JPMorgan, Citi, National Rural price; Freddie Mac markets notes; bank, financial paper mixed

By Cristal Cody

Tupelo, Miss., April 18 – Investment-grade companies priced more than $10 billion of bonds over Tuesday’s session.

JPMorgan Chase & Co. brought a $5.25 billion three-part offering of global senior notes to the primary market.

Citigroup, Inc. came with $4.5 billion of notes in three tranches.

National Rural Utilities Cooperative Finance Corp. sold $800 million of collateral trust bonds in two parts on Tuesday.

Also, Wells Fargo & Co. priced a C$1 billion Securities and Exchange Commission-registered offering of five-year senior notes.

Looking to Wednesday’s supply, Freddie Mac plans to price a benchmark-sized offering of three-year reference notes.

The Markit CDX North American Investment Grade index eased about 1 basis point on Tuesday to a spread of 69 bps.

In the secondary market, Citigroup’s 4.75% subordinated notes due May 18, 2046 softened about 1 bp.

Mitsubishi UFJ Financial Group, Inc.’s 3.677% senior notes due Feb. 22, 2027 were unchanged.

BB&T Corp.’s 2.75% senior medium-term notes due April 1, 2022 eased 2 bps.

JPMorgan prices $5.25 billion

JPMorgan Chase sold $5.25 billion of global senior notes (A3/A-/A+) in three tranches on Tuesday, according to a market source.

The company priced $1.25 billion of six-year floating-rate notes at Libor plus 90 bps.

JPMorgan sold $1.5 billion of 2.776% six-year fixed-to-floating-rate notes at a spread of Treasuries plus 107 bps.

The $2.5 billion tranche of 3.54% 11-year notes priced at a spread of Treasuries plus 137 bps.

J.P. Morgan Securities LLC was the bookrunner.

Proceeds will be used for general corporate purposes, according to a 424B2 filing with the SEC.

JPMorgan is a New York-based financial services firm.

Citigroup prints $4.5 billion

Citigroup priced $4.5 billion in three tranches of notes (Baa1/BBB+/A) on Tuesday, according to a market source.

The company sold $1.25 billion of five-year floating-rate notes at Libor plus 96 bps.

Citigroup priced $2.25 billion of 2.75% five-year fixed-rate notes at a spread of Treasuries plus 107 bps.

Citigroup placed the $1 billion tranche of 4.281% 31-year fixed-to-floating-rate notes at a spread of 145 bps over Treasuries.

Citigroup Global Markets Inc. was the bookrunner.

Citigroup is a financial services company based in New York.

National Rural prices bonds

National Rural Utilities Cooperative Finance sold $800 million of collateral trust bonds (A1/A/A+) in two tranches on Tuesday, according to FWP filings with the SEC.

The company priced $450 million of 2.4% five-year bonds at 99.972 to yield 2.406% and a spread of Treasuries plus 70 bps.

The $350 million tranche of 3.05% 10-year bonds priced at 99.795 to yield 3.074%, or Treasuries plus 90 bps.

J.P. Morgan Securities, KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., SunTrust Robinson Humphrey Inc. and PNC Capital Markets LLC were the bookrunners.

Proceeds will be used for general corporate purposes, including short-term debt repayment, primarily consisting of commercial paper.

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

Wells Fargo prices C$1 billion

Wells Fargo sold C$1 billion of 2.094% five-year senior notes on Tuesday at par to yield a spread of 109 bps over the Government of Canada bond curve, according to an FWP filing with the SEC.

The notes (A2/A/DBRS: AA) are due April 25, 2022.

TD Securities Inc., Wells Fargo Securities Canada, Ltd., BMO Nesbitt Burns Inc. and CIBC World Markets Inc. were the bookrunners.

The financial services company is based in San Francisco.

Freddie Mac to price

Freddie Mac plans to price a benchmark-sized offering of reference notes due April 20, 2020 on Wednesday, according to a news release.

Citigroup Global Markets, Wells Fargo Securities, Inc. and TD Securities (USA) LLC are the lead managers.

The deal is expected to close on Thursday.

The government-backed mortgage lender is based in McLean, Va.

Citigroup eases

In secondary trading on Tuesday, Citigroup’s 4.75% subordinated notes due May 18, 2046 (Baa3/BBB/A-) traded about 1 bp softer to 187 bps bid, according to a market source.

The notes were priced on Feb. 7 in a $750 million add-on at a spread of 173 bps over Treasuries.

Citigroup originally sold $1 billion of the notes on May 11, 2016 at a spread of Treasuries plus 225 bps.

The financial services company is based in New York.

MUFG flat

MUFG’s 3.677% notes due Feb. 22, 2027 headed out unchanged on the day at 110 bps bid, a market source said.

The $1 billion tranche of 10-year notes (A1/A/A) priced on Feb. 15 at a Treasuries plus 118 bps spread.

The bank is based in Tokyo.

BB&T softens

BB&T’s 2.75% notes due April 1, 2022 traded about 2 bps wider on Tuesday at 68 bps bid, a market source said.

The company priced $1 billion of the five-year notes (A2/A-/A+) on March 16 at a spread of 75 bps over Treasuries.

The bank and financial services company is based in Winston-Salem, N.C.

© 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.