Citi, Diageo, RBS, Toyota, Avista, Svensk price; pipeline fills; Kommuninvest on tap

By Cristal Cody

Tupelo, Miss., May 15 – High-grade volume on Tuesday included deals from Citigroup Inc., Diageo Capital plc, Royal Bank of Scotland Group plc, Toyota Motor Credit Corp., Avista Corp. and Swedish Export Credit Corp.

Citigroup priced $2.6 billion of new and reopened notes.

Diageo Capital sold $2 billion of notes in four tranches.

Royal Bank of Scotland Group brought $1.75 billion of fixed-to-floating-rate senior notes to the primary market.

Toyota Motor Credit sold $400 million of four-year floating-rate medium-term notes.

Avista placed $375 million of 30-year first mortgage bonds.

Also, Swedish Export Credit priced $1 billion of three-year global medium-term notes.

In other deal activity, Petrofac Ltd. planned to price $300 million of five-year notes.

Coming up on Wednesday, Kommuninvest I Sverige AB intends to price a benchmark-sized issuance of notes due March 1, 2021 that were initially talked to price in the mid-swaps plus 8 basis points area.

Also on Wednesday, Vodafone Group plc will start a roadshow for a dollar-denominated multiple-tranche offering of notes.

In other market activity on Tuesday, Air Lease Corp. began a round of fixed-income investor calls for an offering of subordinated notes.

Eni SpA also continued its roadshow for a Rule 144A and Regulation S dollar-denominated senior note offering on Tuesday.

About $30 billion to $35 billion of supply is forecast by market sources for the week.

High-grade volume on Monday included more than $17 billion of bonds.

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

Citigroup prices $2.6 billion

Citigroup (Baa1/BBB+/A) priced $2.6 billion of notes in three tranches on Tuesday, according to a market source.

Citigroup sold $1 billion of six-year floating-rate notes at Libor plus 102.3 bps.

The $1.25 billion of 4.044% six-year fixed-to-floating-rate notes priced at a spread of Treasuries plus 112.5 bps. The notes will have a floating rate of Libor plus 102.3 bps after the initial fixed-rate period.

Citigroup also priced a $350 million tap of its 4.45% notes due Sept. 29, 2027 at a Treasuries plus 163 bps spread.

The total outstanding now is $3.85 billion, which includes $1.5 billion of notes priced Oct. 23, 2015 at 100.299 to yield 4.417%, or a spread of Treasuries plus 233 bps. Citigroup first priced $2 billion of the notes on Sept. 23, 2015 at 99.54 to yield 4.50% and a 235 bps over Treasuries spread.

Citigroup Global Markets Inc. was the bookrunner.

Citigroup is a financial services company based in New York.

Diageo sells four tranches

Diageo Capital riced $2 billion of notes (A3/A-/A-) in four tranches on Tuesday, according to a market source.

The company sold $500 million of two-year floating-rate notes at Libor plus 24 bps.

Diageo priced $500 million of 3% two-year fixed-rate note with a spread of 45 bps over Treasuries.

The $500 million tranche of 3.50% five-year notes were sold with a Treasuries plus 63 bps spread.

Finally, the company sold $500 million of 3.875% 10-year notes at an 85 bps over Treasuries spread.

Barclays, BofA Merrill Lynch, Goldman Sachs & Co., Santander Investment Securities Inc., Standard Chartered Bank and UBS Securities LLC were the bookrunners.

The notes are guaranteed by Diageo plc.

The premium drink company is based in London.

RBS prices

Royal Bank of Scotland Group priced $1.75 billion of 4.892% fixed-to-floating-rate senior notes due May 18, 2029 on Tuesday at par to yield a spread of Treasuries plus 182 bps, according to an FWP filing with the Securities and Exchange Commission.

The notes (Baa3/BBB-/BBB+) will reset May 18, 2028 to a floating rate of Libor plus 175.4 bps.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, NatWest Markets Securities Inc. and UBS Securities were the bookrunners.

Royal Bank of Scotland Group is a banking and financial services company based in Edinburgh.

Toyota brings floaters

Toyota Motor Credit sold $400 million of four-year floating-rate medium-term notes, series B, (Aa3/AA-) on Tuesday, according to an FWP filed with the SEC.

The notes priced at Libor plus 40 bps and were sold at par.

Deutsche Bank Securities Inc. and SG Americas Securities, LLC were the bookrunners.

The Torrance, Calif.-based company is the funding arm of auto manufacturer Toyota.

Avista sells mortgage bonds

Avista priced $375 million of 4.35% 30-year first mortgage bonds on Tuesday at 99.899 to yield 4.356%, or a spread of 115 bps over Treasuries, according to a market source and an FWP filing with the SEC.

The bonds (A2/A-/) were initially talked to price with a spread in the Treasuries plus 125 bps area.

BNY Mellon Capital Markets, LLC, J.P. Morgan Securities, MUFG and Wells Fargo Securities LLC were the bookrunners.

Avista is a Spokane, Wash.-based energy company.

Swedish Export Credit prices

Swedish Export Credit (Aa1/AA+/) priced $1 billion of 2.875% three-year global medium-term notes on Tuesday at 99.701 to yield 2.98%, according to a market source and an FWP filing with the SEC.

The notes due May 22, 2021 priced at a spread of mid-swaps plus 9 bps, or Treasuries plus 24.8 bps. Price talk on the notes tightened to the mid-swaps plus 10 bps area from initial guidance in the mid-swaps plus 12 bps area.

Bank of Montreal, London Branch, Goldman Sachs International, J.P. Morgan Securities plc and Morgan Stanley & Co. International plc were the lead managers.

Swedish Export Credit is a Stockholm-based financial services company for the Swedish export industry.

Petrofac offers $300 million

Petrofac (Ba1/BBB-/BBB-) was expected to price $300 million of five-year notes on Tuesday in a Rule 144A and Regulation S transaction, a market source said.

The notes were initially talked in the 6% area with a spread in the Treasuries plus 300 bps area.

J.P. Morgan Securities and MUFG are the arrangers.

Petrofac is an oilfield services provider with its main corporate office in London.

Air Lease holds investor calls

Air Lease (/BBB/BBB) plans to hold fixed-income investor calls starting Tuesday for an offering of subordinated notes, according to a market source.

BofA Merrill Lynch and Goldman Sachs are the arrangers.

The aircraft leasing company is based in Los Angeles.

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