Wells Fargo, Credit Suisse price ahead of winter storm; Goldman Sachs, JPMorgan firm

By Aleesia Forni and Cristal Cody

Virginia Beach, Jan. 26 – Wells Fargo & Co., Credit Suisse, New York Branch, Union Pacific Corp. and Synchrony Financial hit Monday’s primary ahead of what is predicted to be a massive blizzard for the northeastern United States.

Wells Fargo came to market with $2.65 billion of five-year notes in fixed- and floating-rate tranches priced at the tight end of guidance.

Credit Suisse also issued a two-part offering in fixed- and floating-rate tranches.

Union Pacific priced a $1.15 billion sale of notes in three tranches around 10 basis points to 15 bps tight of initial guidance, while Synchrony Financial sold $1 billion of notes in fixed- and floating-rate tranches due 2020.

In other primary happenings on Monday, Penske Truck Leasing Co. LP nearly doubled its initial size thoughts, launching a $900 million offering at the tight end of price talk.

TTX Co. and SVB Financial Group were each in the market with $350 million offerings.

Rounding out the day’s new deals, the European Bank for Reconstruction and Development (EBRD) priced a $400 million add-on to its existing notes due 2019.

In total, the high-grade primary hosted more than $8.6 billion of new issuance to kick off the week.

With thinly staffed desks expected for Tuesday’s session, sources are predicting light activity in the primary sphere.

“Doubt there will be much happening tomorrow,” one source said.

Bonds were mostly stronger over the day as activity slowed from heavy snow in New York, market sources said.

Goldman Sachs Group Inc.’s 3.85% notes due 2024 traded 7 bps better from where the paper headed out on Friday.

JPMorgan Chase & Co.’s 3.625% senior notes due 2024 were quoted more than 5 bps tighter.

Bank of America Corp.’s 4% notes due 2024 were unchanged.

Morgan Stanley’s 3.875% notes due 2024 traded flat to 1 bp softer.

The Markit CDX North American Investment Grade index firmed 2 bps to a spread of 66 bps.

Credit Suisse two-parter

Credit Suisse, New York Branch priced $2.75 billion of notes (A1/A/A) due 2018 in fixed- and floating-rate tranches on Monday, a market source said.

There was a $750 million tranche of floating-rate notes sold at par to yield Libor plus 69 bps.

A second part was $2 billion of 1.75% notes sold at 99.942 to yield 1.77%, or Treasuries plus 90 bps.

Credit Suisse Securities (USA) LLC was the bookrunner.

The investment bank is based in Zurich.

Wells Fargo new issue

Also on Monday, Wells Fargo priced $2.65 billion of five-year senior notes (A2/A+/AA-) in fixed- and floating-rate tranches, according to an informed source.

The company sold $650 million of five-year floaters at par to yield Libor plus 68 bps.

There was also a $2 billion tranche of 2.15% five-year notes sold at 99.864 to yield 2.179%, or Treasuries plus 85 bps.

The notes sold at the tight end of guidance.

Wells Fargo & Co. LLC was the bookrunner.

Proceeds will be used for general corporate purposes.

The bank is based in San Francisco.

Union Pacific prices tight

Union Pacific sold $1.15 billion of senior notes (A3/A/) in three tranches on Monday, according to an informed source and three separate FWP filings with the Securities and Exchange Commission.

There was a $250 million tranche of 1.8% notes due 2020 sold at 99.786 to yield 1.845%, or Treasuries plus 50 bps.

The notes sold at the tight end of talk, which had firmed around 10 bps compared to initial guidance.

The company also priced $450 million of 3.375% 20-year bonds with a spread of Treasuries plus 100 bps.

Pricing was at 99.697 to yield 3.396%.

The notes sold at the tight end of talk, which had firmed around 15 bps from guidance.

Finally, $450 million of 3.875% bonds due 2055 sold at 99.576 to yield 3.896%, or Treasuries plus 150 bps.

Pricing was at the tight end of talk, which tightened roughly 10 bps from initial guidance.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities and Morgan Stanley & Co. LLC were the joint bookrunners.

Proceeds from the offering will be used for general corporate purposes.

The railroad transportation company is based in Omaha.

Synchrony offering

Synchrony Financial sold a $1 billion offering of senior notes (BBB-/BBB-/) due 2020 in fixed- and floating-rate tranches, according to an FWP filing with the SEC.

The company sold a $250 million of floaters at par to yield Libor plus 123 bps.

A $750 million tranche of 2.7% notes sold at 99.791 to yield 2.745%, or Treasuries plus 140 bps.

J.P. Morgan Securities LLC, Barclays, Credit Suisse Securities and Mizuho Securities were the bookrunners.

Proceeds will be used to prepay outstanding amounts under the company’s General Electric Capital Corp. term loan facility and/or a bank term loan facility.

Synchrony is a consumer financial services company based in Stamford, Conn.

Penske upsizes

Penske Truck Leasing priced an upsized $900 million of 3.375% seven-year notes (Baa3/BBB-/BBB+) on Monday at Treasuries plus 175 bps, according to an informed source.

The issue was upsized from $500 million and sold at the tight end of talk.

The bookrunners were BofA Merrill Lynch, JPMorgan, Wells Fargo Securities, Mizuho Securities and RBS Securities Inc.

The global transportation services provider is based in Reading, Pa.

TTX sells $350 million

TTX Co. priced a $350 million issue of 3.9% senior notes (Baa1/A+/A) due 2045 with a spread of Treasuries plus 157 bps, according to a market source.

Pricing was at 99.195 to yield 3.946%.

Proceeds will be used for general corporate purposes.

BofA Merrill Lynch, JPMorgan and Wells Fargo Securities were the bookrunners.

The railroad freight company is based in Chicago.

SVB Financial prices

SVB Financial Group sold an upsized $350 million of 3.5% senior notes (A3/BBB/) due 2025 with a spread of 170 bps over Treasuries, according to an informed source and an FWP filed with the SEC.

The notes sold at the tight end of talk, which was set in the 175 bps area over Treasuries.

Pricing was at 99.916 to yield 3.51%.

The deal was upsized from $300 million.

JPMorgan and BofA Merrill Lynch were the bookrunners.

Proceeds will be used for general corporate purposes.

The financial services and bank holding company is based in Santa Clara, Calif.

EBRD add-on

The European Bank for Reconstruction and Development (EBRD) priced a $400 million add-on to its existing 1.75% notes (Aaa/AAA/AAA) due 2019 at mid-swaps flat, according to a market source.

Pricing was at 101.236 to yield 1.483%.

BNP Paribas Securities Corp. was the bookrunner.

The original $1 billion priced at mid-swaps flat on Nov. 19.

The lender to banks, businesses and industries is based in London.

Goldman tightens

Goldman Sachs’ 3.85% notes due 2024 (Baa1/A-/A) were quoted 7 bps tighter at 147 bps bid, a market source said.

Goldman Sachs sold $2.25 billion of the notes on June 30, 2014 at Treasuries plus 135 bps.

The financial services company is based in New York City.

JPMorgan firms

JPMorgan’s 3.625% senior notes due 2024 (A3/A/A+) traded Monday afternoon at 137 bps offered, tighter than where the notes were seen on Friday at 143 bps offered, a source said.

JPMorgan sold $2 billion of the notes on May 6, 2014 at a spread of Treasuries plus 110 bps.

The financial services company is based in New York City.

Bank of America unchanged

Bank of America’s 4% notes due 2024 traded flat at 140 bps offered, according to a market source.

Bank of America sold $2.75 billion of the notes on March 27, 2014 at 137 bps plus Treasuries.

The financial services company is based in Charlotte, N.C.

Morgan Stanley soft

Morgan Stanley’s 3.875% notes due 2024 (Baa2/A-/A-) were unchanged to 1 bps weaker at 147 bps bid in secondary trading, according to a market source.

Morgan Stanley sold $3 billion of the notes on April 23, 2014 at Treasuries plus 130 bps.

The financial services company is based in New York City.

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