Hasbro, Enbridge, Equinor, Aon, L3Harris among high-grade issuers; credit spreads ease

By Cristal Cody

Tupelo, Miss., Nov. 13 – High-grade issuers kept supply strong in the primary market on Wednesday with about $7 billion of bonds priced following AbbVie Inc.’s $30 billion 10-tranche offering sold in the previous session.

Hasbro, Inc. came with $2,375,000,000 of senior notes in four tranches on the tight side of guidance.

Enbridge Inc. priced $2 billion of senior notes in three parts.

Equinor ASA sold $1 billion of 30-year guaranteed notes.

Aon Corp. tapped the primary market with a $500 million offering of three-year guaranteed senior notes.

L3Harris Technologies, Inc. sold $400 million of 10-year senior notes on Wednesday.

Choice Hotels International, Inc. placed $400 million of 10-year senior notes during the session.

Also, Entergy Mississippi, Inc. priced a $135 million add-on to its 3.85% first mortgage bonds due June 1, 2049.

In addition, Inter Pipeline Ltd. tapped the Canadian dollar-denominated primary market with C$700 million of 60-year fixed-to-floating-rate subordinated notes.

Including AbbVie’s deal, dollar-denominated investment-grade corporate supply totals about $40 billion week to date.

About $45 billion to $50 billion of volume was forecast for the holiday-shortened week, according to market sources.

The bond markets were closed on Monday for the Veterans Day holiday.

The Markit CDX North American Investment Grade 33 index closed Wednesday nearly 1 basis point softer at a spread of 52.5 bps.

In the secondary market, Westpac Banking Corp.’s $1.25 billion of 2.35% notes due Feb. 19, 2025, priced on Tuesday at a spread of 63 bps over Treasuries, tightened about 2 bps, a source said.

Hasbro prints $2.3 billion

Hasbro sold $2,375,000,000 of senior notes (Baa3/BBB-/BBB-) in four tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

Hasbro priced $300 million of 2.6% three-year notes at 99.989 to yield 2.604% and a spread of 95 bps over Treasuries.

The company sold $500 million of 3% five-year notes at 99.811 to yield 3.041%, or a Treasuries plus 135 bps spread.

A $675 million tranche of 3.55% seven-year notes came at 99.705 to yield 3.598%. The notes priced at a spread of 180 bps over Treasuries.

In the final tranche, the company placed $900 million of 3.9% 10-year notes at 99.68 to yield 3.939% and a Treasuries plus 205 bps spread.

The notes priced on the tight side of guidance.

BofA Securities, Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., MUFG, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc. and Citizens Capital Markets Inc. were the bookrunners.

The toy and game company is based in Pawtucket, R.I.

Enbridge prices $2 billion

Enbridge priced $2 billion of senior notes (Baa2/BBB+/) in three tranches on Wednesday, according to an FWP filing.

A $500 million tranche of 2.5% notes due Jan. 15, 2025 priced at 99.814 to yield 2.538%, or a spread of 85 bps over Treasuries.

The company sold $1 billion of 3.125% 10-year notes at 99.923 to yield 3.134%. The notes priced with a Treasuries plus 125 bps spread.

Enbridge priced $500 million of 4% 30-year notes at 170 bps over Treasuries spread. The notes priced at 98.845 to yield 4.067%.

Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., SMBC Nikko Securities America Inc., Credit Agricole Securities (USA) Inc., Mizuho Securities USA LLC and Wells Fargo Securities, LLC were the bookrunners.

The notes are guaranteed by Enbridge Energy Partners, LP and Spectra Energy Partners, LP.

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

Equinor brings $1 billion notes

Equinor (Aa2/AA-/) priced $1 billion of 3.25% 30-year guaranteed notes on Wednesday at a spread of Treasuries plus 97 bps, according to an FWP filing.

The notes priced at 98.415 to yield 3.334%.

Citigroup, Goldman Sachs & Co. LLC, Mizuho and Morgan Stanley & Co. LLC were the bookrunners.

The notes are guaranteed by subsidiary Equinor Energy AS.

Equinor ASA, formerly known as Statoil ASA, is an oil, gas, wind and solar energy company based in Stavanger, Norway.

Aon sells three-year notes

Aon sold $500 million of 2.2% three-year guaranteed senior notes (Baa2/A-/BBB+) at a spread of 55 bps over Treasuries on Wednesday, according to an FWP filing.

The notes priced at 99.98 to yield 2.207%.

Bookrunners were BofA Securities, Morgan Stanley and Wells Fargo.

The notes are guaranteed by Aon plc.

Aon is a London-based provider of risk management, insurance and reinsurance brokerage and also human resources solutions and outsourcing services.

L3Harris in primary

L3Harris Technologies priced $400 million of 2.9% 10-year senior notes (Baa3/BBB/BBB) on Wednesday at 99.731 to yield 2.931%, or a spread of 105 bps over Treasuries, according to an FWP filing.

BofA Securities, Citigroup, Wells Fargo, J.P. Morgan Securities, Morgan Stanley, Scotia Capital, SMBC Nikko and TD Securities (USA) LLC were the bookrunners.

L3Harris is an aerospace and defense technology company based in Melbourne, Fla.

Choice Hotels brings issue

Choice Hotels International sold $400 million of 3.7% 10-year senior notes on Wednesday at a spread of 190 bps over Treasuries, according to an FWP filing.

The notes (Baa3/BBB-/) priced at 99.404 to yield 3.772%.

Bookrunners were Deutsche, J.P. Morgan Securities, Wells Fargo, BofA Securities, SunTrust Robinson and Barclays.

Choice Hotels is a hotel franchisor based in Rockville, Md.

Entergy Mississippi taps bonds

Entergy Mississippi sold $135 million of reopened 3.85% first mortgage bonds due June 1, 2049 on Wednesday at a Treasuries plus 105 bps spread, according to an FWP filing.

The bonds (A2/A/) priced at 108.01 to yield 3.413%.

BofA Securities, KeyBanc Capital Markets Inc., Mizuho and SMBC Nikko were the bookrunners.

The company originally priced $300 million of the bonds on May 30 at 98.703 to yield 3.924%, or a spread of 127 bps over Treasuries. The total outstanding is now $435 million.

Entergy Mississippi is a subsidiary of New Orleans-based power provider Entergy Corp.

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