NextEra returns to high-grade primary market; Brandywine reopens bonds; BNG eyes dollar issue

By Cristal Cody

Tupelo, Miss., Oct. 3 – Deal volume slowed on Thursday in the high-grade primary market with just two reported issuers.

NextEra Energy Capital Holdings Inc. priced $450 million of three-year guaranteed debentures following its $1 billion offering of 2.75% 10-year bonds sold on Tuesday.

Brandywine Operating Partnership, LP brought $200 million of guaranteed notes in two reopened tranches during the session.

In the sovereign, supranational and agency market, BNG Bank NV started fixed income income investor calls on Thursday for a dollar-denominated offering of five-year sustainability bonds.

High-grade corporate and SSA volume totals more than $11 billion week to date.

The Markit CDX North American Investment Grade 33 index was stable on Thursday at a spread of 63 basis points after softening 3 bps in the previous session.

Lipper US Fund Flows reported corporate investment-grade funds inflows of $733 million for the week ended Wednesday, compared to $1.07 billion in the prior week.

Market focus on Friday is expected to be on the Labor Department’s September non-farm payroll report.

The Labor Department reported Thursday that seasonally adjusted initial jobless claims for the week ended Sept. 28 came in at 219,000, above market analysts’ forecasts of 215,000 and an increase of 4,000 from the previous week’s revised level.

NextEra sells $450 million bonds

NextEra Energy Capital Holdings priced $450 million of 1.95% three-year guaranteed debentures (Baa1/BBB+/A-) at par to yield a spread of 61 bps over Treasuries on Thursday, according to an FWP filed with the Securities and Exchange Commission.

Morgan Stanley & Co. LLC was the bookrunner.

The debentures are guaranteed by NextEra Energy Capital Holdings’ parent company, NextEra Energy, Inc.

NextEra Energy is an energy company based in Juno Beach, Fla.

Brandywine reopens two tranches

Brandywine Operating Partnership sold $200 million of guaranteed notes (Baa3/BBB-) in two reopened tranches during the session, according to a market source and an FWP filing.

The company priced a $100 million add-on to its 4.1% senior notes due Oct. 1, 2024 at 106.315 to yield 2.669%, or a spread of Treasuries plus 133 bps.

Initial price talk was in the Treasuries plus 145 bps to 150 bps area.

The company originally sold $250 million of the 4.1% notes on Sept. 8, 2014 at 99.388 to yield 4.175%, or a Treasuries plus 170 bps spread.

Brandywine also placed a $100 million tap of its 4.55% senior notes due Oct. 1, 2029 at 110.058 to yield 3.331%, or a Treasuries plus 180 bps spread.

The notes were initially talked to print in the Treasuries plus 190 bps to 195 bps area.

Brandywine first sold $250 million of the 4.55% notes in the Sept. 8, 2014 sale at 99.191 to yield 4.625%, or Treasuries plus 215 bps.

Citigroup Global Markets Inc., BofA Securities, Inc., Barclays and Wells Fargo Securities, LLC were the bookrunners.

The notes are guaranteed by Brandywine Realty Trust.

The real estate investment trust for office and industrial properties is based in Radnor, Pa.

BNG Bank prepares deal

BNG Bank (Aaa/AAA/AA+) will begin fixed income investor calls on Thursday for a Rule 144A- and Regulation S-eligible dollar-denominated offering of five-year sustainability bonds, according to a market source.

Citigroup, HSBC Securities (USA) Inc. and TD Securities (USA) LLC are the arrangers.

The banking services company, formerly known as N.V. Bank Nederlandse Gemeenten, is based in The Hague, Netherlands.

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