Lloyds Bank, Lloyds Banking, Consumers Energy price bonds; Oshkosh holds investor calls

By Cristal Cody

Tupelo, Miss., May 1 – New high-grade issuance on Tuesday included paper priced from Lloyds Bank plc and Lloyds Banking Group plc.

Lloyds Bank sold $2.25 billion of guaranteed notes in two tranches, while Lloyds Banking Group priced $1.5 billion of seven-year senior notes.

Also on Tuesday, Consumers Energy Co. brought $550 million of 30-year first mortgage bonds to the primary market.

In other activity, split-rated issuer Oshkosh Corp. (Ba1/BBB/BBB-) held fixed-income investor calls during the session for a possible bond deal, a source said. BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are the arrangers.

More than $8 billion of bonds priced on Monday from issuers including Daimler Finance North America LLC, Ford Motor Credit Co. LLC, Texas Instruments Inc., Indiana Michigan Power Co., DTE Electric Co. and Kansas City Southern.

Market sources forecast about $25 billion to $30 billion of supply this week and about $130 billion to as much as $160 billion of volume in May.

The Markit CDX North American Investment Grade 30 index ended the day modestly softer at a spread of 61 basis points.

In the secondary market, Apple Inc.’s bonds (Aa1/AA+) headed out mixed but mostly trading about 2 bps to 4 bps tighter across maturities, a source said. The company reported after the market closed Tuesday that it beat second quarter earnings and revenue forecasts.

Lloyds Bank prices notes

In the new issuance, Lloyds Bank priced $2.25 billion of guaranteed notes (A3/BBB+/A+) in two tranches on Tuesday, according to a market source.

The company sold $1 billion of three-year floating-rate notes at a spread of Libor plus 49 bps.

Lloyds priced $1.25 billion of 3.30% senior notes due 2021 at a Treasuries plus 70 bps spread.

HSBC Securities (USA) Inc., J.P. Morgan Securities, Lloyds Securities Inc. and Morgan Stanley & Co. LLC were the bookrunners.

The notes are fully and unconditionally guaranteed by Lloyds Banking Group plc.

Lloyds is a bank and financial services group based in London.

Lloyds Banking sells notes

Lloyds Banking Group priced $1.5 billion of 4.45% seven-year senior notes (A3/BBB+/A+) in its offering on Tuesday at a spread of 153 bps over Treasuries, according to a market source.

The company sold the notes on the tight side of guidance in the Treasuries plus 155 bps area.

HSBC Securities, J.P. Morgan Securities, Lloyds Securities and Morgan Stanley were the bookrunners.

The bank and financial services group is based in London.

Consumers Energy sells bonds

Consumers Energy sold $550 million of 4.05% 30-year first mortgage bonds during the session at a spread of 97 bps over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The bonds (Aa3/A/A+) priced at 98.971 to yield 4.11%.

Goldman Sachs & Co., J.P. Morgan Securities, KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., MUFG, PNC Capital Markets LLC and Scotia Capital (USA) Inc. were the bookrunners.

Consumers Energy is an electric and gas utility based in Jackson, Miss.

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