U.S. Bancorp, Scotiabank, Rentenbank bring $3.45 billion bonds; Citigroup, Wells Fargo better

By Cristal Cody

Eureka Springs, Ark., July 19 – High-grade issuers priced $3.45 billion of bonds during Tuesday’s mostly quiet session in the U.S. primary market.

U.S. Bancorp sold $1.35 billion of 10-year senior notes and dropped a planned subordinated note tranche.

Bank of Nova Scotia reopened its 1.65% notes due 2019, which priced in June, to sell a $600 million add-on.

Landwirtschaftliche Rentenbank brought $1.5 billion of 10-year benchmark notes on Tuesday.

In the secondary market, new paper from Citigroup Inc. and Wells Fargo & Co. traded 3 basis points to 2 bps tighter earlier in the session.

The Markit CDX North American Investment Grade index closed 1 bp softer at a spread of 72 bps.

U.S. Bancorp’s $1.35 billion

U.S. Bancorp sold $1.35 billion of 2.375% 10-year series V medium-term senior notes at 99.268 to yield 2.458% on Monday, according to an FWP filing with the Securities and Exchange Commission.

The notes priced with a spread of 90 bps over Treasuries.

U.S. Bancorp Investments, Inc., Barclays and Goldman Sachs & Co. were the bookrunners.

The company had also planned to price series W medium-term subordinated notes, according to a 424B3 filed with the SEC.

U.S. Bancorp is a financial services holding company based in Minneapolis.

Scotiabank prices add-on

Scotiabank priced $600 million in a reopening of its 1.65% senior notes due June 14, 2019 at 100.29 to yield 1.547% on Monday, according to an FWP filing with the SEC.

The notes priced with a spread of 72 bps over Treasuries.

The bookrunners were Scotia Capital (USA) Inc., Citigroup Global Markets Inc., Goldman Sachs, BofA Merrill Lynch and Wells Fargo Securities, LLC.

Scotiabank originally sold $1 billion of the notes on June 9 at 99.994 to yield 1.652%, or 75 bps over Treasuries.

Proceeds will be added to the bank’s funds and used for general business purposes.

The bank is based in Toronto.

Rentenbank brings $1.5 billion

Landwirtschaftliche Rentenbank sold $1.5 billion of 1.75% 10-year benchmark notes at 99.49 on Tuesday, according to an FWP filing with the SEC.

The notes priced at Treasuries plus 25.45 bps.

The notes were talked in the mid-swaps plus 40 bps area, according to a company news release.

Deutsche Bank AG, London Branch, Nomura International plc, Societe Generale and TD Securities (USA) LLC were the bookrunners.

Proceeds will be used to refinance lending activities, including the refinancing of existing liabilities, according to 424B5 filing with the SEC.

The German development agency for agribusiness is based in Frankfurt.

Citigroup improves

Citigroup’s 4.125% subordinated notes due 2028 were quoted trading better early Tuesday at 255 bps offered in the secondary market, a source said.

Citigroup sold $1.5 billion of the notes (Baa3/BBB/A-) on Monday at a spread of 258 bps over Treasuries.

The financial services company is based in New York.

Wells Fargo firms

Wells Fargo’s 2.1% notes due 2021 were seen 2 bps tighter in early secondary trading at 98 bps offered, according to a market source.

The company priced $3 billion of the notes on Monday at a spread of 100 bps over Treasuries.

The retail, commercial and corporate banking services provider is based in San Francisco.

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