Fulton Financial prices two tranches; supply thin amid pandemic fears; CPPIB offers notes

By Cristal Cody

Tupelo, Miss., Feb. 25 – Fulton Financial Corp. priced an upsized $375 million of fixed-to-floating rate subordinated notes in two tranches on Monday as the sole reported issuer in the primary market.

The deal is the only reported high-grade issue to price week to date as issuers pull back from the primary market on concerns of a coronavirus pandemic.

Coming up on Wednesday, CPPIB Capital Inc. is expected to bring a $1 billion Rule 144A and Regulation S offering of five-year notes.

About $25 billion to $30 billion of investment-grade deal volume was expected this week.

The Markit CDX North American Investment Grade 33 index eased another 3 basis points on Tuesday to a spread of 55.58 bps after softening about 6 bps on Monday.

As the coronavirus spreads outside China, “longer maturity IG corporate yields have reached new record lows, which is obviously negative for credit spreads,” according to a BofA Securities research note released on Tuesday.

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