Citibank, BNY Mellon, KeyCorp, Nucor, Ausgrid price notes; Bacardi, Caisse hold deal calls

By Cristal Cody

Tupelo, Miss., April 23 – The high-grade bond market saw more bank and financial paper priced on Monday following strong issuance in the previous week.

Citibank, NA sold $3.5 billion of notes in two tranches.

Bank of New York Mellon Corp. came with $1.25 billion of senior medium-term notes in two tranches.

KeyCorp tapped the primary market with a $750 million offering of 10-year senior medium-term notes.

Also on Monday, Nucor Corp. sold $1 billion of notes following the company’s fixed-income investor calls held on Friday.

In addition, Ausgrid Finance Pty Ltd. priced a $1 billion two-part offering of senior notes.

In other investment-grade market activity during the session, Bacardi Ltd. (Ba1/BBB-/BBB-) held fixed-income investor calls for a dollar-denominated issue.

BofA Merrill Lynch, Barclays and Citigroup Global Markets Inc. are the arrangers for the Rule 144A and Regulation S transaction.

Also, Caisse de depot et placement du Quebec (Aaa/AAA/) kicked off a roadshow for a potential dollar-denominated bond deal, according to a market source.

The Quebec City-based public and parapublic pension plan and insurance program manager plans to hold fixed-income investor meetings over the week.

BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and TD Securities (USA) LLC are the arrangers.

About $25 billion to $30 billion of new supply is expected by syndicate sources for the week.

The Markit CDX North American Investment Grade 30 index eased more than 1 basis point on Monday to close at a spread of 62 bps.

Citibank prices $3.5 billion

Citibank priced $3.5 billion of fixed- and floating-rate notes (A1/A+/) in line with price talk on Monday, a market source said.

The company sold $1.5 billion of three-year floaters at Libor plus 32 bps.

The $2 billion tranche of 3.05% two-year fixed-rate notes priced at a spread of 60 bps over Treasuries.

Citigroup Global Markets was the bookrunner.

Citibank is a Sioux Falls, S.D.-based commercial and consumer banking products and services company.

Bank of New York Mellon prints

Bank of New York Mellon (A1/A/AA-) priced $1.25 billion of senior medium-term notes in two tranches on top of guidance on Monday, according to a market source.

The bank sold $750 million of 3.50% five-year notes at a spread of Treasuries plus 70 bps.

Bank of New York Mellon priced $500 million of 3.85% 10-year notes with a Treasuries plus 90 bps spread.

BNP Paribas Securities, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, LLC and BNY Mellon Capital Markets LLC were the bookrunners.

Bank of New York Mellon is a financial products and services company based in New York.

KeyCorp sells notes

KeyCorp (Baa1/BBB+/A-) sold $750 million of 4.1% 10-year senior medium-term notes at a spread of 115 bps over Treasuries on Monday, according to an FWP filing with the SEC.

The notes priced at 99.829 to yield 4.121%.

KeyBanc Capital Markets Inc., Goldman Sachs, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

Cleveland, Ohio-based KeyCorp is a bank holding company for regional bank KeyBank.

Nucor prices two tranches

In other issuance on Monday, Nucor sold $1 billion of notes (Baa1/A-/) in two tranches, according to an FWP filing with the Securities and Exchange Commission.

The company priced $500 million of 3.95% 10-year notes at 99.852 to yield 3.968%, or a spread of Treasuries plus 100 bps.

Nucor sold $500 million of 4.40% 30-year notes at 99.29 to yield 4.443%. The bonds priced with a Treasuries plus 130 bps spread.

J.P. Morgan Securities, BofA Merrill Lynch, Wells Fargo Securities LLC, Deutsche Bank Securities, RBC Capital Markets and U.S. Bancorp Investments, Inc. were the bookrunners.

The steel producer is based in Charlotte, N.C.

Ausgrid raises $1 billion

Ausgrid Finance Pty (Baa1/BBB) also priced a $1 billion offering of five- and long 10-year senior notes in a Rule 144A and Regulation S transaction on Monday, according to a market source.

The company sold $500 million of 3.85% five-year notes with a spread of Treasuries plus 105 bps, on the tight side of guidance in the Treasuries plus 110 bps area, plus or minus 5 bps.

Ausgrid priced $500 million of the 4.35% long 10-year notes on top of price talk at a Treasuries plus 140 bps spread.

ANZ Securities, Inc., BofA Merrill Lynch and HSBC Securities were the bookrunners.

The electricity infrastructure company is based in Sydney, Australia.

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