Wells Fargo, Coca-Cola, Ventas Realty tap primary market; Lam firms; credit spreads better

By Cristal Cody

Eureka Springs, Ark., May 25 – May is topping out with nearly $156 billion of investment-grade corporate bond issuance brought to market through Wednesday.

The pace of issuance was steady over the day.

Wells Fargo Bank NA priced $2.25 billion of three-year notes in fixed- and floating-rate tranches.

Coca-Cola Co. placed $1.73 billion of senior notes (Aa3/AA-/A+) in three tranches.

Ventas Realty, LP sold an upsized $400 million of seven-year senior notes during the session.

Landwirtschaftliche Rentenbank priced an upsized $600 million of five-year floating-rate notes.

In addition, the Province of British Columbia sold $750 million of 10-year bonds.

The Markit CDX North American Investment Grade index closed the day more than 2 basis points tighter at a spread of 77 bps.

In secondary trading earlier in the day, Lam Research Corp.’s senior notes (Baa1/BBB) priced on Monday traded more than 10 bps tighter.

HSBC Holdings plc’s 3.9% subordinated notes due 2026 sold in the previous week improved about 2 bps.

Wells Fargo sells $2.25 billion

Wells Fargo Bank priced $2.25 billion of three-year notes (Aa2/AA-/AA) in fixed- and floating-rate tranches on Wednesday, according to a market source.

A $500 million floating-rate tranche of three-year notes priced at Libor plus 60 bps.

Wells Fargo Bank sold $1.75 billion of 1.75% notes due May 24, 2019 with a spread of 70 bps over Treasuries.

Wells Fargo Securities, LLC was the bookrunner.

The Sioux Falls, S.D.-based bank is a subsidiary of Wells Fargo & Co.

Coca-Cola prices $1.73 billion

Coca-Cola sold $1.73 billion of senior notes (Aa3/AA-/A+) in three tranches on Wednesday, according to a market source and a 424B5 filing with the Securities and Exchange Commission.

The company priced $225 million of floating-rate notes due Nov. 16, 2017 at Libor plus 5 bps.

In the second tranche, Coca-Cola sold $1 billion of 1.375% notes due May 30, 2019 at 32 bps over Treasuries, on the tight side of talk of 35 bps, plus or minus 3 bps, over Treasuries.

The final $500 million tranche of 2.55% notes due June 1, 2026 priced on the tight side of guidance with a spread of 68 bps plus Treasuries. The notes were talked at Treasuries plus 70 bps, plus or minus 2 bps.

Barclays, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. were the bookrunners.

Proceeds will be used for general corporate purposes.

Coca-Cola is an Atlanta-based beverage company.

Ventas sells seven-year notes

Ventas Realty sold an upsized $400 million of 3.125% seven-year senior notes on Wednesday with a spread of 155 bps over Treasuries, according to a market source and a 424B5 filing with the SEC.

The notes due June 15, 2023 (Baa1/BBB+/BBB+) priced on the tight side of guidance of Treasuries over 160 bps, plus or minus 5 bps.

The deal was upsized from $350 million.

The bookrunners were Citigroup, Jefferies & Co., Morgan Stanley & Co. LLC and Wells Fargo.

The notes are guaranteed by Ventas, Inc.

Proceeds will be used to purchase tender offer notes and for working capital and other general corporate purposes.

The real estate investment trust for housing and health-care properties is based in Chicago.

Rentenbank sells floaters

Landwirtschaftliche Rentenbank sold an upsized $600 million of floating-rate notes due June 3, 2021 on top of guidance at Libor plus 25 bps on Wednesday, according to a market source.

The deal size was increased from $500 million.

Barclays, Deutsche Bank AG, London Branch and HSBC Securities (USA) Inc. were the managers for the Rule 144A and Regulation S offering.

The German development agency for agribusiness is based in Frankfurt.

B.C. brings dollar bonds

British Columbia sold $750 million of 2.25% 10-year series BCUSG-9 bonds at 99.511 to yield 2.305%, according to an FWP filing on Wednesday with the SEC.

The bonds due June 2, 2026 (Aaa/AAA) priced at 59 bps plus mid-swaps, or 45.1 bps over Treasuries.

BMO Capital Markets Corp., RBC Capital Markets Corp., HSBC and National Bank of Canada Financial Inc. were the lead managers.

Proceeds will be paid into the province’s consolidated revenue fund and may be used for the purpose of lending money to British Columbia government bodies.

Lam tightens

Lam Research’s 3.9% notes due 2026 were quoted early Wednesday trading at 198 bps offered in the secondary market, a source said.

The $1 billion tranche of 10-year notes priced on Monday at 210 bps over Treasuries.

Lam Research is a Fremont, Calif.-based semiconductor equipment company.

HSBC improves

HSBC’s 3.9% notes due 2026 firmed about 2 bps from Tuesday to 204 bps offered in secondary trading earlier in the session, according to a market source.

The company sold $2.5 billion of the notes (A1/A/AA-) on May 18 at Treasuries plus 210 bps.

London-based HSBC is a banking and financial services group.

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