RBC, Deutsche Bank, energy issuers price; Kommuninvest offers notes; Comcast eyes deal

By Cristal Cody

Tupelo, Miss., Oct. 1 – Investment-grade issuance kicked off October on a strong note with a major bond offering from Comcast Corp. looming on the immediate horizon.

On Monday, Royal Bank of Canada priced $1.8 billion of medium-term senior notes in two tranches.

Deutsche Bank AG, New York Branch sold $1.5 billion of senior notes in two parts.

In other issuance, Atmos Energy Corp. priced $600 million of 30-year senior notes.

Tampa Electric Co. placed $375 million of long 30-year bonds.

Brunswick Corp. sold $175 million of $25-par 30-year senior notes.

Also during the session, Comcast (A3/A-/A-) held fixed income investor calls for a multiple note offering expected to total in the $20 billion to $27 billion range, according to a market source.

BofA Merrill Lynch and Wells Fargo Securities LLC are the arrangers.

Earlier in September, Comcast announced it offered $39 billion to win the bid away from Twenty-First Century Fox, Inc. for Sky plc, a London-based media and telecommunications company.

In addition on Monday, Kommuninvest I Sverige AB marketed a benchmark-sized Rule 144A and Regulation S offering of three-year notes expected to price on Tuesday. The notes were initially talked to price in the mid-swaps plus 3 basis points area.

Syndicate sources predict about $40 billion to $45 billion of supply this week on the heels of less than $12 billion of issuance in the previous week.

The Markit CDX North American Investment Grade 31 index tightened more than 1 bp on Monday to a spread of 58 bps.

In the secondary market, bank and financial paper traded mostly flat to about 5 bps tighter, a source said.

Royal Bank of Scotland Group’s $1.75 billion of 5.076% fixed-to-floating rate senior notes due Jan. 27, 2030 that priced a week ago softened about 1 bp on Monday.

RBC prices $1.8 billion

Royal Bank of Canada priced $1.8 billion of medium-term senior notes (A2/A/AA) in two tranches on Monday, according to FWP filings with the Securities and Exchange Commission.

The bank sold $300 million of senior five-year floating-rate notes at par to yield Libor plus 66 bps.

Royal Bank of Canada priced $1.5 billion of 3.7% five-year fixed-rate notes at 99.792 to yield 3.746% and a spread of 78 bps over Treasuries.

RBC Capital Markets, LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC were the lead managers.

Royal Bank of Canada is a Toronto-based financial services company.

Deutsche Bank sells notes

Deutsche Bank, New York Branch (Baa3/BBB+) sold $1.5 billion of senior notes in two tranches on Monday, according to a market source.

The company sold $500 million of floating-rate notes due Feb. 4, 2021 at Libor plus 129 bps.

A $1 billion tranche of 4.25% fixed-rate notes due Feb. 4, 2021 priced at a spread of Treasuries plus 148 bps.

Deutsche Bank Securities Inc. was the bookrunner.

The banking and financial services company is based in Frankfurt.

Atmos Energy prices

Atmos Energy sold $600 million of 4.3% 30-year senior notes (A2/A) on Monday at a spread of Treasuries plus 110 bps, according to an FWP filing with the SEC.

The notes priced at 99.499 to yield 4.33%.

J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, TD Securities (USA) LLC, BNP Paribas Securities Corp., CIBC World Capital Markets Corp. and Credit Agricole Securities (USA) Inc. were the bookrunners.

Atmos Energy is a natural gas distributor and pipeline company based in Dallas.

Tampa Electric taps market

Tampa Electric priced $375 million of 4.45% notes due June 15, 2049 (A3/BBB+) on Monday at a spread of 125 bps over Treasuries, according to a market source.

The notes were initially talked to price with a spread in the Treasuries plus 135 bps area.

The bookrunners were JPMorgan, MUFG, Wells Fargo, RBC Capital Markets and Scotia Capital (USA) Inc.

The company is a Tampa, Fla.-based subsidiary of TECO Energy, Inc., an energy-related holding company.

Wisconsin Electric prints

Wisconsin Electric Power sold $300 million of 4.3% 30-year debentures at 99.464 to yield 4.332% on Monday, according to an FWP filing with the SEC.

The debentures (A2/A-/A+) priced with a spread of 110 bps over Treasuries.

BNP Paribas Securities, PNC Capital Markets LLC, Scotia Capital and TD Securities were the bookrunners.

Wisconsin Electric Power is a Milwaukee-based subsidiary of WEC Energy Group, Inc.

Brunswick prices at par

Brunswick sold $175 million of $25-par 30-year senior notes (Baa2/BBB-/BBB) to yield 6.5% on Monday, according to a press release and an FWP filing with the SEC.

Morgan Stanley, BofA Merrill Lynch and Wells Fargo were the bookrunners.

The deal includes an over-allotment option of up to $26.25 million.

Brunswick is a Mettawa, Ill.-based company that produces recreational and lifestyle products.

RBS eases

Royal Bank of Scotland Group’s 5.076% fixed-to-floating rate senior notes due Jan. 27, 2030 softened about 1 bp to 201 bps bid in the secondary market, a source said on Monday.

The bank sold $1.75 billion of the notes (Baa2/BBB-/BBB+) on Sept. 24 at par to yield a Treasuries plus 200 bps spread.

The coupon will convert to a floating rate of Libor plus 190.5 bps on the Jan. 27, 2029 optional redemption date.

Royal Bank of Scotland Group is a banking and financial services company based in Edinburgh, Scotland.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.