Deutsche Pfandbriefbank, Telus, Enstar, Life Storage, Consumers Energy price; supply thins

By Cristal Cody

Tupelo, Miss., May 22 – High-grade deal volume remained steady on Wednesday as market focus turned to the release of the minutes from the Federal Reserve’s April 30-May 1 monetary policy meeting and the upcoming long holiday weekend.

Deutsche Pfandbriefbank AG priced $600 million of three-year fixed-rate notes.

Telus Corp. sold $500 million of 30-year senior notes.

Enstar Group Ltd. tapped the primary market with $500 million of 10-year senior notes.

Life Storage LP priced an upsized $350 million of 10-year senior notes.

Consumers Energy Co. brought $300 million of first mortgage bonds due 2050 during the session.

In other issuance on Wednesday, Suncor Energy Inc. sold C$750 million of 10-year senior medium-term notes.

More than $15 billion of investment-grade bonds have priced week to date with supply heaviest on Monday and led by Wells Fargo Bank NA’s $2.1 billion two-part offering of senior bank notes.

About $20 billion to $25 billion of issuance was expected by syndicate sources for the week.

Deal volume is projected to thin after Wednesday ahead of the early market close on Friday and long Memorial Day holiday weekend.

The Markit CDX North American Investment Grade 32 index softened modestly to head out at a spread of 63 basis points.

New issues priced this week have traded mostly flat to tighter, a source said.

The $300 million of 4.8% senior notes due June 1, 2024 (Ba1/BBB-/BBB-) that Sabra Health Care LP and Sabra Capital Corp. brought to market on Tuesday was among the strongest in aftermarket trading at the 242 bps area.

In price, the notes traded early Wednesday at 100.76 and had improved further by the afternoon to 100.98.

Sabra sold the notes at 99.863 to yield 4.831% and a spread of 260 bps over Treasuries.

Initial talk was in the Treasuries plus 285 bps area.

Sabra Health and Sabra Capital are subsidiaries of Sabra Health Care REIT, Inc., an Irvine, Calif., real estate investment trust specializing in the health care sector.

Deutsche Pfandbriefbank prints

Deutsche Pfandbriefbank (/A-/) priced $600 million of three-year fixed-rate notes at par to yield 2.5% on Wednesday, according to a market notice.

Nomura International plc, London Branch, Goldman Sachs International, J.P. Morgan Securities plc and NatWest Markets Securities Inc. were the bookrunners.

Deutsche Pfandbriefbank is an Unterschleissheim, Germany-based bank that specializes in real estate and public sector financing.

Telus raises $500 million

Telus sold $500 million of 4.3% 30-year senior notes (Baa1/BBB+/BBB+) at 99.048 to yield 4.357%, or a spread of 155 bps over Treasuries, according to a market source and an FWP filing with the SEC.

Price talk was in the Treasuries plus 160 bps area.

BofA Securities Inc., RBC Capital Markets LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC were the bookrunners.

Telus is a Vancouver, B.C.-based telecommunications company.

Enstar prices $500 million

Also on Wednesday, Enstar Group priced $500 million of 4.95% 10-year senior notes (/BBB/BBB-) at a spread of 260.7 bps over Treasuries, according to a market source and an FWP filing.

Guidance was in the Treasuries plus 265 bps area, plus or minus 5 bps.

The notes priced at 99.61 to yield 5%.

Bookrunners are Wells Fargo Securities, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey, Inc., Barclays and nabSecurities, LLC.

The deal was upsized from $400 million at the launch.

Enstar is a Hamilton, Bermuda-based company that acquires and manages insurance and reinsurance companies.

Life Storage upsizes

Life Storage sold $350 million of 4% 10-year senior notes during the session at a spread of 167 bps over Treasuries, according to a market source and an FWP filing with the SEC.

The notes (Baa2/BBB/) priced at 99.476 to yield 4.064%.

The offering was upsized from $300 million.

The issue priced on the tight side of guidance and better than initial talk in the Treasuries plus 190 bps area.

Citigroup Global Markets Inc., Wells Fargo Securities and U.S. Bancorp Investments Inc. were the bookrunners.

The notes are fully and unconditionally guaranteed by parent company Life Storage, Inc.

Life Storage is a Williamsville, N.Y.-based real estate investment trust that owns and manages self-storage properties.

Consumers Energy sells notes

Meanwhile, Consumers Energy sold $300 million of 3.75% first mortgage bonds due Feb. 15, 2050 at a spread of 100 bps over Treasuries, according to an FWP filing.

The bonds (Aa3/A/A+) priced at 98.834 to yield 3.815%.

Barclays, Goldman Sachs & Co. LLC, Scotia Capital (USA) Inc., PNC Capital Markets LLC and SunTrust Robinson Humphrey were the bookrunners.

Consumers Energy is an electric and gas utility based in Jackson, Miss.

Suncor Energy prints

Also on Wednesday, Suncor Energy priced C$750 million of 3.1% 10-year senior medium-term notes (Baa1/A-/DBRS: A) at 99.761 to yield 3.128%, according to a news release and final term sheet.

CIBC World Markets Inc., RBC Dominion Securities Inc. and TD Securities Inc. were the bookrunners.

The notes are guaranteed by Suncor Energy Oil Sands LP.

Suncor is a Calgary, Alta., energy company.

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