British Telecom, ConEd NY, Duke Realty, SBL price; Alberta sells $2.25 billion notes

By Cristal Cody

Tupelo, Miss., Nov. 5 – High-grade issuance on Tuesday included new corporate and sovereign, supranational and agency supply.

British Telecommunications plc priced $1.5 billion of senior notes in two parts.

Consolidated Edison Co. of New York, Inc. sold $600 million of 40-year debentures.

Duke Realty LP priced a $400 million offering of 10-year green senior notes.

SBL Holdings LLC also brought $400 million of seven-year senior notes to the primary market.

In addition, the Province of Alberta sold $2.25 billion of five-year registered global notes on Tuesday.

About $10 billion of bonds priced on Monday, buoyed by renewed confidence in global trade with China, sources report.

Investment-grade supply is expected to reach the $25 billion to $30 billion area over the week.

November volume is forecast to total in the $90 billion to $100 billion range, according to syndicate sources.

So far, week to date volume has been led by Shell International Finance BV’s $4 billion three-tranche deal that priced Monday.

Shell’s bonds traded about 1 basis point to 3 bps tighter in the secondary market, a source said.

The company’s tranche of 2.375% notes due Nov. 7, 2029 improved about 2 bps.

Shell sold $1.5 billion of the 10-year notes at a 68 bps over Treasuries spread.

The Markit CDX North American Investment Grade 33 index eased modestly to end the session at a spread of 51.8 bps.

ConEd NY prints $600 million

Consolidated Edison of New York sold $600 million of 3.7% debentures due Nov. 15, 2059 (A3/A-/A-) at a spread of 140 bps over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The debentures priced at 99.111 to yield 3.743%.

BofA Securities, Inc., Wells Fargo Securities LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC were the bookrunners.

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

British Telecom prices $1.5 billion

British Telecommunications priced $1.5 billion of senior notes (Baa2/BBB/) in two tranches on Tuesday, according to a market source.

The company sold $1 billion of 3.25% 10-year notes at a spread of 150 bps over Treasuries.

Price guidance was in the Treasuries plus 155 bps to 160 bps area.

A $500 million tranche of 4.25% 30-year notes priced with a Treasuries plus 192 bps spread.

Initial price talk was in the Treasuries plus 210 bps area.

Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Mizuho Securities USA Inc. were the bookrunners.

British Telecommunications is a London-based internet and phone services company.

Duke Realty sells notes

Duke Realty priced a $400 million offering of 2.875% 10-year green senior notes (Baa1/BBB+/) at a spread of Treasuries plus 102 bps during the session, according to an FWP filing.

The notes priced at 99.983 to yield 2.877%.

J.P. Morgan Securities, Citigroup Global Markets, Morgan Stanley & Co. LLC, U.S. Bancorp Investments Inc., Jefferies LLC and SunTrust Robinson Humphrey, Inc. were the bookrunners.

Duke Realty is the operating partnership of Indianapolis-based Duke Realty Corp., which owns and operates industrial and health care properties.

SBL upsizes deal

SBL Holdings (/BBB-/BBB-) priced $400 million of 5.125% seven-year senior notes on Tuesday at a spread of 335 bps over Treasuries, according to a market source.

Initial price talk was in the Treasuries plus mid-300 bps area.

The Rule 144A and Regulation S offering was upsized from $300 million.

Citigroup Global Markets and RBC Capital Markets LLC were the bookrunners.

SBL Holdings is a holding company for Topeka, Kansas-based insurer Security Benefit Life Insurance Co.

Alberta prices $2.25 billion

Alberta (Aa1/A+/) priced $2.25 billion of 1.875% five-year global notes at mid-swaps plus 29 bps, or a spread of Treasuries plus 26.65 bps, according to a market source and an FWP filing.

The notes due Nov. 13, 2024 were initially talked to print in the mid-swaps plus 30 bps area.

The issue priced at 99.744 to yield 1.929%.

Barclays, BMO Capital Markets Corp., National Bank Financial Inc. and RBC Capital Markets were the bookrunners.

© 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.