Dollar Tree, BMW, Salesforce.com, General Motors, Enbridge price; BNG, NWB sell notes

By Cristal Cody

Tupelo, Miss., April 5 – Corporate and government agency issuance picked up on Thursday with more than $13 billion of investment-grade bonds priced.

Dollar Tree Inc. sold $4 billion of senior notes in four tranches following the company’s fixed-income investor calls held on Tuesday.

BMW US Capital, LLC priced a $3.5 billion four-tranche offering of notes.

Salesforce.com, Inc. placed $2.5 billion of senior notes in two parts after the company held fixed-income investor calls earlier in the week.

General Motors Financial Co. Inc. brought $2.5 billion of senior notes in three tranches to the primary market.

Also, Enbridge Inc. priced $525 million of fixed-to-floating rate subordinated notes.

In other supply on Thursday, Bank Nederlandse Gemeenten NV sold $500 million of floating-rate notes.

Nederlandse Waterschapsbank NV priced a $250 million add-on to its senior floating-rate notes due 2019.

Looking ahead, several issuers are planning to hold roadshows.

Ausgrid Finance Pty Ltd. plans to start a roadshow for a benchmark-sized note offering on Friday.

On Monday, Syngenta AG will begin a roadshow for a benchmark-sized multi-tranche senior note offering.

Banco Santander, SA also has been holding a roadshow that started on Tuesday in the U.S. and Canadian markets for a benchmark-sized dollar-denominated deal. BofA Merrill Lynch, Citigroup Global Markets, Inc., J.P. Morgan Securities LLC and Santander Investment Securities Inc. are the arrangers.

The Markit CDX North American Investment Grade 30 index closed the day about 1 basis point tighter at a spread of 63 bps.

Dollar Tree raises $4 billion

Dollar Tree priced $4 billion of senior notes (Baa3/BBB-/) in four tranches on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company priced $750 million of two-year floating-rate notes at par to yield Libor plus 70 bps.

Dollar Tree sold $1 billion of 3.7% three-year fixed-rate notes at 99.814 to yield 3.74%, or a spread of Treasuries plus 110 bps.

A $1 billion tranche of 4% seven-year notes priced at 99.899 to yield 4.016%, or a Treasuries plus 125 bps spread.

In the final tranche, Dollar Tree sold $1.25 billion of 4.2% 10-year notes at 99.736 to yield 4.232%. The notes priced with a spread of 140 bps over Treasuries.

The notes all came on the tight side of guidance.

J.P. Morgan Securities, BofA Merrill Lynch, Wells Fargo Securities LLC, RBC Capital Markets, LLC, Fifth Third Securities, Inc. and U.S. Bancorp Investments, LLC were the bookrunners.

Dollar Tree is a Chesapeake, Va.-based discount retailer.

BMW US Capital prints

BMW US Capital priced $3.5 billion of notes (A1/A+/) in four tranches on Thursday, according to a market source.

The company sold $750 million of three-year floating-rate notes at Libor plus 41 bps.

BMW priced $1 billion of 3.1% three-year fixed-rate notes at a spread of Treasuries plus 68 bps.

The company sold $1 billion of 3.45% five-year fixed-rate notes at a spread of 83 bps over Treasuries.

In the final tranche, BMW offered $750 million of 3.75% 10-year notes at a 93 bps spread over Treasuries.

Barclays, Citigroup Global Markets, Credit Agricole CIB, TD Securities (USA) LLC and Wells Fargo Securities were the bookrunners.

Woodcliff Lake, N.J.-based BMW US Capital is the U.S. financing arm for the BMW German auto manufacturer.

Salesforce.com prices $2.5 billion

Salesforce.com priced a $2.5 billion two-part offering of senior notes (A3/A-/) on Thursday, according to an FWP filing with the SEC.

The company sold $1 billion of 3.25% five-year notes at 99.94 to yield 3.263%, or a spread of Treasuries plus 62.5 bps.

Salesforce.com priced $1.5 billion of 3.7% 10-year notes at 99.975 to yield 3.703%. The notes were placed with a spread of 87.5 bps over Treasuries.

BofA Merrill Lynch, J.P. Morgan Securities, Barclays, Citigroup Global Markets, Deutsche Bank Securities Inc. and Wells Fargo Securities were the bookrunners.

The company held fixed income-investor calls on Tuesday and Wednesday.

Salesforce is a San Francisco-based cloud computing company.

GM Financial prices

General Motors Financial (Baa3/BBB/BBB-) priced $2.5 billion of senior notes in three tranches in line with guidance on Thursday, according to a market source and an FWP filing with the SEC.

The company sold $500 million of three-year floating-rate notes at par to yield Libor plus 85 bps.

A $1 billion tranche of 3.55% three-year fixed-rate notes priced at 99.961 to yield 3.564%, or a spread of 112 bps over Treasuries.

General Motors Financial sold $1 billion of 4.35% seven-year notes with a spread of Treasuries plus 160 bps.

Credit Agricole Securities (USA) Inc., Goldman Sachs & Co., J.P. Morgan Securities, BofA Merrill Lynch, RBC Capital Markets and SG Americas Securities LLC were the bookrunners.

The notes are guaranteed by AmeriCredit Financial Services, Inc.

General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.

Enbridge prices $25 par

Enbridge sold $525 million of $25-par 6.375% fixed-to-floating rate subordinated notes due April 15, 2078 on Thursday, according to a market source and an FWP filing with the SEC.

The notes were initially talked to price in the 6.375% to 6.50% area.

The series 2018-B notes (Ba2/BBB-/BBB-) convert to a floating rate on April 15, 2023 of Libor plus 359.3 bps, resetting on April 15, 2028 at Libor plus 384.3 bps and on April 15, 2043 at Libor plus 459.3 bps.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets and Wells Fargo Securities were the bookrunners.

The oil and gas distribution and transportation company is based in Calgary, Alta.

NWB brings add-on

Nederlandse Waterschapsbank (Aaa/AAA/) priced $250 million in a reopening of its senior floating-rate notes due Aug. 9, 2019 on Thursday at Libor plus 1 bp, according to a market source.

The notes were initially talked to price in the Libor plus 1 bp area.

NWB originally sold $1 billion of the notes on Jan. 31 at Libor plus 2 bps and priced a $250 million add-on on March 1 at Libor plus 2 bps. The total amount outstanding now is $1.85 billion.

BMO Capital Markets Corp. and Nomura Securities International, Inc. were the bookrunners.

The local government funding agency is based in The Hague, the Netherlands.

BNG prices $500 million

Bank Nederlandse Gemeenten (Aaa/AAA/AA+) priced $500 million of floating-rate notes due March 11, 2022 on Thursday at Libor plus 7 bps, according to a market source.

The notes priced in line with guidance.

BofA Merrill Lynch and Goldman Sachs were the bookrunners for the Rule 144A and Regulation S sale.

Bank Nederlandse Gemeenten is a banking services company based in The Hague, Netherlands.

Funds add $1.55 billion

Investment-grade corporate funds saw a $1.554 billion for the week to April 4, according to sources familiar with the fund-flow statistics generated by AMG Data Services Inc.

The cash gain was a significant improvement from the modest $0.438 billion inflow for the week to March 28 but smaller than the $2.316 billion inflow of the week before that.

Preceding that figure, there had been a rare $740 million net outflow, as reported by the Arcata, Calif.-based unit of Thomson Reuters Corp’ s Lipper analytics division.

There was also an outflow during the Feb. 14 week but otherwise it has been all cash additions, including a 21 week stretch before the Feb. 14 week that dated back to mid-September, according to a Prospect News analysis of the data.

The latest gain raises the year-to-date inflow for the IG corporates to $31,13 billion from $29.58 billion the previous week, setting a new peak level for the year so far.

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