Deal action heavy; Boeing, Western Gas, MasterCard, Motorola, National Rural, Ryder price

By Cristal Cody

Tupelo, Miss., Feb. 21 – Deal action picked up considerably on Wednesday ahead of the release of the Federal Reserve’s January policy meeting minutes, according to market sources.

Boeing Co. priced $1.4 billion of senior notes in four tranches.

Western Gas Partners, LP came with $1.1 billion of senior notes in two parts.

MasterCard Inc. brought a $1 billion two-tranche offering of notes.

Motorola Solutions, Inc. priced $500 million of 10-year senior notes.

National Rural Utilities Cooperative Finance Corp. sold $300 million of three-year medium-term notes.

Ryder System, Inc. sold $450 million of five-year medium-term notes.

Also, N.V. Bank Nederlandse Gemeenten priced $2.5 billion of two-year notes.

In other deal activity, the Bank of England announced a benchmark-sized U.S. dollar-denominated offering of three-year notes.

A year ago on Feb. 27, 2017, the Bank of England priced $2 billion of 1.75% notes due March 6, 2020 at a spread of 34 basis points over Treasuries.

Light U.S. high-grade supply was forecast for the week with some market sources predicting as little as $10 billion of volume and others up to about $20 billion of bond issuance.

On Tuesday, three corporate issuers tapped the high-grade bond market.

The Markit CDX North American Investment Grade 29 index eased nearly 1 bp to close at a spread of 54 bps.

Boeing prices four tranches

Boeing priced $1.4 billion of senior notes (A2/A/A) in four tranches on Wednesday, according to a market source and an FWP filed with the Securities and Exchange Commission.

Boeing sold $350 million of 2.8% five-year notes at 98.844 to yield 3.05% and a spread of Treasuries plus 38 basis points.

The company priced $350 million of 3.25% 10-year notes at 97.818 to yield 3.51%. The notes priced with a Treasuries plus 58 bps spread.

Boeing sold $350 million of 3.55% 20-year notes at 95.273 to yield 3.892%, or a Treasuries plus 68 bps spread.

In the final tranche, the company priced $350 million of 3.625% 30-year notes at 92.785 to yield 4.042%. The bonds priced with a spread of 83 bps over Treasuries.

The tranches all priced on the tight side of guidance.

Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC were the bookrunners for the 2023 notes.

Goldman Sachs, Barclays, BofA Merrill Lynch, BBVA Securities Inc., Credit Suisse Securities (USA) LLC and Santander Investment Securities Inc. were the bookrunners for the 2028 notes.

Goldman Sachs, SMBC Nikko, Wells Fargo Securities LLC, Credit Agricole Securities (USA) Inc., Lloyds Securities Inc. and U.S. Bancorp Investments Inc. were the bookrunners for the 2038 notes.

Goldman Sachs, Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Commerz Markets LLC, MUFG and SG Americas Securities, LLC were the bookrunners for the 2048 notes.

Proceeds from the deal will be used for general corporate purposes.

Boeing is a Chicago-based aerospace company.

Western Gas prices $1.1 billion

Western Gas Partners priced $1.1 billion of senior notes (Ba1/BBB-/BBB-) in two tranches on Wednesday, according to a market source.

The company sold $400 million of 4.5% 10-year notes with a spread of 162.6 bps over Treasuries.

Western Gas priced $700 million of 5.3% 30-year notes with a 212.5 bps plus Treasuries spread.

The notes priced on the tight side of guidance.

Mizuho Securities, Credit Suisse Securities, MUFG and TD Securities (USA) LLC were the bookrunners.

Proceeds will be used to repay debt under the company’s revolving credit facility and for general partnership purposes, including capital expenditures.

The Woodlands, Texas-based company owns, develops and operates midstream energy assets in the United States.

MasterCard raises $1 billion

MasterCard priced $1 billion of notes (A2/A/) in two tranches on Wednesday, according to a market source and an FWP filing with the SEC.

The company sold $500 million of 3.5% 10-year notes at 99.766 to yield 3.528% and a spread of 62 bps plus Treasuries.

MasterCard placed $500 million of 3.95% 30-year notes at 99.913 to yield 3.955%. The notes priced with a spread of 77 bps over Treasuries.

Both tranches priced on the tight side of guidance.

Goldman Sachs, J.P. Morgan Securities, Lloyds Securities Inc. and NatWest Markets were the active bookrunners. Passives were Barclays, Citigroup Global Markets, Deutsche Bank Securities, HSBC Securities (USA) Inc., BofA Merrill Lynch, Morgan Stanley and U.S. Bancorp Investments, Inc.

Proceeds will be used for general corporate purposes.

MasterCard is a Purchase, N.Y.-based global payment solutions company.

Motorola brings 10-year notes

Motorola Solutions priced $500 million of 4.6% 10-year senior notes (/BBB-/BBB-) on Wednesday at a spread of 170 bps over Treasuries, according an FWP filing with the SEC.

The notes priced at 99.833 to yield 4.621%.

Deutsche Bank Securities, J.P. Morgan Securities, Citigroup Global Markets, Goldman Sachs and BofA Merrill Lynch were the bookrunners. Motorola Solutions, Inc.

Proceeds will be used for general corporate purposes.

Motorola is a telecommunications company based in Schaumburg, Ill.

Ryder prices $450 million

Ryder System sold $450 million of 3.4% five-year medium-term notes (BBB+/A-) on Wednesday at 99.73 and a spread of Treasuries plus 78 bps, according to a market source and a 424B3 filed with the SEC.

The notes were talked to price in the Treasuries plus 80 bps area.

Lloyds Securities Inc., MUFG, PNC Capital Markets LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.

Ryder System is a Miami-based truck rental and fleet management company.

National Rural sells notes

National Rural Utilities Cooperative Finance sold $300 million of 2.9% series D three-year medium-term notes on Wednesday at 99.889 and a spread of 53 bps over Treasuries, according to a market source and a 424B3 filing with the SEC.

The notes (A2/A/A/) priced on the tight side of guidance in the Treasuries plus 55 bps spread area.

RBC Capital Markets was the bookrunner.

The market lender for electric cooperatives is based in Herndon, Va.

BNG prices $2.5 billion

Bank Nederlandse Gemeenten (Aaa/AAA/AA+) priced $2.5 billion of 2.5% two-year notes on Wednesday tighter than talk at 99.888 and a spread of mid-swaps plus 4 bps, or Treasuries plus 29.55 bps, according to market sources.

The notes due Feb. 28, 2020 were initially talked to price in the mid-swaps plus 5 bps area.

Nomura Securities International, Inc., Barclays, BofA Merrill Lynch and BMO Capital Markets Corp. were the stabilizing managers for the Rule 144A and Regulation S transaction.

The banking services company is based in The Hague, Netherlands.

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