2nd UPDATE: Corporates Bring At Least $1.75 Billion Of Bonds To Market

Companies approached the U.S. dollar market Tuesday with a view to selling at least $1.75 billion of investment-grade corporate bonds, according to people familiar with the transactions on tap.

Industrial gases producer Praxair Inc. (PX) and French financial services firm Compagnie de Financement Foncier both announced benchmark-sized deals--for a minimum of $500 million each; data center provider Digital Realty Trust L.P. brought a $400 million deal, increased from a planned $250 million; and the credit arm of motorcycle maker Harley-Davidson Inc. (HOG) raised $450 million, up from $350 million planned.

Praxair's bonds, which mature in March 2021 and are rated A2 by Moody's Investors Service and A by Standard & Poor's, priced at a slight discount to yield 4.105% or 0.67 percentage point over comparable Treasurys. Initial guidance had been 0.70 percentage point over the risk-free rate.

Proceeds are expected to help it repay short-term debt, fund share buybacks or be used for other general corporate purposes. The deal was led by Bank of America Merrill Lynch and Citigroup as active bookrunners, and Deutsche Bank Securities and HSBC as passive bookrunners.

Compagnie de Financement Foncier, a unit of Credit Foncier--which is in turn owned by French conglomerate Groupe BPCE--also has a benchmark-sized bond, maturing March 2014 and rated AAA by all three ratings agencies. That sale is being led by Barclays Capital, BNP Paribas, Citi, J.P. Morgan Chase & Co. and Natixis. Price guidance is in the area of 0.85 percentage point over midswaps, people familiar with the deal said.

Digital Realty Trust L.P.'s 10-year senior unsecured bonds priced to yield 5.279%, or 1.85 percentage points over Treasurys--inside price guidance of 1.875 percentage points, people familiar said. The bonds will be fully guaranteed by its general partner, Digital Realty Trust Inc. That deal, led by Morgan Stanley, Citi, BofA, Credit Suisse and Deutsche Bank, will help the issuer repay borrowings on its revolving credit facility, acquire more properties, fund developments and increase its working capital. As of Dec. 31, the firm had borrowed $333.5 million on its revolver, it said in a regulatory filing.

Meanwhile, Harley-Davidson Financial Services Inc. sold five-year bonds guaranteed by Harley-Davidson Credit Corp. via Citi, Deutsche Bank and J.P. Morgan. The bonds priced to yield 3.888% or 1.75 percentage points over Treasurys. Proceeds will be used to pay down commercial paper debt. The bonds are rated Baa1 by Moody's, BBB by S&P and BBB+ by Fitch Ratings.

-By Katy Burne, Dow Jones Newswires; 212-416-3084; katy.burne@dowjones.com

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