Winter storm hampers primary market; World Bank, European Bank price; Verizon improves

By Cristal Cody

Tupelo, Miss., March 14 – A winter snowstorm that hit the Northeast impacted the financial markets on Tuesday and kept most issuers at bay.

The Ford Foundation postponed its $280 million offering of 30-year bonds scheduled to price on Tuesday until later in the week.

The International Bank for Reconstruction and Development tapped the primary market with a $4 billion sale of three-year global notes.

The European Bank for Reconstruction and Development also sold $500 million of three-year floating-rate global notes on Tuesday.

With the Federal Reserve’s monetary policy announcement set for release on Wednesday, little primary activity is expected in the upcoming session, sources report.

About $25 billion to $30 billion of bond volume was expected for the week.

Hanmi Financial Corp. announced plans on Tuesday to price an offering of 10-year fixed-to-floating-rate subordinated notes.

Also, International Finance Corp. is in the near-term deal pipeline with $500 million of three-year notes.

The Markit CDX North American Investment Grade index widened about 1 basis point on Tuesday to end at a spread of 66 bps.

In the secondary market, Verizon Communications Inc.’s new and existing bonds (Baa1/BBB+/A-) traded slightly better over the session.

World Bank prices $4 billion

The International Bank for Reconstruction and Development, known as the World Bank, priced $4 billion of 1.875% global notes due April 21, 2020 on Tuesday at a spread of Treasuries plus 23.05 bps, according to a market source.

BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and RBC Capital Markets LLC were the bookrunners.

The global development financing cooperative is based in Washington, D.C.

European Bank sells floaters

The European Bank for Reconstruction and Development sold $500 million of three-year floating-rate global notes at Libor flat on Tuesday, according to a market source.

The notes (Aaa/AAA/AAA) due March 23, 2020 priced in line with talk.

BofA Merrill Lynch, Barclays and Citigroup Global Markets Inc. were the lead managers.

The financial institution is based in London.

Ford Foundation talks deal

The Ford Foundation postponed its $280 million offering of 30-year 3(a)4 exempt taxable bullet bonds expected to price on Tuesday until Thursday, according to a market source.

The series 2017 bonds due June 1, 2047 (Aaa//) are initially talked to price in the Treasuries plus 85 bps area.

Wells Fargo Securities LLC and Citigroup Global Markets are the lead managers.

Proceeds will be used to fund the renovation of the headquarters building and related costs and payment of swap termination fees.

Ford Foundation is a New York City-based private foundation formed with bequests by Edsel and Henry Ford that seeks to reduce poverty and injustice, strengthen democratic values, promote international cooperation and advance human achievement.

International Finance to price

International Finance (Aaa/AAA) is expected to price $500 million of three-year notes following investor calls, according to a market source.

The company is scheduled to hold global investor calls on Thursday.

Citigroup Global Markets, Credit Agricole Securities (USA) Inc. and J.P. Morgan Securities LLC are arranging the calls.

Washington, D.C.-based International Finance is a member of the World Bank Group.

Verizon better

In secondary trading on Tuesday, Verizon Communications’ 4.125% notes due March 16, 2027 headed out better at 99.60 on Tuesday from where the notes traded at 99.43 earlier in the secondary market, a source said.

The $3.25 billion tranche of 10-year notes priced on Monday at 99.256 and a spread of Treasuries plus 160 bps.

Verizon’s existing 2.625% notes due Aug. 15, 2026 edged up to 89.88 from 88.90 at the start of the day.

Verizon sold $2.25 billion of the notes on July 27 at 99.74 and a spread of Treasuries plus 115 bps.

The telecommunications company is based in New York City.

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