SMBC, Amerisource, Ryder, BNZ price; Ryder firms; secondary quiet

By Aleesia Forni and Cristal Cody

Virginia Beach, Feb. 17 – Sumitomo Mitsui Banking Corp., AmerisourceBergen Corp., Ryder System Inc. and BNZ International Funding Ltd., London Branch priced new bonds on Tuesday to kick off the shortened week.

Sumitomo Mitsui Banking offered a $1.25 billion issue of reopened notes in two parts.

AmerisourceBergen received stellar demand for its new $1 billion two-part issue, attracting an orderbook that was around nine times oversubscribed.

Both tranches sold at the tight end of talk, which had been revised 10 basis points tighter and was roughly 33 bps tight compared to the midpoint of initial guidance.

In other primary happenings, Ryder System sold $400 million of five-year notes around 20 bps tight of guidance, BNZ International Funding priced a $600 million new issue, and Toyota Motor Credit Corp. sold $600 million of floaters.

In total, the primary market hosted $4.85 billion of supply during the session.

Sources are predicted around $20 billion of new issuance for the Presidents’ Day holiday-shortened week.

Secondary market activity was subdued over the day with many “out on break with school kids,” a trader said. “Quiet day.”

The Markit CDX North American Investment Grade index was unchanged at spread of 65 bps.

Ryder’s 2.65% notes due 2020 tightened 4 bps in aftermarket trading.

SMBC brings $1.25 billion

Sumitomo Mitsui Banking priced $1.25 billion of notes (A1/A+/) in two tranches on Tuesday, according to a market source.

The offering included a $500 million add-on to the company’s existing floating-rate notes due Jan. 16, 2018 priced at 100.239 to yield Libor plus 50 bps.

Pricing was at the tight end of talk.

The notes carry a coupon of Libor plus 58 bps.

The original $500 million of notes sold at par on Jan. 8.

There was also a $750 million add-on to its 2.45% notes due Jan. 16, 2020 priced at 98.802 to yield 3.493% with a spread of 88 bps over Treasuries.

The notes sold at the tight end of price talk.

The original $1 billion issue sold at 100 bps over Treasuries on Jan. 8.

Bookrunners were Barclays, SMBC Nikko, Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC.

Sumitomo Mitsui is a Tokyo-based financial services company.

Amerisource prices tight

AmerisourceBergen priced $1 billion of senior notes (Baa2/A-/) in two tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.

A $500 million tranche of 3.25% 10-year notes priced at 99.465 to yield 3.313%, or 117 bps over Treasuries.

The notes sold at the tight end of price talk.

A second tranche was $500 million of 4.25% 30-year notes priced with a spread of Treasuries plus 152 bps. Pricing was at 99.813 to yield 4.261%.

The notes priced at the tight end of price talk.

Proceeds will be used to help fund the acquisition of MWI Veterinary Supply, Inc.

BofA Merrill Lynch and Wells Fargo Securities LLC are the joint bookrunners.

Based in Chesterbrook, Pa., AmerisourceBergen provides drug distribution and related services to pharmaceutical manufacturers in the United States and Canada.

BNZ new issue

BNZ International Funding priced $600 million of 1.9% senior notes (Aa3/AA-/) due 2018 at Treasuries plus 82 bps, according to an informed source.

Pricing was at 99.971 to yield 1.91%.

The notes priced at the tight end of talk.

Proceeds will be used for general corporate purposes.

The bookrunners were Citigroup Global Markets, National Australia Bank and RBC Capital Markets LLC.

The notes are guaranteed by Auckland, New Zealand-based Bank of New Zealand.

Ryder five-years

Ryder System priced $400 million of 2.65% five-year notes (Baa1/BBB/) on Tuesday with a spread of Treasuries plus 105 bps, according to a market source and a 424B3 filed with the SEC.

The notes sold at 99.934.

Pricing was at the tight end of talk, which had firmed 15 bps compared to initial guidance.

BNP Paribas Securities Corp., BofA Merrill Lynch, Mizuho Securities USA Inc. and RBC Capital Markets were the joint bookrunners.

In the secondary market, Ryder’s 2.65% notes due 2020 tightened to 101 bps bid, 98 bps offered, a trader said.

The transportation and logistics company is based in Miami.

Toyota floaters

Toyota Motor Credit priced $600 million of floating-rate medium-term notes, series B, (Aa3/AA-/) at par to yield Libor plus 19 bps, according to an FWP filed with the SEC.

RBC Capital Markets, Toyota Financial Services Securities USA Corp. and Williams Capital Group LP were the agents.

The funding arm of auto manufacturer Toyota is based in Torrance, Calif.

Bank/brokerage CDS costs mostly flat

Investment-grade bank and brokerage CDS prices were mostly flat on Tuesday, according to a market source.

Bank of America Corp.’s CDS costs were flat at 64 bps bid, 67 bps offered. Citigroup, Inc.’s CDS costs were 1 bp lower at 75 bps bid, 80 bps offered. JPMorgan Chase & Co.’s CDS costs were flat at 63 bps bid, 66 bps offered. Wells Fargo & Co.’s CDS costs were unchanged at 44 bps bid, 47 bps offered.

Merrill Lynch’s CDS costs remained at 67 bps bid, 70 bps offered. Morgan Stanley’s CDS costs were unchanged at 73 bps bid, 78 bps offered. Goldman Sachs Group’s CDS costs were also flat at 81 bps bid, 84 bps offered.

Paul Deckelman contributed to this review.

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