International Finance brings $3 billion as week tops expectations; Monsanto flat to weaker

By Cristal Cody and Aleesia Forni

Virginia Beach, July 2 – International Finance Corp. came to the high-grade primary market on Wednesday with a $3 billion offering of global notes.

The session’s only deal priced on top of talk, which had firmed slightly from earlier guidance.

With an early close on Thursday ahead of the July 4 holiday, Wednesday was likely the last day this week for any primary activity to surface.

“Next week we’ll see some action,” a source said.

This week saw a “surprising” $19 billion of new issuance, topping what sources had predicted to be around a $15 billion week.

Investment-grade bond spreads were little changed to a touch weaker over the session, a trader said.

“It looks like maybe a tad wider,” the trader said.

The Markit CDX North American Investment Grade series 22 index was unchanged at 57 basis points.

Colbun’s new issue priced during the session was not seen in aftermarket trading, according to a trader.

In the secondary market, Monsanto Co.’s bonds traded mostly unchanged to slightly weaker on the day, a trader said.

The bonds have “traded down since it priced,” the trader said.

Monsanto brought a $4.5 billion seven-part offering of senior notes (A3/BBB+/A-) on June 26.

IFC brings $3 billion

International Finance priced $3 billion of 1.75% five-year global bonds at mid-swaps plus 1 bp, according to an informed source.

Pricing was at 99.587 to yield 1.834%.

The notes sold on top of talk, which had tightened from earlier guidance in the mid-swaps plus 2 bps area.

BofA Merrill Lynch, Nomura, BNP Paribas Securities Corp. and J.P. Morgan Securities LLC are the banks on the deal.

The World Bank member and lender to the private sector in developing countries is based in Washington, D.C.

Monsanto mostly unchanged

Monsanto’s tranche of 2.125% notes due 2019 traded at 44 bps offered on Wednesday, according to a trader.

The company sold $500 million of the notes at Treasuries plus 50 bps.

Monsanto’s 3.375% notes due 2024 traded late afternoon were little changed on the day at 77 bps bid, 75 bps offered, the trader said.

Monsanto sold $750 million of the 10-year notes at 85 bps over Treasuries.

The company’s tranche of 4.75% bonds due 2064 also were active during the session and headed out at 134 bps bid, 131 bps offered, according to the trader.

Monsanto sold $750 million of the 50-year bonds at Treasuries plus 140 bps.

The agricultural company is based in St. Louis.

Bank/brokerage CDSs unchanged

Investment-grade bank and brokerage CDS prices were unchanged, according to a market source.

Bank of America Corp.’s CDS costs ended flat at 66 bps bid, 69 bps offered. Citigroup Inc.’s CDS costs were unchanged at 64 bps bid, 67 bps offered. JPMorgan Chase & Co.’s CDS costs ended unchanged at 55 bps bid, 58 bps offered. Wells Fargo & Co.’s CDS costs closed flat at 41 bps bid, 44 bps offered.

Merrill Lynch’s CDS costs were unchanged at 69 bps bid, 73 bps offered. Morgan Stanley’s CDS costs were flat at 65 bps bid, 68 bps offered. Goldman Sachs Group, Inc.’s CDS costs closed flat at 71 bps bid, 74 bps offered.

Paul Deckelman contributed to this review.

© 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.