Fannie Mae, Pfizer sell notes; Bristol-Myers steady; Mizuho, Parker-Hannifin tighten

By Cristal Cody

Tupelo, Miss., Feb. 24 – Friday’s session saw a handful of high-grade bonds price.

Fannie Mae brought a $3 billion offering of three-year notes to market.

Pfizer Inc. sold $1,065,000,000 of 30-year notes.

Also, the Province of Quebec priced a C$500 million SEC-registered offering of five-year green bonds.

Including Friday’s volume, more than $15 billion of investment-grade bonds priced over the short market week, coming in on the low end of expectations of about $25 billion of supply.

About $20 billion to $25 billion of new issuance is expected in the week ahead, a source said.

The Markit CDX North American Investment Grade index closed the day modestly softer at a spread of 63 basis points.

In the secondary market, Pfizer’s existing bonds traded about 2 bps to 4 bps better on the day.

Bristol-Myers Squibb Co.’s $1.5 billion of senior notes (A2/A+/) priced in two tranches on Wednesday traded about 1 bp better than issuance on the bid side.

Mizuho Financial Group, Inc.’s $3.25 billion three-part offering of senior fixed- and floating-rate notes (A1/A-/) sold on Wednesday traded about 1.5 bps to 3 bps tighter in the secondary market.

Parker-Hannifin Corp.’s $1.3 billion of senior notes (Baa1/A/A-) priced in two tranches on Tuesday tightened 3 bps in the secondary market.

Fannie Mae prices $3 billion

Fannie Mae priced a $3 billion offering of 1.5% three-year benchmark notes at a spread of 12 bps over Treasuries on Friday, according to a news release.

The notes due Feb. 28, 2020 priced at 99.936 to yield 1.522%.

Barclays, Goldman Sachs & Co. and J.P. Morgan Securities LLC were the lead managers.

Fannie Mae is a mortgage credit provider based in Washington, D.C.

Pfizer raises $1.06 billion

Pfizer priced $1,065,000,000 of 4.2% 30-year notes (A1/AA/) at par on Friday, according to an FWP filing with the Securities and Exchange Commission.

BNP Paribas, Taipei Branch, and Deutsche Bank AG, Taipei Branch, were the bookrunners.

The company will apply to list the notes on the Taipei Exchange.

Proceeds will be used for general corporate purposes, including to repay a portion of outstanding commercial paper. As of Feb. 22, Pfizer had about $6.6 billion of outstanding commercial paper.

Pfizer better

Pfizer’s existing 3.4% senior notes due 2024 firmed 4 bps to 43 bps bid on Friday, 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.

Bristol-Myers modestly firms

Bristol-Myers Squibb’s 1.6% notes due Feb. 27, 2019 traded at 42 bps bid, 39 bps offered on Friday, according to a market source.

The company sold $750 million of the two-year notes on Wednesday at a spread of 43 bps over Treasuries.

Bristol-Myers’ 3.25% notes due Feb. 27, 2027 were quoted at 89 bps bid, 87 bps offered in the secondary market.

The 10-year notes priced in a $750 million tranche on Wednesday at a spread of Treasuries plus 90 bps.

Bristol-Myers Squibb is a New York City-based biopharmaceutical company.

Mizuho tightens

Mizuho Financial Group’s 2.953% notes due Feb. 28, 2022 were seen at 103.5 bps in secondary trading, a source said on Friday.

The $1.5 billion tranche of five-year notes priced on Wednesday at a spread of 105 bps over Treasuries.

The company’s $500 million tranche of 3.663% notes due Feb. 28, 2027, priced with a Treasuries plus 125 bps spread, firmed to 122 bps bid, 120 bps offered.

Mizuho Financial Group is a Japanese bank holding company based in Tokyo.

Parker-Hannifin improves

Parker-Hannifin’s 3.25% notes due March 1, 2027 tightened to 80 bps bid, 78 bps offered, according to a market source.

The $700 million tranche of 3.25% 10-year notes priced on Tuesday at a spread of 83 bps over Treasuries.

Parker-Hannifin’s 4.1% notes due March 1, 2047 tightened to 105 bps bid, 102 bps offered in the secondary market.

The company sold $600 million of the 30-year notes on Tuesday at a Treasuries plus 108 bps spread.

Proceeds from the transactions will be used to finance a portion of the company’s acquisition of Clarcor, Inc. The notes are subject to a special mandatory redemption at 101 if the deal is not completed on or before Dec. 1, 2017.

Parker-Hannifin is a Cleveland-based manufacturer of motion and control technologies.

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