U.S. Bancorp, U.S. Bank price; Council of Europe, EIB sell notes; credit spreads unchanged

By Cristal Cody

Eureka Springs, Ark., Jan. 19 – U.S. Bancorp priced $1.5 billion of five-year fixed- and floating-rate notes on Thursday, a day after the release of its fourth quarter and full year 2016 revenue and earnings.

In addition, subsidiary U.S. Bank NA brought $1.5 billion of three-year notes in fixed- and floating-rate tranches to the primary market during the session.

In other pricing action, the Council of Europe Development Bank sold $1 billion of three-year global notes.

The European Investment Bank also placed $500 million of three-year floating-rate notes.

Elsewhere on Thursday, the Federal Home Loan Bank System announced that it will not issue or reopen a Global Note on the scheduled Jan. 19 calendar date.

The next opportunity to issue a Global Note will be on Feb. 13, according to the news release.

The Markit CDX North American Investment Grade index closed mostly flat at a spread of 66 basis points.

In secondary trading, Morgan Stanley’s new notes (A3/BBB+/A) priced on Tuesday were mixed with the long bonds stronger.

U.S. Bancorp’s $1.5 billion

U.S. Bancorp priced $1.5 billion of five-year fixed- and floating-rate notes (A1/A+/AA) in two parts on Thursday, according to a market source.

The company sold $250 million of floating-rate notes due Jan. 24, 2022 at Libor plus 64 bps.

U.S. Bancorp priced $1.25 billion of 2.625% five-year notes at a spread of Treasuries over 70 bps.

Goldman, Sachs & Co., Morgan Stanley & Co. LLC and U.S. Bancorp Investments Inc. were the bookrunners.

Minneapolis-based U.S. Bancorp is a holding company and parent of U.S. Bank NA.

U.S. Bank raises $1.5 billion

U.S. Bank priced $1.5 billion of three-year notes (A1/AA-/AA) in fixed- and floating-rate tranches on Thursday, according to a market source.

The company sold $400 million of floating-rate notes due Jan. 24, 2020 at Libor plus 32 bps.

The $1.1 billion tranche of 2% three-year notes priced at a spread of Treasuries plus 55 bps.

Goldman Sachs, Morgan Stanley and U.S. Bancorp Investments were the bookrunners.

U.S. Bank is a Cincinnati, Ohio-based banking services company.

Council of Europe prices

The Council of Europe Development Bank (Aa1/AA+/) priced $1 billion of three-year global notes on Thursday at mid-swaps plus 13 bps, or a spread of Treasuries plus 36.3 bps, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes due Jan. 27, 2020 (Aa1/AA+/AA+) came tighter than talk which had anticipated a spread in the mid-swaps plus 15 bps area.

The issue priced at 99.93 to yield 1.899%.

Barclays, J.P. Morgan Securities LLC, RBC Capital Markets LLC and TD Securities (USA) LLC were the lead managers.

Paris-based Council of Europe Development Bank finances social projects to member states, financial institutions and local authorities for projects including public infrastructure and low-income housing.

EIB prices $500 million

The European Investment Bank sold $500 million of three-year floating-rate notes at Libor plus 10 bps on Thursday, according to a market source.

The notes are due Jan. 27, 2020.

Goldman Sachs was the bookrunner.

The European Investment Bank is a lending institution based in Luxembourg.

Morgan Stanley mixed

Morgan Stanley’s 3.625% notes due 2027 were seen early Thursday about 1 bp softer at 144 bps offered, according to a market source.

The notes priced in a $3 billion offering on Tuesday at a spread of Treasuries plus 143 bps.

Morgan Stanley’s 4.375% notes due 2047, brought to market on Tuesday in a $2.25 billion tranche at a Treasuries plus 148 bps spread, tightened to 142 bps offered in secondary trading.

The financial services company is based in New York City.

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