SunTrust, RBC, Narragansett Electric, National Rural, International Finance sell notes

By Cristal Cody

Tupelo, Miss., July 24 – The investment-grade primary market saw new bond deals on Tuesday from SunTrust Banks, Inc., Royal Bank of Canada, Narragansett Electric Co. and National Rural Utilities Cooperative Finance Corp.

SunTrust Banks sold $1.3 billion of senior notes in three parts.

Royal Bank of Canada priced a $100 billion reopening of floating-rate notes due July 22, 2020 that were first brought to the primary market on Monday.

Narragansett Electric placed $350 million of 10-year notes following fixed-income investor calls in the previous session.

National Rural Utilities Cooperative Finance sold $300 million of three-year floating-rate senior medium-term notes.

In addition, International Finance Corp. priced $2 billion of five-year notes tighter than talk on Tuesday.

More than $5 billion of investment-grade bonds priced during Monday’s session.

Syndicate sources expect about $20 billion to $25 billion of new issuance this week.

The Markit CDX North American Investment Grade 30 index firmed more than 1 basis point to close at a spread of 61 bps.

SunTrust prices $1.3 billion

SunTrust Banks priced $1.3 billion of senior notes (Baa1/BBB+/A-) in three tranches on Tuesday, according to a market source.

The company sold $300 million of four-year floating-rate notes at Libor plus 59 bps.

SunTrust Banks priced $500 million of 3.502% four-year fixed-to-floating-rate rate notes at a spread of 77 bps over Treasuries. The rate will reset to a floating rate of Libor plus 58.5 bps after the initial fixed-rate period.

In the final tranche, the bank sold $500 million of 3.689% six-year fixed-to-floating-rate notes with a spread of 87 bps over Treasuries. The rate will reset to a floating rate of Libor plus 73.5 bps after the initial fixed-rate period.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and SunTrust Robinson Humphrey Inc. were the bookrunners.

The financial holding company for SunTrust Bank is based in Atlanta.

RBC sells $100 million tap

Royal Bank of Canada priced an additional $100 million of floating-rate notes due July 22, 2020 (Aa2/AA-/AA) on Tuesday at par to yield Libor plus 30 bps, according to a 424B2 filing with the Securities and Exchange Commission.

The bank sold $900 million of the notes on Monday at par to yield Libor plus 30 bps.

RBC Capital Markets, LLC was the bookrunner.

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

Narragansett Electric prints

Narragansett Electric (A3a/A-/) priced $350 million of 3.919% 10-year notes in a Rule 144A and Regulation S offering on Tuesday at a spread of 97 bps over Treasuries, according to a market source.

The notes were initially talked to price in the Treasuries plus 115 bps spread area, with guidance later firmed to the Treasuries plus 100 bps area, plus or minus 3 bps.

Barclays, Morgan Stanley & Co. LLC and MUFG were the bookrunners.

The company held fixed-income investor calls on Monday for the issue.

Narragansett Electric, a subsidiary of National Grid USA Service Co., Inc., is an electric and gas company based in Providence, R.I.

National Rural sells floaters

National Rural Utilities Cooperative Finance sold $300 million of three-year floating-rate senior medium-term notes (A2/A/A/) on Tuesday at par to yield Libor plus 37.5 bps, according to an FWP filing with the SEC.

U.S. Bancorp Investments, Inc. was the bookrunner.

The market lender for electric cooperatives is based in Herndon, Va.

IFC prices $2 billion

International Finance (Aaa/AAA) priced $2 billion of 2.875% notes due July 31, 2023 on Tuesday at a spread of mid-swaps plus 2 bps, or Treasuries plus 15.25 bps, according to an informed source.

The notes were initially talked to print with a spread in the mid-swaps plus 4 bps area with guidance later tightened to the mid-swaps plus 3 bps area.

Barclays, J.P. Morgan Securities LLC, Mizuho Securities USA LLC and TD Securities (USA) LLC were the bookrunners.

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

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