SunTrust, National Rural, Oglethorpe, Kimberly-Clark, Japan Bank price; Alberta on deck

By Cristal Cody

Tupelo, Miss., Oct. 24 – High-grade supply revved up on Wednesday in what turned into the busiest deal session week to date.

SunTrust Bank priced $1.4 billion of senior notes in three tranches.

National Rural Utilities Cooperative Finance Corp. sold $625 million of collateral trust bonds in two parts on the tight side of guidance.

Oglethorpe Power Corp. priced an upsized $500 million of 30-year first mortgage bonds following the company’s fixed-income investor calls held earlier in the month.

Kimberly-Clark Corp. also placed $500 million of 10-year senior notes.

In other issuance, Japan Bank for International Cooperation sold $3 billion of guaranteed senior bonds in two tranches.

More than $12 billion of investment-grade bonds, including $6 billion of corporate supply, have priced over the first three sessions.

Syndicate sources anticipated about $15 billion to $20 billion of deal volume this week.

Coming up on Thursday, the Province of Alberta intends to tap the primary market with a dollar-denominated offering of five-year notes.

Credit spreads widened over the session while stocks remained weak amid market volatility.

The Markit CDX North American Investment Grade 31 index eased about 3 basis points to a spread of 70 bps.

SunTrust Bank prices

SunTrust Bank priced $1.4 billion of senior notes (Baa1/A-/A-) in three tranches on Wednesday, according to a market source.

The company sold $600 million of three-year floating-rate notes at Libor plus 50 bps.

SunTrust Bank priced $300 million of 3.525% three-year fixed-to-floating-rate rate notes at a spread of 70 bps over Treasuries. The rate will reset to a floating rate after the initial fixed-rate period.

Also, a $500 million tranche of 4.05% seven-year fixed-to-floating-rate notes priced with a spread of 103 bps over Treasuries. The notes will have a floating rate after the initial fixed-rate period.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc. and UBS Securities LLC were the bookrunners.

The bank is a subsidiary of Atlanta-based financial holding company SunTrust Banks, Inc.

National Rural sells bonds

National Rural Utilities Cooperative Finance priced $625 million of collateral trust bonds (A1/A/A+) in two tranches on the tight side of guidance on Wednesday, according to a market source and FWP filings with the Securities and Exchange Commission.

The company priced $325 million of 3.9% 10-year bonds at 99.934 to yield 3.908% and a spread of Treasuries plus 78 bps.

The $300 million of 4.4% 30-year bonds priced at 99.505 to yield 4.43%, or a Treasuries plus 108 bps spread.

MUFG, RBC Capital Markets LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments Inc. were the bookrunners.

The market lender for electric cooperatives is based in Herndon, Va.

Kimberly-Clark prints

Kimberly-Clark priced $500 million of 3.95% 10-year senior notes (A2/A/) on Wednesday at 99.844 to yield 3.969%, according to an FWP filing with the SEC.

The notes were sold with a spread of 85 bps over Treasuries.

Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities, HSBC Securities (USA) Inc. and Morgan Stanley were the bookrunners.

The consumer paper products company is based in Irving, Texas.

Oglethorpe in primary

Oglethorpe Power (Baa1//BBB+) priced an upsized $500 million of 5.05% 30-year first mortgage bonds at a spread of 175 bps over Treasuries on Wednesday, according to a market source.

The bonds were initially talked to price in the Treasuries plus 190 bps to 195 bps area.

The deal was upsized from $400 million.

Goldman Sachs and MUFG were the bookrunners.

Oglethorpe Power is an electric supply cooperative based in Tucker, Ga.

Japan Bank raises $3 billion

Japan Bank for International Cooperation priced $3 billion of guaranteed senior bonds (A1/A+/) in two tranches on Tuesday, according to a market source and an FWP filing with the SEC.

The bank sold $2 billion of 3.375% five-year notes at 99.872 to yield 3.403%. The notes priced at a spread of mid-swaps plus 29 bps, or Treasuries plus 44.1 bps. The notes were initially talked to price in the mid-swaps plus 31 bps area.

Japan Bank priced $1 billion of 3.5% 10-year bonds at 99.017 to yield 3.618%. The notes were sold at mid-swaps plus 43 bps, or a Treasuries plus 49.6 bps spread.

Initial price talk on the notes was in the mid-swaps plus 43 bps area.

Goldman Sachs International, BofA Merrill Lynch, Daiwa Capital Markets Europe Ltd. and Nomura International plc were the bookrunners.

The notes will be guaranteed by Japan.

The financial institution is based in Tokyo.

Alberta on tap

Looking ahead, the Province of Alberta (Aa1/AA/) plans to price new dollar-denominated five-year global notes on Thursday, according to a market source.

The bonds due Nov. 1, 2023 were initially talked to price in the mid-swaps plus 25 bps area.

National Bank of Canada Financial Inc., RBC Capital Markets, LLC, Scotia Capital and TD Securities (USA) LLC are the bookrunners.

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