Standard Chartered prices tight; JPMorgan firms; Citi eases; Thermo tightens; Pfizer improves

By Aleesia Forni and Cristal Cody

New York, April 7 – Standard Chartered plc’s new bonds saw tight pricing during a subdued primary session, while stocks slid during a risk-off session for the market.

Standard Chartered managed to nab a book that was more than 2.5 times oversubscribed for its $1.25 billion 10-year offering.

The deal priced at a 240 basis point spread over Treasuries, inside initial price thoughts in the Treasuries plus 250 bps to 262.5 bps range.

More than $39 billion of new issuance has priced this week, with large financial trades making up the bulk of issuance.

This figure has surpassed what was predicted to be around a $30 billion week.

Investment-grade bonds were mixed in secondary trading on Thursday.

JPMorgan Chase & Co.’s 3.3% senior notes due 2026 firmed 4 bps over the session.

Citigroup Inc.’s paper traded about 1 bp to 2 bps weaker.

Thermo Fisher Scientific Inc.’s 3% senior notes due 2023 traded 3 bps better at the market close.

HSBC Holdings plc’s 4.3% senior notes due 2026 were flat on the day.

Pfizer Inc.’s 3.4% senior notes due 2024 recovered 1 bp after easing 5 bps on Wednesday following the company’s announcement its deal to acquire Dublin-based Allergan plc was off due to new federal tax inversion rules.

The Markit CDX North American Investment Grade index closed 4 bps wider at a spread of 82 bps on Thursday.

Standard Chartered 10-years

Standard Chartered priced $1.25 billion of senior notes (A1/BBB+/A+) on Thursday at a spread of Treasuries plus 240 bps, a market source said.

The notes sold on top of guidance and inside initial talk set in the 250 bps to 262.5 bps over Treasuries range.

Pricing was at 99.723 to yield 4.084%.

The bookrunners were BNP Paribas Securities Corp., Goldman Sachs & Co., J.P. Morgan Securities LLC and Standard Chartered.

The bank and financial services company is based in London.

JPMorgan tightens

In secondary trading, JPMorgan’s 3.3% notes due 2026 improved 4 bps during the session to 143 bps bid, according to a market source.

JPMorgan sold $2.5 billion of the notes (A3/A-) on March 18 at a spread of 145 bps over Treasuries.

The financial services company is based in New York City.

Citigroup softens

Citigroup’s 4.6% subordinated notes due 2026 eased 2 bps to 255 bps bid on Thursday, a market source said.

Citigroup sold $1.5 billion of the notes (Baa3/BBB/A-) on March 1 at a spread of Treasuries plus 280 bps.

The banking and financial services company is based in New York.

Thermo Fisher firms

Thermo Fisher Scientific’s 3% notes due 2023 (Baa3/BBB/BBB) firmed 3 bps over the day to head out at 128 bps bid, a market source said.

Thermo Fisher Scientific sold $1 billion of the notes on Monday at 155 bps over Treasuries.

The technology company is based in Waltham, Mass.

HSBC unchanged

HSBC Holdings’ 4.3% notes due 2026 were unchanged in secondary trading over the session, going out at 216 bps offered, a source said.

HSBC sold $3 billion of the notes (A1/A/AA-) on March 1 at a spread of 250 bps plus Treasuries.

The banking and financial services group is based in London.

Pfizer improves

Pfizer’s 3.4% notes due 2024 recovered 1 bp to 65 bps bid during the day after widening 5 bps in the previous session, according to a market source.

Pfizer sold $1 billion of the notes (A1/AA/) on May 13, 2014 at Treasuries plus 80 bps.

The biopharmaceutical company is based in New York City.

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