Royal Bank of Canada taps U.S. market; Morgan Stanley paper tightens; Bank of America flat

By Cristal Cody

Tupelo, Miss., Oct. 23 – High-grade issuers including Royal Bank of Canada tapped the bond market on Friday.

Royal Bank of Canada sold $1.5 billion of 2.35% five-year senior medium-term notes at a spread of 95 basis points over Treasuries.

First Horizon National Corp. and ACE INA Holdings Inc. also were expected to tap the bond market.

In other new issuance, JPMorgan Chase & Co. detailed its $3 billion two-part sale of five-year fixed- and floating-rate senior notes.

Investment-grade bonds were flat to tighter in secondary trading, while credit spreads improved during the session.

Morgan Stanley’s 4% senior notes due 2025 tightened 9 bps on the bid side on Friday.

Goldman Sachs Group Inc.’s new paper traded 4 bps to 5 bps tighter earlier in the day.

Bank of America Corp.’s 3.875% senior notes due 2025 headed out flat.

The Markit CDX North American Investment Grade 25 index firmed 3 bps to close at a spread of 77 bps.

RBC prices $1.5 billion

Royal Bank of Canada sold a U.S. dollar-denominated $1.5 billion offering of 2.35% five-year senior medium-term notes at 99.953 to yield 2.36% on Friday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The series G notes (Aa3/AA-/AA) priced with a spread of 95 bps over Treasuries.

A planned tranche of five-year floating-rate notes was dropped from the transaction.

RBC Capital Markets LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

Royal Bank of Canada is a Toronto-based financial services company.

JPMorgan’s $3 billion deal

JPMorgan Chase sold $3 billion of five-year fixed- and floating-rate senior notes (A3/A/A+) in two tranches on Thursday, according to FWP filings with the SEC.

The $2.5 billion tranche of 2.55% fixed-rate notes due Oct. 29, 2020 priced at 99.897 to yield 2.572%. The notes printed at a spread of 123 bps over Treasuries.

JPMorgan also priced $500 million of five-year floating-rate notes at par to yield Libor plus 120.5 bps.

JPMorgan was the bookrunner.

The New York City-based financial services company plans to use the proceeds for general corporate purposes.

Morgan Stanley tightens

Morgan Stanley’s 4% notes due 2025 headed out 9 bps tighter at 150 bps bid, a market source said.

The notes traded 2 bps tighter over the morning at 150 bps offered.

Morgan Stanley sold $3 billion of the notes (A3/A-/A) on July 20 at Treasuries plus 165 bps.

The financial services company is based in New York City.

Goldman improves

Goldman’s 4.25% subordinated notes due 2025 firmed 4 bps to 211 bps offered earlier in the session, according to a market source.

Goldman sold $2 billion of the notes (Baa2/BBB+/A-) on Oct. 16 at a spread of Treasuries plus 230 bps.

The company’s 4.75% bonds due 2045 were quoted 5 bps tighter early Friday at 176 bps offered.

The bonds (A3/A-/A) priced in a $1.75 billion tranche in the Oct. 16 sale at Treasuries plus 192 bps.

The financial services company is based in New York City.

Bank of America unchanged

Bank of America’s 3.875% senior notes due 2025 were quoted flat on the day at 154 bps bid, a market source said.

Bank of America sold $2.5 billion of the notes (Baa1/A-/A) on July 27 at a spread of 167 bps over Treasuries.

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

© 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.