Estee Lauder, S&P, Vereit, Albemarle tap primary market; Ontario to reopen green bonds

By Cristal Cody

Tupelo, Miss., Nov. 19 – Estee Lauder Cos. Inc. brought $1.8 billion of senior notes in three tranches to the high-grade primary market on Tuesday.

The five- and 10-year tranches priced on the tight side of talk, while the 30-year notes came better than guidance.

Also, S&P Global Inc. priced a $1.1 billion two-part offering of guaranteed senior notes on the tight side of guidance following fixed income investor calls in the previous session.

Vereit Operating Partnership LP followed up fixed income investor calls on Friday with $600 million of 10-year guaranteed senior notes priced on Tuesday.

Albemarle Corp. brought $500 million of senior notes in two parts to the market during the session.

In addition, BlackRock TCP Capital Corp. priced a $50 million add-on to its 3.9% senior notes due Aug. 23, 2024 at a spread of 250 basis points over Treasuries, bringing the issue’s outstanding amount to $200 million.

In other activity, the Province of Ontario marketed a registered add-on to its Canadian dollar-denominated 2.65% green bonds due Feb. 5, 2025 on Tuesday.

The province originally sold C$1 billion of the bonds on Jan. 25, 2018 and priced a C$950 million reopening of the issue on Jan. 31, 2019.

Investment-grade volume week to date totals more than $12 billion after issuers priced more than $8 billion of notes on Monday.

Deal volume is expected to total about $25 billion this week, according to syndicate sources.

Looking ahead to market action on Thursday, Heineken NV will hold fixed income investor calls via J.P. Morgan Securities LLC, a source said.

The Dutch brewery last tapped the high-grade bond market on March 20, 2017 with a $1.75 billion two-tranche offering of notes.

The Markit CDX North American Investment Grade 33 index softened about 1 bp to close the day at a spread of 52 bps.

Estee Lauder prices $1.8 billion

Estee Lauder priced $1.8 billion of senior notes (A1/A+/) in three tranches on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

A $500 million tranche of 2% five-year notes priced at 99.421 to yield 2.122%, or a spread of 50 bps over Treasuries.

The company sold $650 million of 2.375% 10-year notes at a Treasuries plus 70 bps spread. The notes priced at 99.046 to yield 2.483%.

A $650 million tranche of 3.125% 30-year notes priced at 98.769 to yield 3.189% and a spread of 93 bps over Treasuries.

Estee Lauder priced the five- and 10-year notes on the tight side of talk and placed the 30-year tranche better than guidance.

BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan were the active bookrunners. BNP Paribas Securities Corp. and MUFG were passive bookrunners.

New York-based Estee Lauder is a manufacturer and marketer of skin care, makeup, fragrance and hair care products.

S&P Global prices $1.1 billion

S&P Global priced a $1.1 billion benchmark offering of guaranteed senior notes (A3//A-) in two tranches on Tuesday on the tight side of guidance, according to a market source and an FWP filing.

The agency sold $500 million of 2.5% 10-year notes at 99.833 to yield 2.519% and a Treasuries plus 73 bps spread.

A $600 million tranche of 3.25% 30-year notes priced at 99.24 to yield 3.29%. The notes priced with a 103 bps over Treasuries spread.

Goldman Sachs & Co. LLC, BofA Securities, Citigroup, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., J.P. Morgan and Mizuho Securities USA Inc. were the bookrunners.

The bonds are guaranteed by subsidiary Standard & Poor’s Financial Services LLC.

New York City-based S&P Global provides credit ratings, benchmarks, analytics and data to capital and commodity markets.

Vereit sells $600 million notes

Vereit Operating Partnership sold $600 million of 3.1% 10-year guaranteed senior notes (Baa3/BBB-/BBB) at a spread of 145 bps over Treasuries on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at 98.842 to yield 3.236%.

Wells Fargo Securities LLC, BMO Capital Markets Corp., BofA Securities., J.P. Morgan, Mizuho, SMBC Nikko Securities America Inc., Capital One Securities, Inc., Citigroup, Goldman Sachs, Morgan Stanley, Regions Securities LLC and U.S. Bancorp Investments, Inc. were the bookrunners.

The notes are guaranteed by Vereit, Inc.

Vereit is a Phoenix-based owner and manager of a portfolio of retail, restaurant, office and industrial real estate assets.

Albemarle raises $500 million

Albemarle priced $500 million of senior notes (Baa2/BBB/BBB) in two tranches on Tuesday, according to a market source.

A $200 million tranche of three-year floating-rate notes priced at Libor plus 105 bps, compared to initial talk in the Libor plus 135 bps area.

The company sold $300 of 3.45% 10-year notes at a Treasuries plus 170 bps spread. Initial price talk was in the 200 bps spread area.

BofA Securities and J.P. Morgan were the active bookrunners. Wells Fargo was passive.

Albemarle is a Charlotte, N.C.-based specialty chemicals manufacturing company.

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