Credit Suisse, Kimberly-Clark, Paccar price; high-grade inflows increase; new issues mixed

By Cristal Cody

Tupelo, Miss., Jan. 30 – Investment-grade supply on Thursday included new issues from Credit Suisse AG, New York Branch, Kimberly-Clark Corp. and Paccar Financial Corp.

Credit Suisse sold $2 billion of two-year floating-rate senior notes.

Kimberly-Clark priced $500 million of 30-year senior notes.

Paccar Financial brought $300 million of five-year medium-term notes to the primary market.

More than $10 billion of investment-grade notes have priced week to date.

About $20 billion to $25 billion of deal volume was expected for the week, according to syndicate sources.

Issuers stayed out of the primary market on Monday, while deal volume was light on Wednesday with market focus on the Federal Reserve’s monetary policy rate decision.

Meanwhile, corporate investment-grade fund inflows increased this past week from the week prior, according to Lipper US Fund Flows on Thursday.

Inflows rose to $4.38 billion for the past week ended Wednesday from $4.19 billion in the previous week.

Net inflow year to date is more than $23 billion.

The Markit CDX North American Investment Grade 33 index firmed slightly to close Thursday at a spread of 47.6 basis points.

In the secondary market, Union Pacific Corp.’s $3 billion of registered fixed-rate senior notes (Baa1/A-/) priced in four tranches on Tuesday mostly softened after improving on Wednesday, a source said.

The Omaha-based railroad transportation company’s 3.75% notes due Feb. 5, 2070 had climbed to 102.40 on Wednesday but softened to 101.80 on Thursday.

The notes were priced in a $750 million tranche at 99.955 to yield 3.752% and a 165 bps over Treasuries spread.

Lloyds Banking Group plc’s 2.438% senior fixed-to-fixed rate notes due Feb. 5, 2026 (A3/BBB+/A+) brought to the primary market on Wednesday improved about 4 bps, a source said.

Lloyds sold $1 billion of the notes at par to yield a spread of 100 bps over Treasuries.

Initial price talk was in the Treasuries plus 120 bps area.

Credit Suisse prices $2 billion

Credit Suisse, New York Branch sold $2 billion of floating-rate senior notes due Feb. 4, 2022 (A1/A+) in the deal on Thursday at par to yield SOFR plus 45 bps, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced tighter than initial price talk in the SOFR plus high 50 bps area.

Credit Suisse Securities (USA) LLC was the bookrunner.

The New York branch is part of Zurich-based financial services company Credit Suisse Group AG.

Kimberly-Clark sells notes

Kimberly-Clark came with $500 million of 2.875% senior notes due Feb. 7, 2050 (A2/A/) that priced at a spread of Treasuries plus 87.5 bps, according to a market source and an FWP filing.

Initial price talk was in the Treasuries plus 100 bps to 105 bps area.

The notes were sold at 99.68 to yield 2.891%.

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the active bookrunners. Barclays and HSBC Securities (USA) Inc. were passive lead managers.

The consumer paper products company is based in Irving, Texas.

Paccar taps primary market

Also, Paccar Financial (A1/A+/) sold $300 million of 1.8% five-year medium-term notes on Thursday at 99.919 to yield 1.817% and a spread of Treasuries plus 45 bps, according to an informed source and an FWP filing.

The notes due Feb. 6, 2025 priced on the tight side of guidance in the 50 bps over Treasuries spread area.

J.P. Morgan, Mizuho Securities USA LLC, TD Securities (USA) LLC, Wells Fargo Securities, LLC, Loop Capital Markets LLC, Scotia Capital (USA) Inc., Siebert Williams Shank & Co., LLC and Westpac Capital Markets LLC were the bookrunners.

Paccar Financial is a financing arm of Bellevue, Wash.-based Paccar Inc.

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