Boeing, Barclays, Ford, Boardwalk, Northern Trust, Textron, Aon price; T-Mobile eyes deal

By Cristal Cody

Tupelo, Miss., April 30 – Boeing Co. led supply in the high-grade primary market on Tuesday with a $3.5 billion five-tranche offering of senior notes.

Barclays plc also priced $2 billion of fixed-to-floating-rate senior notes due 2025.

Ford Motor Credit Co. LLC came with $1.25 billion of 10-year notes.

Boardwalk Pipelines, LP sold $500 million of 10-year senior notes.

Northern Trust Corp. brought $500 million of 10-year senior notes to the primary market.

Textron Inc. sold $300 million of 10-year notes.

In addition, Aon Corp. placed $750 million of 10-year guaranteed senior notes.

High-grade issuers priced nearly $9 billion of bonds over Tuesday’s session, following more than $9 billion of investment-grade issues sold on Monday.

In other action, T-Mobile U.S. Inc. began a roadshow on Tuesday for an expected investment-grade secured bond offering to fund its acquisition of Sprint Corp.

About $15 billion to $20 billion of supply was expected by market sources for the week.

Last week, investment-grade companies priced more than $6 billion of bonds.

The Markit CDX North American Investment Grade 32 index was steady at a spread of 57 basis points.

Boeing prices $3.5 billion

Boeing priced $3.5 billion of senior notes (A2/A/) in five tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.

Boeing sold $600 million of 2.7% three-year notes at 99.823 to yield 2.762% and a spread of Treasuries plus 52 bps.

A $400 million tranche of 3.1% seven-year notes priced at 99.719 to yield 3.145%, or a Treasuries plus 75 bps spread.

Boeing priced a $600 million reopening of its 3.2% bonds due March 1, 2029 at an 85 bps over Treasuries spread. The notes priced at 98.69 to yield 3.357%.

Boeing first sold $400 million of the 3.2% notes on Feb. 13 at 98.493 to yield 3.378% and a spread of 67 bps over Treasuries. The total outstanding is now $1 billion.

An $850 million tranche of 3.6% 15-year notes was placed at 99.69 to yield 3.627%. The notes priced with a spread of 112 bps over Treasuries.

In the final tranche, Boeing sold $800 million of 3.9% 30-year bonds at 98.296 to yield 3.998% and with a spread of 107 bps over Treasuries.

Citigroup Global Markets Inc., Mizuho Securities USA Inc., SG Americas Securities LLC, BBVA Securities Inc., Commerz Markets LLC and U.S. Bancorp Investments Inc. were the bookrunners for the 2022 notes.

Citigroup, Credit Agricole Securities (USA) Inc., MUFG, Barclays, Deutsche Bank Securities Inc. and Lloyds Securities Inc. were the bookrunners for the 2026 notes.

Citigroup, J.P. Morgan Securities LLC, BofA Merrill Lynch, Deutsche Bank, Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc. were the bookrunners for the 2029 notes.

Citigroup, SMBC Nikko, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets and Santander Investment Securities Inc. were the bookrunners for the 2034 notes.

Citigroup, BNP Paribas Securities, Goldman Sachs & Co. LLC, Barclays, Morgan Stanley and Santander Investment Securities were the bookrunners for the 2049 notes.

Boeing is a Chicago-based aerospace company.

Barclays sells $2 billion

Barclays priced $2 billion of 3.932% fixed-to-floating-rate senior notes due May 7, 2025 at par on Tuesday to yield a spread of 165 bps over Treasuries, according to an FWP filing with the SEC.

The notes (Baa3/BBB/A) will convert May 7, 2024 to a floating rate of Libor plus 161 bps.

Barclays was the bookrunner.

The financial services company is based in London.

Ford Motor Credit prices

Ford Motor Credit sold $1.25 billion of 5.113% 10-year notes at par to yield a spread of Treasuries plus 260 bps on Tuesday, according to an FWP filing with the SEC.

Barclays, BofA Merrill Lynch, Credit Agricole Securities, Goldman Sachs & Co. LLC, BofA Merrill Lynch, RBC Capital Markets, LLC, Citigroup Global Markets, Morgan Stanley and SG Americas Securities LLC were the bookrunners.

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

Aon raises $750 million

Aon sold $750 million of 3.75% 10-year guaranteed senior notes (Baa2/A-/BBB+) on Tuesday at a spread of 125 bps over Treasuries, according to an FWP filing with the SEC.

The notes priced at 99.909 to yield 3.761%.

Bookrunners were Citigroup Global Markets, Barclays and Credit Suisse Securities.

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.

Boardwalk Pipelines prices

Boardwalk Pipelines sold $500 million of 4.8% 10-year senior notes (Baa3/BBB-/BBB-) at a spread of 230 bps over Treasuries on Tuesday, according to an FWP filing with the SEC.

The notes priced at 99.913 to yield 4.811%.

Barclays, J.P. Morgan Securities, MUFG, BB&T Capital Markets, Citigroup Global Markets, HSBC Securities (USA) Inc., Mizuho Securities, U.S. Bancorp Investments and Wells Fargo Securities were the bookrunners.

The notes are fully and unconditionally guaranteed by parent company Boardwalk Pipeline Partners, LP.

Boardwalk Pipelines is a Houston-based owner and operator of natural pipelines and storage facilities.

Northern Trust prints

Northern Trust priced $500 million of 3.15% 10-year senior notes (A2/A+/AA-) at 99.906 and a spread of Treasuries plus 65 bps on Tuesday, according to an FWP filing with the SEC.

Morgan Stanley, BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities were the bookrunners.

The financial services company is based in Chicago.

Textron sells long 10-year notes

Textron priced $300 million of 3.9% 10-year notes (Baa2/BBB/) on Tuesday at 99.911 to yield 3.911%, or a spread of Treasuries plus 140 bps, according to an FWP filing with the SEC.

Citigroup Global Markets, Goldman Sachs, Morgan Stanley and SMBC Nikko were the bookrunners.

The Providence, R.I.-based multi-industry company operates global aircraft, defense, industrial and finance units.

T-Mobile starts roadshow

T-Mobile U.S. began a roadshow on Tuesday for an expected investment-grade secured bond offering to fund its acquisition of Sprint Corp., according to market sources.

The deal size is projected in the mid-$30 billion range.

The investor meetings will continue in the U.S. and Europe markets through May 8.

Barclays, Deutsche Bank Securities and Goldman Sachs are the arrangers.

On April 26, Fitch Ratings affirmed T-Mobile’s senior secured notes at BBB-.

The deal values Sprint at about $59 billion and values the combined company at about $146 billion.

The all-stock acquisition was announced on April 29, 2018 and is expected to close in the summer. However, the merger must receive regulatory approvals.

T-Mobile said in a release announcing the deal that the new company will have a strong closing balance sheet and a fully funded business plan with a foundation of secured investment-grade debt at closing.

Sprint is an Overland Park, Kan.-based telecommunications company.

T-Mobile is a mobile communications subsidiary of Bonn, Germany-based telecommunications company Deutsche Telekom AG.

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