FS Investment, Export Development Canada bring deals; JPMorgan, Bank of America firm

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 25 – FS Investment Corp. and Export Development Canada sold new bonds on Tuesday during what is expected to be the last bout of issuance ahead of the Thanksgiving holiday.

The session saw $1,325,000,000 of new issuance, pushing the week’s total to $10.5 billion of supply.

The new offering from FS Investment was upsized to $325 million from initial thoughts of $250 million and sold at the tight end of price guidance.

In other primary action, Export Development Canada sold its $1 billion of five-year notes tight of price talk.

Sources are expecting the rest of the week to remain muted to close out what has been a busy month for the investment-grade bond market.

The primary has seen more than $110 billion of paper price during the month of November.

Investment-grade credit spreads continued to tighten modestly over the session, while bank and financial paper traded flat to stronger in the secondary market, according to market sources.

The Markit CDX North American Investment Grade series 23 index tightened 1 basis point to a spread of 61 bps.

JPMorgan Chase & Co.’s 3.625% senior notes due 2024 have firmed 8 bps in secondary trading since Friday, a source said.

Bank of America Corp.’s 4% notes due 2024 were quoted 2 bps tighter in the secondary market.

Citigroup Inc.’s 3.75% notes due 2024 ended flat, a source said.

FS Investment upsizes

FS Investment sold an upsized $325 million offering of 4.25% senior notes (/BBB/BBB-) due Jan. 15, 2020 on Tuesday at Treasuries plus 275 basis points, according to a market source and a 497AD filing with the Securities and Exchange Commission.

Pricing was at 99.634 to yield 4.329%.

The notes sold at the tight end of talk.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. were the active bookrunners. Keefe, Bruyette & Woods Inc. and Sterne Agee & Leach Inc. were the passive bookrunners.

Proceeds will be used to repay outstanding debt under the company’s financing facilities.

FS Investment is a business development company based in Philadelphia.

EDC new issue

Export Development Canada sold $1 billion of 1.625% five-year notes (Aaa/AAA/) on Tuesday at mid-swaps minus 2 bps, or Treasuries plus 11.85 bps, according to a market source and an FWP filed with the SEC.

The notes were talked in the mid-swaps flat area.

Pricing was at 99.571 to yield 1.715%.

Citigroup Global Markets, Daiwa Securities, Morgan Stanley & Co. LLC and TD Securities were the joint bookrunners.

The government-backed agency for exporters is based in Ottawa.

JPMorgan paper tightens

JPMorgan’s 3.625% senior notes due 2024 (A3/A/A+) tightened 8 bps over the past two sessions to 111 bps offered, according to a market source on Tuesday.

JPMorgan sold $2 billion of the notes on May 6, 2014 at 110 bps plus Treasuries.

The financial services company is based in New York City.

Bank of America firms

In other secondary trading, Bank of America’s 4% notes due 2024 (Baa2/A-/A) improved 2 bps to 126 bps offered, a source said.

Bank of America sold $2.75 billion of the notes on March 27, 2014 at Treasuries plus 137 bps.

The financial services company is based in Charlotte, N.C.

Citigroup stable

Citigroup’s 3.75% notes due 2024 (Baa2/A-/A) were unchanged at 125 bps offered, a market source said.

The bank sold $1.25 billion of the 10-year notes on June 9 at Treasuries plus 115 bps.

Citigroup is based in New York City.

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