RBC, NY Life price amid volatility; spreads widen in secondary market; NY Life, Northrop firm

By Aleesia Forni

Virginia Beach, Feb. 4 – Royal Bank of Canada and New York Life Global Funding sold new deals during the session on Wednesday, with falling oil prices and volatility contributing to the souring of the market’s tone during the session.

RBC was able to upsize its issue of floating-rate notes to $1.75 billion due to demand, ultimately pricing the deal in line with talk.

New York Life came to market with an offering of five-year notes priced around 10 basis points tight of the mid-point of initial guidance.

The session also saw Kommunalbanken AS price $500 million of green bonds, Landwirtschaftliche Rentenbank sell an add-on to its existing floaters due 2022 and International Bank for Reconstruction and Development (World Bank) issue $4 billion of seven-year global notes.

Caisse d'Amortissement de la Dette Sociale joined the forward calendar on Wednesday, announcing price talk for a planned offering of seven-year notes.

Wednesday’s new issue activity pushes the week’s total supply to more than $22 billion, closing in on what was predicted to be a $25 billion to $30 billion week.

In the secondary market, high-grade bond spreads continued to leak wider late during the session on Wednesday.

The Markit CDX North American Investment Grade index was 2 bps wider at a spread of 67 bps.

NY Life’s bonds were quoted around 1 bp tighter in aftermarket trading, while the recently priced new deal from Northrop Grumman Corp. traded 2 bps better.

IBRD brings $4 billion

International Bank for Reconstruction and Development (World Bank) sold $4 billion of 1.625% seven-year global notes on Wednesday at mid-swaps plus 1 bp, according to a market source.

The notes were talked in the mid-swaps plus 2 bps.

BNP Paribas Securities Corp., BofA Merrill Lynch, Citigroup Global Markets Inc. and TD Securities were the bookrunners.

The issuer is based in Washington, D.C.

RBC upsizes

Royal Bank of Canada sold an upsized $1.75 billion issue of floating-rate notes (Aa3/AA-/AA) due 2017 at par to yield Libor plus 26 bps on Wednesday, according to an informed source.

Pricing was in line with talk.

RBC Capital Markets LLC was the bookrunner.

Royal Bank of Canada is a financial services company based in Toronto.

NY Life prices tight

New York Life Global Funding priced $750 million of 1.95% five-year bonds (Aaa/AA+/) on Wednesday with a spread of 65 bps over Treasuries, a market source said.

The notes sold at the tight end of talk.

Pricing was at 99.981 to yield 1.954%.

The notes were quoted at 64 bps offered late during the session.

Bookrunners were BofA Merrill Lynch, Goldman Sachs & Co. and J.P. Morgan Securities LLC.

The notes sold via Rule 144A and Regulation S.

The unit of mutual insurance company New York Life Insurance Co. is based in New York.

KBN new issue

Kommunalbanken priced $500 million of 2.125% 10-year green bonds (Aaa/AAA/) at mid-swaps plus 17 bps, or Treasuries plus 30.8 bps, a market source said.

Pricing was at 99.955.

The notes sold in line with price talk.

The sale was done under Rule 144A and Regulation S.

The bookrunners were BofA Merrill Lynch, HSBC, JPMorgan and Morgan Stanley & Co. LLC.

Proceeds will be used to fund climate-friendly projects.

The government-funded lender to municipalities is based in Oslo.

Rentenbank add-on

Landwirtschaftliche Rentenbank priced a $350 million add-on to its existing floating-rate notes (Aaa/AAA/AAA) due Jan. 12, 2022 at 100.076 to yield Libor plus 3 bps, according to an informed source.

The notes have a coupon of Libor plus 4 bps.

The bookrunners were BofA Merrill Lynch, RBC Capital Markets and TD Securities.

The original $150 million issue sold on Dec. 5.

The German development agency for agribusiness is based in Frankfurt.

Cades sets talk

Caisse d'Amortissement de la Dette Sociale set price talk for a planned benchmark offering of seven-year notes in the mid-swaps plus low-20 bps area, a market source said.

Barclays, BNP Paribas Securities, Morgan Stanley and RBS Securities Inc. are bookrunners.

The French debt agency is based in Paris.

Fannie Mae passes

Fannie Mae said that it will not use its Feb. 4 Benchmark Notes announcement date this month, according to an informed source.

The government-backed mortgage lender is based in Washington, D.C.

Northrop trades tighter

In the secondary market, Northrop’s $600 million of 3.85% notes due 2045 traded 2 bps tighter at 146 bps bid, 144 bps offered.

The notes (Baa2/BBB/BBB+) sold with a spread of Treasuries plus 148 bps on Tuesday via bookrunners Deutsche Bank Securities Inc., JPMorgan, BofA Merrill Lynch, Mizuho Securities and MUFG.

The global security company is based in Falls Church, Va.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.