Fargo Securities were the bookrunners on the three-year fixed- and floating-rate issues.

American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.

Kroger places three tranches

Kroger sold $1.5 billion of fixed-rate senior notes (Baa1/BBB/BBB) in three tranches on the tight side of talk on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

Kroger priced $400 million of 2.8% five-year notes at 99.981 to yield 2.804% and with a spread of Treasuries plus 95 bps. The notes were talked to price in the Treasuries plus 100 bps area, plus or minus 5 bps.

The $600 million tranche of 3.7% 10-year notes priced at 99.941 to yield 3.707% and a Treasuries plus 140 bps spread. Price guidance on the notes was in the Treasuries plus 145 bps area, plus or minus 5 bps.

In the final tranche, Kroger sold $500 million of long 30-year notes with a 4.65% coupon at 99.276 to yield 4.695%. The notes priced at a spread of 180 bps over Treasuries, compared to talk in the Treasuries plus 185 bps area, plus or minus 5 bps.

Mizuho Securities USA Inc., Goldman Sachs, U.S. Bancorp Investments Inc., Citigroup Global Markets, PNC Capital Markets LLC and Wells Fargo Securities were the bookrunners for the five-year notes.

Mizuho Securities, RBC Capital Markets, LLC, Wells Fargo Securities, BofA Merrill Lynch, Fifth Third Securities, Inc. and MUFG were the bookrunners for the 2027 notes.

Mizuho Securities, BofA Merrill Lynch, Citigroup, BB&T Capital Markets, BNY Mellon Capital Markets, LLC and Santander Investment Securities Inc. were the bookrunners for the 2048 notes.

Proceeds will be used for a contribution to the company-sponsored defined benefit plan, to refinance long-term debt due August 2017 and for general corporate purposes.

Kroger is a Cincinnati-based grocery retailer.

AerCap sells $1 billion

AerCap Ireland Capital and AerCap Global Aviation Trust sold $1 billion of 3.65% 10-year guaranteed senior notes (Baa3/BBB-/BBB-) on Monday at 99.494 to yield 3.711%, according to a market source, news release and an FWP filing with the SEC.

The notes priced with a spread of Treasuries plus 140 bps, on the tight side of talk in the Treasuries plus 145 bps area, plus or minus 5 bps.

The bookrunners were Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets, Goldman Sachs, HSBC Securities (USA) Inc., J.P. Morgan Securities, BofA Merrill Lynch, Mizuho Securities USA LLC, RBC Capital Markets, LLC, Santander Investment Securities Inc., SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities.

The notes are guaranteed by parent company AerCap Holdings NV and certain other subsidiaries.

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.

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