ANZ, Discover Bank price $2 billion notes; Citigroup, JPMorgan firm; credit spreads soften

By Cristal Cody

Eureka Springs, Ark., July 21 – Investment-grade companies priced a reported $2 billion of bonds on Thursday in a mostly quiet summer session.

ANZ New Zealand International Ltd. sold $1 billion of five-year notes in fixed- and floating-rate tranches.

Discover Bank brought $1 billion of 10-year notes to market.

The Markit CDX North American Investment Grade index softened on Thursday to close 1 basis point weaker at a spread of 71 bps.

In the secondary market earlier in the day, Citigroup Inc.’s 4.125% subordinated notes due 2028 firmed about 3 bps from the previous session.

JPMorgan Chase & Co.’s 2.95% senior notes due 2026 that priced a week ago tightened 5 bps.

ANZ New Zealand prices

ANZ New Zealand International sold $1 billion of five-year notes in fixed- and floating-rate tranches on Thursday, according to a market source.

The company placed $250 million of five-year floaters at Libor plus 101 bps.

ANZ New Zealand priced $750 million of 2.125% five-year notes at 105 bps over Treasuries. The fixed-rate notes priced tighter than talk in the Treasuries plus 110 bps area and tighter than initial guidance in the 120 bps area over Treasuries.

ANZ Securities Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the lead managers.

ANZ New Zealand is an Auckland, New Zealand-based funding arm of ANZ Bank New Zealand Ltd.

Discover Bank taps market

Discover Bank sold $1 billion of 3.45% 10-year notes with a spread of 190 bps over Treasuries on Thursday, according to a market source.

The notes due July 27, 2026 priced on the tight side of guidance in the 195 bps area and initial price guidance of 215 bps to 220 bps.

BofA Merrill Lynch, Citigroup, Deutsche Bank Securities Inc. and RBC Capital Markets, LLC were the lead managers.

Discover Bank is a banking and payment services company based in Riverwoods, Ill.

Citigroup firms

Citigroup’s 4.125% subordinated notes due 2028 traded about 3 bps tighter from Wednesday at 252 bps offered early on Thursday, according to a market source.

Citigroup sold $1.5 billion of the notes (Baa3/BBB/A-) on Monday at a spread of 258 bps over Treasuries.

The financial services company is based in New York.

JPMorgan tightens

JPMorgan Chase’s 2.95% notes due 2026 improved 5 bps from the previous day to 136 bps offered in early secondary trading, according to a market source.

JPMorgan Chase sold $3 billion of the notes (A3/A-A+) on July 14 at a spread of 145 bps over Treasuries.

The financial services company is based in New York City.

© 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.