New York Life, NextEra Energy price; Quebec, Swedish Export Credit, Vinci, AXA on deck

By Cristal Cody

Tupelo, Miss., April 1 – Two issuers tapped the high-grade primary market on Monday in the first session of April.

New York Life Global Funding priced an upsized $1 billion of 50-year surplus notes.

NextEra Energy Capital Holdings Inc. sold $500 million of 60-year fixed-to-floating-rate guaranteed debentures.

A couple of issuers are expected to price notes on Tuesday.

The Province of Quebec is marketing $1 billion of five-year global notes.

Swedish Export Credit Corp. is offering $1 billion of two-year global notes.

Overall deal volume is mostly expected to be lighter this week, according to market sources.

Investment-grade supply is forecast in the $20 billion area for the first week of the second quarter, with some market sources predicting as little as $10 billion of issuance.

April is projected to post about $80 billion to $100 billion of total volume.

“We think the upside surprise in last April's volume – specifically DM Yankees and financials – is unlikely to repeat this year given a strong EUR primary market and a new trend of U.S. banks delaying post-earning issuance,” according to a BofA Merrill Lynch note released on Monday. “In addition, the M&A pipeline with high-grade funding implications remains modest, and we have not detected clear signs of acceleration in refinancing activities so far this year.”

In other action on Monday, two companies held fixed income investor calls for upcoming deals.

Vinci SA (A3/A-), a Paris-based construction company, plans to price a debut Rule 144A and Regulation S offering of dollar-denominated notes, a source said.

HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC are the bookrunners.

AXA Equitable Holdings, Inc. (Baa2/BBB+/) held investor calls during the session for a Rule 144A dollar-denominated offering of 10- and 30-year notes, according to a market source.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the bookrunners.

Moody’s Investor Service said in a ratings release on Monday that the deal will include pre-capitalized trust securities that will be issued by affiliates Pine Street Trust I and Pine Street Trust II.

AXA Equitable Holdings is a New York-based insurance holding company and subsidiary of Paris-based AXA SA.

New York Life prices $1 billion

New York Life Global Funding priced an upsized $1 billion of 4.45% surplus notes due May 15, 2069 (Aa2//AA-) at a spread of Treasuries plus 160 bps on Monday, according to a market source.

The notes priced on the tight side of guidance in the Treasuries plus 162.5 bps area, plus or minus 2.5 bps.

The Rule 144A and Regulation S deal was upsized from $750 million.

Citigroup Global Markets, Credit Suisse Securities, J.P. Morgan Securities and U.S. Bancorp Investments, Inc. were the bookrunners.

New York Life Global is a unit of New York-based mutual insurance company New York Life Insurance Co.

NextEra prices $500 million

NextEra Energy Capital Holdings sold $500 million of fixed-to-floating-rate guaranteed debentures due May 1, 2079 (Baa2/BBB/BBB) at par to yield 5.65% on Monday, according to an FWP filing with the Securities and Exchange Commission.

Interest will accrue at a fixed rate until May 1, 2029 and then at a rate based on Libor plus 315.6 bps.

Bookrunners were Goldman Sachs & Co. LLC, BofA Merrill Lynch, Citigroup Global Markets, Credit Suisse Securities and Wells Fargo Securities LLC.

The debentures are guaranteed by NextEra Energy, Inc.

NextEra Energy Capital is a subsidiary of the Juno Beach, Fla.-based energy company.

Quebec plans dollar issue

The Province of Quebec (Aa2/AA-/AA-) plans to price a $1 billion dollar-denominated offering of global notes due April 9, 2024 on Tuesday, according to a market source.

The notes were initially talked to price in the mid-swaps plus 27 bps area.

CIBC World Markets Inc., J.P. Morgan Securities, National Bank Financial Inc. and RBC Capital Markets LLC are the bookrunners.

Swedish Export Credit on tap

Swedish Export Credit (Aa1/AA+/) is marketing $1 billion of two-year dollar-denominated global notes to price on Tuesday, a source said.

The notes were initially talked to price in the mid-swaps plus 6 bps area.

BMO Capital Markets Corp., Daiwa Capital Markets Inc., NatWest Markets Securities Inc. and Scotia Capital (USA) Inc. are the bookrunners.

Swedish Export Credit is a Stockholm-based state-owned financial services company for the Swedish export industry.

© 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.