High-grade deal volume revs up; Carlisle sells $1 billion; CBS, Florida Light, ConEd price

By Cristal Cody

Tupelo, Miss., Nov. 13 – Pricing action remained heavy over Monday’s session in the high-grade bond market.

About $25 billion to $30 billion of deal volume is expected for the week, according to a market source.

The Markit CDX North American Investment Grade 29 index closed modestly softer at a spread of 56 basis points.

Carlisle prices $1 billion

Carlisle Cos. Inc. priced $1 billion of notes (Baa2/BBB/) in two tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $400 million of 3.5% seven-year notes at 99.893 to yield 3.517%. The notes priced with a spread of 125 bps over Treasuries.

Carlisle priced $600 million of 3.75% 10-year notes at 99.601 to yield 3.798%, or a Treasuries plus 140 bps spread.

Both tranches priced on the tight side of talk.

J.P. Morgan Securities LLC, BofA Merrill Lynch, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to repay debt under Carlisle’s credit facility and for general corporate purposes.

The diversified manufacturer is based in Scottsdale, Ariz.

CBS raises $900 million

CBS Corp. priced a $900 million two-tranche offering of senior notes (/BBB/BBB) in a Rule 144A private offering on Monday, according to a press release and market source.

The company sold $400 million of 2.9% notes due June 1, 2023 at a Treasuries plus 100 bps spread.

CBS priced $500 million of 3.7% notes due June 1, 2028 with a spread of 150 bps over Treasuries.

Both tranches priced on the tight side of guidance.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities, Mizuho Securities USA Inc. and RBC Capital Markets, LLC were the bookrunners.

Proceeds will be used to redeem all of the company’s $500 million of outstanding 5.75% senior notes due April 15, 2020. The remainder will be used for general corporate purposes, including discretionary contributions to CBS qualified pension plans and repaying short-term borrowings, including commercial paper.

CBS is a broadcasting company based in New York.

Florida Power taps primary

Florida Power & Light Co. sold $700 million of 3.7% first mortgage bonds due Dec. 1, 2047 (Aa2/A/AA-) on Monday at 99.209 to yield 3.744%, according to an FWP filed with the SEC.

The bonds priced with a spread of 87.5 bps over Treasuries.

BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., BofA Merrill Lynch, MUFG, Credit Agricole Securities (USA) Inc., SunTrust Robinson Humphrey, TD Securities (USA) LLC and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds from the deal will be used for general corporate purposes, including to repay a portion of its outstanding commercial paper obligations. As of Nov. 10, Florida Power & Light had about $1,365,000,000 of outstanding commercial paper obligations.

Florida Power & Light is a Juno Beach, Fla.-based electric utility.

ConEd sells two tranches

Consolidated Edison Co. of New York, Inc. priced a $700 million two-part offering of series 2017B and 2017C debentures (A2/A-/A-) on Monday, according to a market source and FWP filings with the SEC.

The company sold $350 million of 3.125% 10-year debentures at 99.974 to yield 3.128%, or a spread of 73 bps over Treasuries. The bonds were talked to price in the Treasuries plus 75 bps area.

In the second tranche, Consolidated Edison priced $350 million of 4% debentures due Nov. 15, 2057 at 99.604 to yield 4.02%. The bonds priced on top of guidance at a Treasuries plus 115 bps spread.

Citigroup Global Markets, J.P. Morgan Securities, Mizuho Securities, KeyBanc Capital Markets Inc. and MUFG were the bookrunners.

Proceeds will be used for general corporate purposes, including repayment of short-term debt.

The electric utility is a subsidiary of New York City-based Consolidated Edison, Inc.

Republic Services prices

Republic Services, Inc. sold $650 million of 3.375% 10-year notes (Baa3/BBB+/BBB) on Monday at 99.832 to yield 3.395%, or a spread of Treasuries plus 100 bps, according to an FWP filed with the SEC.

BNP Paribas Securities Corp., J.P. Morgan Securities, Wells Fargo Securities, Mizuho Securities, MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments were the bookrunners.

Proceeds will be used to repay debt under the company's unsecured credit facilities and for general corporate purposes.

Republic Services is a waste collection company based in Phoenix.

Westlake sells notes

Westlake Chemical Corp. priced a $500 million offering of 4.375% 30-year senior notes (Baa3/BBB/BBB) on Monday at 98.979 to yield 4.437%, according to an FWP filing with the SEC.

The notes were placed with a spread of Treasuries plus 157 bps.

BofA Merrill Lynch, Deutsche Bank Securities Inc. Goldman Sachs & Co. LLC and Wells Fargo Securities were the bookrunners.

The notes will be guaranteed by Hudson Pacific Properties, Inc.

Proceeds will be used with borrowings under the company’s revolving credit facility to redeem all $624,793,000 of the company's 4.625% senior notes due 2021, all $63,207,000 of its subsidiary’s 4.625% senior notes due 2021, all $433,793,000 of its 4.875% senior notes due 2023 and all $16,207,000 of its subsidiary’s 4.875% senior notes due 2023.

Westlake is a manufacturer and supplier of petrochemicals, polymers and building products and is based in Houston.

Spirit Airlines brings certificates

Spirit Airlines, Inc. priced a $420.5 million offering of series 2017-1 pass-through certificates in three parts on Monday, according to an FWP filed with the SEC.

The company sold $247,099,000 of 3.375% class AA certificates (/AA/AA/) at par.

Spirit Airlines priced $82,366,000 of 3.65% class A certificates (/A/A/) at par.

Spirit Airlines also sold $91,035,000 of 3.8% class B certificates (/BBB+/BBB+) at par.

Morgan Stanley & Co. LLC, Citigroup Global Markets, Goldman Sachs and Barclays were the bookrunners.

Proceeds will be used to purchase new aircraft and equipment.

Spirit Airlines is a Miramar, Fla.-based low-fare airline service provider.

DTE prices $400 million

DTE Energy Co. priced $400 million of $25.00-par 2017 series E 5.25% junior subordinated debentures due Dec. 1, 2077 (Baa2/BBB-/BBB-) on Monday, according to an FWP filed with the SEC.

BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities were the bookrunners.

The deal does not have an over-allotment option.

Proceeds will be used to repay short-term borrowings and for general corporate purposes.

The energy company is based in Detroit.

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