Philip Morris, Mitsubishi, Comcast tap investment-grade primary market; Boeing notes mixed

By Cristal Cody

Tupelo, Miss., Feb. 15 – Investment-grade issuers priced more than $7 billion of bonds over Wednesday’s session, according to market sources.

Philip Morris International Inc. brought $2.8 billion of notes to the primary market.

Mitsubishi UFJ Financial Group, Inc. came with a $2.5 billion three-part offering of senior notes.

Comcast Corp. also sold $1,005,000,000 of 30-year notes.

Consumers Energy Co. placed $350 million of 30-year first mortgage bonds on Wednesday.

Snap-on Inc. sold $300 million of 10-year senior notes.

Also, Oesterreichische Kontrollbank AG priced a $100 million add-on to its floating-rate notes due Nov. 4, 2019.

The Markit CDX North American Investment Grade index closed mostly unchanged at a spread of 63 basis points.

In the secondary market on Wednesday, Boeing Co.’s $900 million three-part offering of senior notes (A2/A/A) sold on Tuesday were mixed.

Secondary trading volume was heavy on Tuesday with $23.7 billion of investment-grade bonds traded, compared to $16.6 billion on Monday, according to Trace.

Philip Morris notes

Philip Morris International priced $2.8 billion of notes (A2/A/A) in four tranches on Wednesday, according to a market source.

The company initially planned to price two fixed-rate tranches and one floating-rate tranche, according to a 424B2 filing with the Securities and Exchange Commission.

Philip Morris sold $700 million of 1.625% notes due Feb. 21, 2019 at a spread of Treasuries plus 50 bps.

The company priced $300 million of floating-rate notes due Feb. 21, 2020 at Libor plus 42 bps.

The $1 billion tranche of 2% notes due Feb. 21, 2020 priced at a spread of 65 bps over Treasuries.

Philip Morris brought $500 million of 2.625% notes due Feb. 18, 2022 at a Treasuries plus 75 bps spread.

The notes priced on the tight side of talk.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the active managers.

Proceeds will be used for general corporate purposes, to refinance debt, to meet working capital requirements or to repurchase common stock.

The producer of cigarette and tobacco products is based in New York.

MUFG raises $2.5 billion

MUFG priced a $2.5 billion three-part offering of senior notes (A1/A/A) on Wednesday, according to a market source.

The company sold $500 million of five-year floating-rate notes at Libor plus 92 bps.

MUFG priced $1 billion of 2.998% five-year fixed-rate notes at a spread of Treasuries plus 100 bps.

The final $1 billion fixed-rate tranche of 3.677% 10-year notes priced at a Treasuries plus 118 bps spread.

MUFG, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and BofA Merrill Lynch were the bookrunners.

Proceeds will be used for operations of Bank of Tokyo-Mitsubishi UFJ, Ltd. through loans, according to a 424B5 filed with the SEC.

The bank is based in Tokyo.

Comcast prints $1 billion

Comcast (A3/A-/A-) sold $1,005,000,000 of 4.45% notes due March 15, 2047 at par on Wednesday, according to an FWP filed with the SEC.

Deutsche Bank AG, Taipei Branch and Citibank Taiwan Ltd. were the managers.

The issue is guaranteed by Comcast Cable Communications, LLC and NBCUniversal Media, LLC.

The notes may be redeemed at par on each March 15 on or after March 15, 2020.

The company has applied to list the notes on the Taipei Exchange.

Proceeds from the deal will be used for working capital and general corporate purposes, which may include repaying the company’s $550 million of 8.875% notes due May 2017 at maturity and a portion of its outstanding commercial paper.

Comcast is a media and technology company based in Philadelphia.

Consumers Energy sells bonds

Consumers Energy sold $350 million of 3.95% 30-year first mortgage bonds on Wednesday with a spread of 87.5 bps over Treasuries, according to an FWP filing with the SEC.

The bonds due July 15, 2047 (A1/A/A+) priced at 99.582 to yield 3.974%.

Citigroup, Goldman Sachs & Co., BofA Merrill Lynch, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

Consumers Energy is an electric and gas utility based in Jackson, Miss.

Snap-on sells 10-year notes

Snap-on placed a $300 million offering of 3.25% 10-year senior notes (A2/A-/A) at 99.906 to yield 3.261% on Wednesday, according to an FWP filing with the SEC.

The notes due March 1, 2027 priced at a spread of Treasuries plus 75 bps.

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

Proceeds will be used to repay a portion of the company’s outstanding commercial paper and for general corporate purposes.

The tool and equipment manufacturer is based in Kenosha, Wis.

OeKB brings add-on

Oesterreichische Kontrollbank priced a $100 million add-on to its floating-rate notes due Nov. 4, 2019 (Aa1/AA+/) with a coupon of Libor plus 16 bps at 100.184 on Wednesday, according to an FWP filing with the SEC.

Deutsche Bank AG, London Branch was the bookrunner.

The notes are guaranteed by the Republic of Austria.

OeKB originally sold $600 million of the notes on Oct. 27 at par to yield Libor plus 16 bps. The total outstanding now is $700 million.

OeKB is a special purpose bank based in Vienna.

Boeing mixed

Boeing’s 2.125% notes due 2022 traded softer on the day at 98.61, weaker than where the notes were seen at the start of the day at 98.70, according to a market source.

Boeing sold $300 million of the five-year notes on Tuesday at 98.79 to yield 2.381% and a spread of Treasuries plus 42 bps.

Boeing’s 2.8% notes due March 1, 2027 headed out slightly better at 97.63 compared to where it was trading early morning at 97.35.

The company priced $300 million of the 10-year notes on Tuesday at 97.698 to yield 3.068% and a Treasuries plus 60 bps spread.

Boeing’s 3.65% notes due March 1, 2047 continued to soften over the day going out at 94.60, weaker than where the notes traded Wednesday morning at 94.94.

Boeing sold $300 million of the 30-year notes on Tuesday at 95.392 to yield 3.912%, or Treasuries plus 85 bps.

Boeing is a Chicago-based aerospace company.

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