Ford Motor Credit prices; Barclays, BNP Paribas, Duke Energy Florida bring deals; AT&T tightens

By Cristal Cody

Eureka Springs, Ark., Jan. 4 – Ford Motor Credit Co. LLC tapped the high-grade primary market on Wednesday to sell $3 billion of senior notes.

Also, Lloyds Banking Group plc and American Airlines, Inc. were among the reported issuers preparing securities deals.

The first two sessions of 2017 already have seen more than $20 billion of issuance, a source reports.

In other pricing action, details emerged on new transactions from Barclays plc, BNP Paribas and Duke Energy Florida, LLC.

Barclays priced $5 billion of callable senior notes in four tranches.

BNP Paribas sold $1.75 billion of seven-year senior non-preferred medium-term notes.

Duke Energy Florida priced $900 million of first mortgage bonds in two tranches.

The Markit CDX North American Investment Grade index ended Wednesday about 2 basis points tighter at a spread of 64 bps.

Bonds were mixed in the secondary market.

AT&T Inc.’s 4.125% notes due 2026 tightened 10 bps on Wednesday.

AT&T announced plans in October to acquire Time Warner Inc. in an $85.4 billion cash-and-stock deal.

Time Warner’s 2.95% notes due 2026 were unchanged on the day.

FedEx Corp.’s $1.2 billion of notes (Baa2/BBB/) priced in two tranches in the previous session were seen about 1 bp to 3 bps tighter than issuance in secondary trading.

Ford Motor sells $3 billion

Ford Motor Credit (Baa2/BBB/BBB) sold $3 billion of senior notes in fixed- and floating-rate tranches on Wednesday, according to an FWP filed with the Securities and Exchange Commission.

The company priced $1.25 billion of 2.681% notes due Jan. 9, 2020 at par to yield a spread of 120 bps over Treasuries.

Ford Motor Credit priced $1 billion of three-year floating-rate notes at par to yield Libor plus 100 bps.

In the final tranche, the company priced $750 million of 3.81% notes due Jan. 9, 2024 at par to yield 157 bps over Treasuries.

The bookrunners were Barclays, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., RBC Capital Markets, LLC and SMBC Nikko Securities America, Inc.

Proceeds will be used to purchase receivables, for loans and for use in connection with the retirement of debt.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based automaker Ford Motor Co.

Barclays prices $5 billion

Barclays priced $5 billion of callable senior notes (Baa2/BBB/A) in four tranches on Tuesday, according to a market source.

Barclays sold $750 million of six-year floating-rate notes at Libor plus 162.5 bps.

The $1.5 billion tranche of 3.684% six-year fixed-rate notes priced with a spread of 175 bps over Treasuries.

Barclays priced $1.25 billion of 4.337% 11-year notes at a Treasuries plus 190 bps spread.

The company also sold $1.5 billion of 4.95% 31-year notes at a spread of 190 bps over Treasuries.

Barclays was the bookrunner.

Proceeds will be used for general corporate purposes.

Barclays is a London-based banking and financial services company.

BNP raises $1.75 billion

BNP Paribas priced $1.75 billion of 3.8% senior non-preferred medium-term notes due Jan. 10, 2024 (Baa2/A-/) at a spread of 160 bps over Treasuries on Tuesday, according to a market source.

The notes priced tight to initial price thoughts of 170 bps to 175 bps plus Treasuries.

BNP Paribas Securities Corp. was the bookrunner.

BNP Paribas is Paris-based banking and financial services company.

Duke Energy Florida prices

Duke Energy Florida sold $900 million of first mortgage bonds (A1/A/A) in two tranches, according to a market source and an FWP filing with the SEC.

The $250 million tranche of 1.85% notes due on Jan. 15, 2020 priced at 99.886 to yield 1.889% and with a spread of 40 bps over Treasuries.

Duke Energy Florida sold $650 million of 3.2% notes due Jan. 15, 2027 at 99.94 to yield 3.207% and a Treasuries plus 75 bps spread.

Both tranches priced on the tight side of guidance.

BofA Merrill Lynch, Scotia Capital (USA) Inc., TD Securities (USA) LLC, UBS Securities LLC and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for capital expenditures, to repay $250 million of 5.8% first mortgage bonds due 2017 and for general company purposes.

The bonds will not have the benefit of any sinking fund or a special redemption by operation of a sinking fund.

The public utility is based in St. Petersburg, Fla., and is a subsidiary of Duke Energy Corp.

AT&T tightens

AT&T’s 4.125% notes due 2026 tightened 10 bps during the session to 146 bps bid, according to a market source.

AT&T (Baa1/BBB+/A-) priced a $900 million add-on to the bonds on May 3, 2016 at Treasuries plus 150 bps. The notes originally were sold on Jan. 29, 2016 in a $1.5 billion offering at 195 bps over Treasuries.

The telecommunications company is based in Dallas.

Time Warner flat

Time Warner’s existing 2.95% notes due 2026 were unchanged on the day at 140 bps bid, a market source said.

Time Warner (Baa2/BBB/BBB+) sold $800 million of the notes on May 5, 2016 at a spread of 135 bps over Treasuries.

The media and entertainment company is based in New York.

FedEx firms

FedEx’s 3.3% notes due 2027 were seen early Wednesday at 89 bps offered in secondary trading, according to a market source.

The $450 million tranche priced on Tuesday at a spread of 90 bps over Treasuries.

FedEx’s 4.4% notes due 2047, brought to market on Tuesday in a $750 million tranche at a spread of 140 bps plus Treasuries, traded at 137 bps offered.

FedEx is a Memphis, Tenn.-based package and freight transportation company.

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