Goldman Sachs, American Honda Finance price; Hexcel upsizes; credit spreads firm; MPLX better

By Cristal Cody

Tupelo, Miss., Feb. 13 – More than $5 billion of investment-grade bonds priced over Monday’s session.

Goldman Sachs Group Inc. came with a $3 billion three-part reopening of notes.

American Honda Finance Corp. priced $1.75 billion of fixed- and floating-rate medium-term notes.

Hexcel Corp. priced an upsized $400 million of 10-year senior notes.

Highwoods Realty LP priced a $300 million offering of 10-year notes on Monday.

Also, Japan Bank for International Cooperation announced plans to price guaranteed bonds.

About $20 billion to $25 billion of high-grade supply is forecast for the week.

The Markit CDX North American Investment Grade index tightened 2 basis points to close the day at a spread of 63 bps.

In the secondary market, MPLX LP’s $2.25 billion of senior notes (Baa3/BBB-/BBB-) priced in two tranches on Tuesday traded better over the session.

Goldman Sachs reopens

Goldman Sachs Group priced $3 billion in a three-part reopening of notes (A3/A/) on Monday, according to a market source.

Goldman Sachs sold $750 million of floating-rate notes due April 6, 2022 with a coupon of Libor plus 111 bps at 100.322 to yield Libor plus 105 bps.

The company originally sold $1 billion of the notes on Jan. 23 at par to yield Libor plus 111 bps. The total outstanding is $1.75 billion.

Goldman Sachs priced $1 billion of 3% five-year notes at 99.711 to yield 3.061% and a spread of 115 bps over Treasuries.

The tranche originally priced in a $2.25 billion offering on Jan. 23 at 99.68 to yield 3.067% and a spread of 120 bps over Treasuries. The total outstanding now is $3.25 billion.

Goldman Sachs brought $1.25 billion of 3.85% notes due Jan. 26, 2027 at 100.146 to yield 3.832%. The 10-year notes priced with a spread of Treasuries plus 140 bps.

Goldman Sachs originally sold $1.75 billion of the 10-year notes on Jan. 23 at 99.72 to yield 3.884%. The 10-year notes priced with a spread of Treasuries plus 148 bps. The issue now has $3 billion outstanding.

Goldman, Sachs & Co. was the bookrunner.

Goldman Sachs Group is a New York-based banking, securities and investment management company.

American Honda Finance prices

American Honda Finance priced $1.75 billion of series A fixed- and floating-rate medium-term notes (A1/A+/) on Monday, according to FWP filings with the Securities and Exchange Commission.

The company sold $500 million of three-year floating-rate notes at par to yield Libor plus 34 bps. The interest rate will initially reset on May 14, 2017 and will reset on each interest payment date.

The $750 million tranche of 2% three-year fixed-rate notes priced at 99.858 to yield 2.049% and a spread of Treasuries plus 57 bps.

American Honda Finance priced $500 million of 2.9% seven-year notes at 99.373 to yield 3% and a spread of 77 bps over Treasuries.

The bookrunners were J.P. Morgan Securities LLC, BofA Merrill Lynch, Mizuho Securities USA Inc. and SMBC Nikko Securities America, Inc.

American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.

Hexcel sells $400 million

Hexcel priced an upsized $400 million of 3.95% 10-year senior notes (Baa3/BBB-/) on Monday at 99.559 to yield 4.004%, according to a market source and an FWP filing with the SEC.

The notes due Feb. 15, 2027 priced with a spread of Treasuries plus 157 bps, on the tight side of guidance in the Treasuries plus 160 bps area, plus or minus 3 bps.

The deal was upsized from $300 million.

BofA Merrill Lynch and Goldman Sachs & Co. were the bookrunners.

The interest rate will be subject to adjustment if Moody’s Investors Service or S&P Global Ratings downgrades the company’s ratings or downgrades and then subsequently upgrades the ratings, according to a 424B5 filing with the SEC.

Proceeds from the deal will be used to reduce debt under Hexcel’s revolving credit facility and for general corporate purposes.

Hexcel is a composites company based in Stamford, Conn.

Highwoods Realty prices

Highwoods Realty priced a $300 million offering of 3.875% 10-year notes on Monday with a spread of 160 bps over Treasuries, according to an FWP filing with the SEC.

The notes due March 1, 2027 (Baa2/BBB/) priced at 98.667 to yield 4.038%.

BofA Merrill Lynch, Jefferies LLC, Wells Fargo Securities LLC, BB&T Capital Markets and U.S. Bancorp Investments, Inc. were the bookrunners.

Proceeds will be used to repay or repurchase debt, including the company’s unsecured notes due March 15, 2017 or borrowings under its $475 million revolving credit facility, and for general corporate purposes.

The real estate investment trust is based in Raleigh, N.C.

MPLX improves

MPLX’s 4.125% notes due March 1, 2027 climbed to 100.18 going out from where the bonds traded at 99.94 early Monday, according to a market source.

The $1.25 billion tranche of 10-year notes priced on Tuesday at 99.834 to yield 4.145% and a spread of Treasuries plus 175 bps.

MPLX’s $1 billion offering of 5.2% notes due March 1, 2047, priced at 99.304 to yield 5.246%, or Treasuries plus 220 bps, edged up to 100.66 in afternoon trading. The notes were quoted at the start of the day at 100.26.

MPLX is a Findlay, Ohio-based owner, operator and developer of crude oil pipeline and midstream assets in the United States.

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