TD, Societe Generale, Roche, Hewlett Packard, Air Lease among issuers; Wabtec preps deal

By Cristal Cody

Tupelo, Miss., Sept. 10 – High-grade deal volume remained strong on Monday with nearly $9 billion of bonds priced over the session.

Toronto-Dominion Bank led the day’s primary action with a $2 billion two-part sale of senior medium-term notes.

Societe Generale SA came by to price $1.75 billion of senior medium-term notes in two tranches.

Roche Holdings, Inc. also tapped the primary market with a $1.4 billion two-tranche offering of senior notes.

Hewlett Packard Enterprise Co. sold $1.3 billion of senior notes in two parts.

Air Lease Corp. raised $1.2 billion in a two-part senior note deal.

In addition, Discover Bank priced $900 million of 10-year senior notes.

In other market activity on Monday, Westinghouse Air Brake Technologies Corp. (Wabtec) held fixed-income investor calls that will continue on Tuesday for a three-tranche offering of senior notes.

Also, Mitsubishi UFJ Lease and Finance Co. Ltd. (A3/A-/) began a roadshow and fixed-income investor calls for a $500 million Rule 144A- and Regulation S- eligible offering of five-year senior notes, according to a market source.

About $25 billion to as much as $40 billion of volume is forecast by syndicate sources for the week.

Investment-grade issuers priced more than $56 billion of bonds in the previous week, which included Cigna Corp.’s $20 billion 10-part offering of senior notes sold on Thursday.

High-grade credit spreads are expected to rally 5 basis points to 10 bps in September “as supply fears are overdone,” according to a BofA Merrill Lynch note released on Monday.

Although the past week was extremely busy, “new issuance volumes this year slowed during the summer and are now running down 9% for the year,” according to the note. “With relatively less M&A related and European Yankee supply expected between now and year-end, again we expect to end the year down 16%.”

The Markit CDX North American Investment Grade 30 index tightened 2 bps over the session to close at a spread of 58 bps.

TD Bank prices $2 billion

Toronto-Dominion Bank priced $2 billion of senior medium-term notes (Aa1/AA-/) in two tranches in the offering on Monday, according to FWP filings with the Securities and Exchange Commission.

The bank sold $1 billion of two-year floating-rate notes at par to yield Libor plus 26 bps.

Also, $1 billion of 3.15% notes notes due Sept. 17, 2020 priced at a spread of Treasuries plus 45 bps, or 99.979 to yield 3.161%.

TD Securities (USA) LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and BofA Merrill Lynch were the bookrunners.

The bank and financial services company is based in Toronto.

Societe Generale prices

Societe Generale priced $1.75 billion of senior medium-term notes (Baa2/A/A) in two tranches on Monday, according to a market source.

The company sold $1 billion of 4.25% five-year notes with a spread of Treasuries plus 145 bps.

Price guidance on the notes was in the Treasuries plus 145 bps area, plus or minus 5 bps.

A $750 million tranche of 4.75% 10-year notes priced at a Treasuries plus 185 bps spread, compared to guidance in the Treasuries plus 185 bps area, plus or minus 5 bps.

Barclays, Citigroup Global Markets, J.P. Morgan Securities LLC, RBC Capital Markets LLC and Societe Generale CIB were the bookrunners.

Societe Generale is a Paris-based banking and financial services company.

Roche raises $1.4 billion

Roche Holdings sold $1.4 billion of senior notes (Aa3/AA/) in two tranches on the tight side of guidance on Monday, according to a market source.

A $750 million tranche of 3.25% five-year notes were priced at a Treasuries plus 43 bps spread.

Roche placed the $650 million of 3.625% 10-year notes at a spread of 70 bps over Treasuries.

Barclays, J.P. Morgan Securities, Santander Investment Securities Inc. and SMBC Nikko Securities America, Inc. were the bookrunners.

Roche Holdings is an affiliate of Basel, Switzerland-based pharmaceutical company Roche Holdings AG.

Hewlett Packard prints

Hewlett Packard Enterprise priced $1.3 billion of senior notes (Baa2/BBB/BBB+) on Monday in two tranches on the tight side of guidance, according to a market source.

The $800 million tranche of three-year floating-rate notes priced at Libor plus 72 bps.

A $500 million tranche of 3.5% three-year fixed-rate notes were sold at a spread of Treasuries plus 77 bps.

BofA Merrill Lynch, Citigroup Global Markets and Wells Fargo Securities LLC were the bookrunners.

The technology company is based in Palo Alto, Calif.

Air Lease sells two tranches

Air Lease priced $1.2 billion of senior notes (/BBB/BBB) in two tranches on Monday in line with guidance, according to a market source and an FWP filed with the SEC.

The company sold $700 million of 3.5% notes due Jan. 15, 2022 at 99.29 to yield 3.73%, or a spread of 95 bps over Treasuries.

Air Lease priced $500 million of 4.625% 10-year notes at 98.718 to yield 4.787%. The notes priced at a 185 bps plus Treasuries spread.

Bookrunners were J.P. Morgan Securities, Mizuho Securities USA Inc., MUFG, Wells Fargo Securities, ABN Amro Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., Citigroup Global Markets, Commonwealth Bank of Australia, Fifth Third Securities Inc., Goldman Sachs, ICBC Standard Bank plc, KeyBanc Capital Markets Inc., Lloyds Securities Inc., Loop Capital Markets LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, Regions Securities LLC, SunTrust Robinson Humphrey Inc. and TD Securities.

Air Lease is a Los Angeles-based aircraft leasing company.

Discover Bank brings notes

Discover Bank sold $900 million of 4.65% 10-year senior notes (Baa3/BBB/BBB+) at a spread of 173 bps over Treasuries on Monday, according to a market source.

The notes priced on the tight side of guidance in the Treasuries plus 175 bps area, plus or minus 2 bps.

Deutsche Bank Securities Inc., MUFG, Morgan Stanley and RBC Capital Markets were the lead managers.

Discover Bank is a banking and payment services company based in Riverwoods, Ill.

Wabtec gauges interest

Westinghouse Air Brake Technologies is holding fixed-income investor calls through Tuesday for a three-tranche offering of senior notes (/BBB/), according to a market source and a 424B5 filing with the SEC.

The company began the investor calls on Monday.

The deal includes floating-rate notes due in 2021 and two fixed-rate tranches due in 2024 and 2028.

Goldman Sachs, BofA Merrill Lynch, J.P. Morgan Securities and PNC Capital Markets LLC are the bookrunners.

Wabtec is a Wilmerding, Pa.-based provider of products and services for rail and other industrial markets.

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