EIB, Neuberger, Healthcare Realty price; Home Depot, Boeing long bonds firm

By Aleesia Forni and Cristal Cody

Virginia Beach, April 15 – European Investment Bank, Neuberger Berman Group LLC and Healthcare Realty Trust Inc. brought to market new bond deals on Wednesday, continuing the relative lull in market activity.

EIB’s newly printed $5 billion five-year global bond came in line with price guidance.

A rare new deal from investment management firm Neuberger Berman Group LLC attracted a strong response from investors during the session.

The deal picked up an order book that was more than four times oversubscribed.

Rounding out the day’s new deals, Healthcare Realty sold its $250 million issue of 10-year notes around 22.5 basis points tight of the mid-point of initial guidance.

Kommunalbanken AS was added to this week’s pipeline, setting talk for a 10-year offering expected to price on Thursday.

Though financial names have unsurprisingly dominated the primary sphere this week with corporate blackouts underway, the pace has still fallen short of earlier predictions.

Roughly $10.5 billion of new issuance has priced this week, with EIB’s new issue accounting for nearly half of that total.

Investment-grade bonds traded mostly better over the session on Wednesday, sources said.

Home Depot, Inc.’s 4.4% bonds due 2045 firmed 2 bps in the secondary market.

Boeing Co.’s 3.5% senior notes due 2045 traded 1 bp tighter.

Wells Fargo & Co.’s 2.15% senior notes due 2020 improved 1 bp in trading.

The Markit CDX North American Investment Grade series 23 index ended the day 1 bp tighter at a spread of 61 bps.

EIB brings $5 billion

The European Investment Bank sold $5 billion of 1.375% five-year global notes (Aaa/AAA/AAA) at mid-swaps flat on Wednesday, according to a market source.

The notes sold in line with talk.

Barclays, BofA Merrill Lynch and TD Securities are the bookrunners.

The lender for the European Union is based in Kirchberg, Luxembourg.

Neuberger offering

Also on Wednesday, Neuberger Berman Group sold $300 million of 4.875% senior notes (Baa3/BBB-/) on Wednesday at 237.5 bps over Treasuries, according to a market source.

Pricing was at 99.377 to yield 4.915%.

The notes sold at the tight end of guidance set in the 250 bps area over Treasuries, having tightened from initial talk set in the 262.5 bps area.

The bookrunners were BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities LLC.

The investment management firm is based in New York.

Healthcare Realty prices tight

Healthcare Realty Trust was in Wednesday’s market with a $250 million issue of 3.875% senior notes (Baa3/BBB-/BBB) due May 1, 2025 priced at Treasuries plus 200 bps, according to a market source and an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.917 to yield 3.885%.

The notes priced at the tight end of guidance set in the 205 bps area over Treasuries. Initial talk was set in the area of 220 bps to 225 bps over Treasuries.

JPMorgan, Barclays and Jefferies & Co. were the bookrunners.

Proceeds will be used for the redemption of the company’s unsecured senior notes due 2017, to repay outstanding borrowings under an unsecured credit facility and for general corporate purposes.

The real estate investment trust for outpatient health-care services properties is based in Nashville.

Kommunalbanken on deck

Kommunalbanken set price talk for a planned benchmark offering of 10-year notes (Aaa/AAA/) in the mid-swaps plus 20 bps area, a market source said.

The bookrunners are JPMorgan, Daiwa, RBC Capital Markets LLC and TD Securities.

The government-funded lender to municipalities is based in Oslo.

Freddie passes

In other primary happenings, Freddie Mac said on Wednesday that it would forgo issuing Reference Notes on its April 15 announcement date, according to a company news release.

The government-sponsored enterprise is based in McLean, Va.

Home Depot improves

Home Depot’s 4.4% notes due 2045 (A2/A/) firmed 2 bps to 111 bps bid, a market source said.

Home Depot sold $1 billion of the bonds at Treasuries plus 105 bps on June 9, 2014.

The home improvement retailer is based in Atlanta.

Boeing firms

Boeing’s 3.5% notes due 2045 firmed 1 bp to 103 bps bid, according to a market source.

The bonds (A2/A/A) priced in a $250 offering at 100 bps over Treasuries on Feb. 18.

The aerospace company is based in Chicago.

Wells Fargo steady

Well’s Fargo’s 2.15% notes due 2020 traded 1 bp tighter at 69 bps bid, according to a market source.

Wells Fargo sold $2 billion of the notes (A2/A+/AA-) on Jan. 26 at Treasuries plus 85 bps.

The bank is based in San Francisco.

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