Mitsubishi, Toyota, Amcor, OeKB among day’s issuers; Wells Fargo, Bank of America notes trade

By Cristal Cody

Eureka Springs, Ark., April 19 – High-grade primary action heated up on Tuesday with more than $6 billion priced over the session.

Mitsubishi UFJ Financial Group, Inc. priced $2 billion in add-ons to three tranches of notes first brought to market on Feb. 23.

Toyota Motor Credit Corp. sold $1 billion of one-year floating-rate medium-term notes.

Amcor Finance (USA), Inc. upsized its 10-year senior notes offering by $100 million to $600 million.

Guardian Life Global Funding tapped the primary market with a $500 million sale of five-year notes.

In addition, the Asian Development Bank priced $3.5 billion of notes in two tranches on Tuesday.

Oesterreichische Kontrollbank Aktiengesellsschaft brought a $2 billion dollar-denominated offering of three-year guaranteed global notes over the session.

The Canadian high-grade bond market is expected to see some issuance later in the week, a syndicate source said.

“The market’s in very good shape and there has been lots of demand,” the source said.

In the secondary market, Wells Fargo & Co.’s 3% senior notes due 2026 were among the most traded of the day, a source said. The notes were seen 5 basis points tighter.

Bank of America Corp.’s 3.5% senior notes due 2026 also were active in secondary trading and improved 7 bps.

The Markit CDX North American Investment Grade index closed the day 2 bps tighter at a spread of 76 bps.

Mitsubishi reopens 3 tranches

Mitsubishi UFJ Financial priced $2 billion in add-ons to three tranches of notes first brought to market on Feb. 23, according to a market source on Tuesday.

The bank sold $500 million of floating-rate senior notes due March 1, 2021 at three-month Libor plus 129 bps, in line with guidance. The original $400 million five-year floater priced at par to yield Libor plus 188 bps on Feb. 23. The total outstanding now is $900 million.

Mitsubishi UFJ sold $1 billion in a reopening of its 2.95% senior notes due March 1, 2021 with a spread of 125 bps over Treasuries, on top of guidance. The bank originally sold the $2.1 billion tranche at 99.792 to yield 2.995%, or Treasuries plus 180 bps, on Feb. 23. The total outstanding is $3.1 billion.

In addition, the bank priced $500 million in an add-on to its 3.85% 10-year notes at Treasuries plus 155 bps. The original $2.5 billion tranche of notes due March 1, 2026 priced at Treasuries plus 215 bps in the Feb. 23 offering. The issue has a total outstanding amount of $3 billion.

Morgan Stanley & Co. LLC and MUFG were the lead bookrunners.

Proceeds from the offering will be used to fund the operations of BTMU through loans and for general corporate purposes.

The bank is based in Tokyo.

Toyota arm raises $1 billion

Toyota Motor Credit brought $1 billion of one-year floating-rate medium-term notes at par to yield a spread of three-month Libor plus 33 bps, according to an FWP filing with the Securities and Exchange Commission on Tuesday.

The notes (Aa3/AA-) are due April 24, 2017.

BofA Merrill Lynch, RBC Capital Markets, LLC and Toyota Financial Services Securities USA Corp. were the bookrunners.

Toyota Motor Credit is a Torrance, Calif.-based financing arm of Toyota Motor Corp.

Amcor Finance upsizes

Amcor Finance (USA), Inc. priced $600 million of 3.625% 10-year senior notes at a spread of Treasuries plus 185 bps on Tuesday, according to a market source.

The notes priced on the tight side of guidance of 190 bps, plus or minus 5 bps.

The deal was upsized from $500 million.

The issue (Baa2/BBB) is due April 28, 2026.

BofA Merrill Lynch, Citigroup Global Markets and J.P. Morgan Securities LLC were the bookrunners.

Buena Park, Calif.-based Amcor Finance is a subsidiary of packaging products company Amcor Ltd.

Guardian Life taps market

Guardian Life Global Funding sold $500 million of 2% five-year notes with a spread of 78 bps over Treasuries on Tuesday, a market source said.

The notes due April 26, 2021 priced on the tight side of guidance of Treasuries plus 80 bps, plus or minus 2 bps.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the lead managers.

Guardian Life Global Funding is a financing arm of New York City-based Guardian Life Insurance Company of America.

Asian Development Bank sells $3.5 billion

Asian Development Bank priced $3.5 billion of notes (Aaa/AAA) in two tranches on Tuesday, according to a market source.

The bank sold $2.5 billion of 0.875% notes due April 26, 2018 at 20 basis points over Treasuries.

The $1 billion tranche of 2% notes due April 24, 2026 priced at 27.95 bps plus Treasuries.

BofA Merrill Lynch, BNP Paribas Securities Corp., Goldman, Sachs & Co. and Mizuho Securities USA Inc. were the lead managers.

Asian Development Bank is a Mandaluyong, Philippines-based regional development bank.

OeKB prices $2 billion

Oesterreichische Kontrollbank Aktiengesellsschaft sold $2 billion of 1.125% three-year guaranteed global notes with a spread of 33.3 bps over Treasuries on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

OeKB priced the notes due April 26, 2019 (Aaa/AA+) at 99.648.

Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities plc and RBC Capital Markets, LLC were the lead managers.

The notes are guaranteed by the Republic of Austria.

Vienna, Austria-based OeKB provides financial and information services to Austria’s export industry and the capital market.

Wells Fargo tightens

Wells Fargo’s 3% notes due 2026 were active in secondary trading and traded 5 bps tighter earlier in the day at 123 bps offered, market sources said.

The company sold $3 billion of the notes on Friday at a spread of 130 bps over Treasuries.

San Francisco-based Wells Fargo provides retail, commercial and corporate banking services.

Bank of America stronger

Bank of America’s 3.5% notes due 2026 also were heavily traded and improved 7 bps from Monday to 163 bps offered in morning secondary trading, according to market sources.

The notes (Baa1/BBB+/A) priced in a $2.5 billion tranche on Thursday at a spread of Treasuries plus 173 bps.

The bank is based in Charlotte, N.C.

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