CIBC prices $1.5 billion notes; steady supply forecast; Coach tightens, Citibank firms

By Cristal Cody

Tupelo, Miss., June 9 – Canadian Imperial Bank of Commerce tapped the primary market on Friday with a $1.5 billion dollar offering of five-year senior notes in fixed- and floating-rate tranches.

Deal action in the high-grade market is expected to pick up in the week ahead after issuance slowed midweek with market attention focused on various events that included former FBI director James Comey’s Senate testimony and the United Kingdom’s general election on Thursday, a source said. Syndicate sources forecast about $20 billion to $25 billion of supply in the upcoming week.

In the secondary market, new bonds priced over the week traded mostly better on Friday.

HCA Inc.’s $1.5 billion split-rated offering of 5½% 30-year senior secured notes (Ba1/BBB-/BB+) sold at par on Thursday traded at 102½ bid late Friday morning and moved higher later in the day to 103 bid, a high-yield bond trader said.

Coach, Inc.’s $1 billion of senior notes (Baa2/BBB-/BBB) priced in two tranches on Tuesday to help fund its acquisition of Kate Spade & Co. tightened about 6 basis points to 7 bps in secondary trading.

Citibank, NA’s $2.5 billion of three-year bank notes (A1/A+/) brought to the primary market on Tuesday firmed about 4 bps to 6 bps.

The Markit CDX North American Investment Grade index was about 1 bp tighter on the day at a spread of 60 bps.

Paul A. Harris contributed to this review

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