American Express, BP Capital, GM Financial, New York Bancorp, GATX, ONE Gas price notes

By Cristal Cody

Tupelo, Miss., Nov. 1 – American Express Co. led pricing action in the high-grade bond market on Thursday with a $3 billion three-part offering of senior notes.

In addition, BP Capital Markets America Inc. sold $2 billion of senior notes in two parts.

General Motors Financial Co. Inc. priced $1.35 billion of senior notes in two tranches.

New York Community Bancorp Inc. sold $300 million of 10-year split-rated fixed-to-floating rate subordinated notes.

GATX Corp. brought $300 million of long five-year senior notes to the primary market.

ONE Gas, Inc. also placed $400 million of 30-year senior notes.

High-grade issuers have priced more than $19 billion of bonds week to date, in line with syndicate forecasts.

About $15 billion to $20 billion of supply was predicted for the week.

Issuance is expected to thin as the year winds down with light volume likely in the week ahead due to the mid-term elections, Federal Reserve monetary policy meeting and upcoming Veterans Day holiday, sources report.

Syndicate sources expect about $75 billion to $85 billion of new issuance in November.

With a “lack of bank issuance this earnings season, and most M&A related activity behind us, supply volumes are now falling well behind last year’s pace,” Hans Mikkelsen, an analyst with BofA Merrill Lynch, said in a research note released on Thursday.

The Markit CDX North American Investment Grade 31 index was modestly tighter on the day at a spread of 68 basis points.

Amex sells $3 billion

American Express priced $3 billion of senior notes (A3/BBB+/A) in three tranches during the session, according to a market source.

The company placed $1 billion of three-year floating-rate notes at Libor plus 60 bps.

American Express sold $1.25 billion of 3.7% three-year fixed-rate notes at a Treasuries plus 80 bps spread.

A $750 million tranche of 4.2% seven-year fixed-rate notes priced with a 118 bps spread over Treasuries.

Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and Barclays were the bookrunners.

The credit card services company is based in New York.

BP Capital raises $2 billion

BP Capital Markets America (A1/A-/) priced $2 billion of senior notes on Thursday in two tranches, according to a market source.

The company sold $1 billion of 3.79% notes due Feb. 6, 2024 at a spread of Treasuries plus 83 bps. The notes were guided to price in the Treasuries plus 85 bps area, plus or minus 2 bps. Initial price talk was in the Treasuries plus 95 bps to 100 bps area.

A $1 billion tranche of 4.234% 10-year notes priced on top of guidance with a Treasuries plus 110 bps spread. The notes were initially talked to print in the Treasuries plus 115 bps to 120 bps area.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, NatWest Markets, Societe Generale and UBS Securities LLC were the bookrunners.

BP Capital Markets America is a Chicago-based aviation and marine fuels provider and subsidiary of London-based oil and gas company BP plc.

GM Financial prices

General Motors Financial (Baa3/BBB/BBB-) raised $1.35 billion in its two-part offering of senior notes, according to an FWP filing with the Securities and Exchange Commission.

A $350 million tranche of three-year floating-rate notes priced at par to yield Libor plus 110 bps.

A $1 billion tranche of 4.2% three-year fixed-rate notes priced at 99.978 to yield 4.208%, or a spread of 130 bps over Treasuries.

BBVA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets, Credit Agricole Securities (USA) Inc., Lloyds Securities Inc. and Mizuho Securities USA Inc. were the bookrunners.

General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.

ONE Gas sells notes

ONE Gas (A2/A/) priced $400 million of 4.5% 30-year senior notes on Thursday at a spread of Treasuries plus 118 bps, according to a market source.

The notes were initially talked to price in the Treasuries plus 130 bps spread area.

U.S. Bancorp Investments Inc. and J.P. Morgan Securities were the bookrunners.

ONE Gas is a natural gas distribution company based in Tulsa, Okla.

GATX prices $300 million

GATX sold $300 million of 4.35% senior notes due Feb. 15, 2024 (Baa2/BBB/) on Thursday at 99.936 to yield 4.365% and a spread of 140 bps over Treasuries, according to a market source and an FWP filing with the SEC.

The notes priced on the tight side of guidance in the Treasuries plus 145 bps area, plus or minus 5 bps.

Citigroup Global Markets, BofA Merrill Lynch and Morgan Stanley were the bookrunners.

GATX is a transportation leasing company based in Chicago.

New York Bancorp prints

New York Community Bancorp priced $300 million of 10-year split-rated fixed-to-floating rate subordinated notes (Baa2/BB/BBB-) at par to yield 5.9%, according to a market source and an FWP filing with the SEC.

Initial price talk on the notes was in the 5.875% to 6% yield area.

The notes will convert Nov. 6, 2023 to a floating rate of Libor plus 278 bps.

Goldman Sachs & Co. LLC, Sandler O’Neill + Partners, LP, Credit Suisse Securities (USA) LLC, Jefferies LLC and BofA Merrill Lynch were the bookrunners.

The bank is based in Westbury, NY.

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