TD Bank, U.S. Bank price; Quebec’s Federation continues roadshow; credit spreads flat

By Cristal Cody

Tupelo, Miss., Oct. 19 – Investment-grade primary action slowed on Thursday with two high-grade deals reported priced.

Toronto-Dominion Bank came with a $2 billion dollar-denominated offering of two-year fixed- and floating-rate notes.

U.S. Bank NA priced $1.5 billion of three-year fixed- and floating-rate senior notes.

Market focus has been geared toward a heavy round of earnings reports from companies including Verizon Communications Inc. and Phillip Morris International Inc. on Thursday, followed by earnings releases on Friday from companies that include General Electric Co. and Procter & Gamble Co.

In other activity, the Federation des caisses Desjardins du Quebec (Aa2/A+/AA-) is expected to wrap its three-day deal roadshow in Boston on Friday, according to a market source. Barclays is the bookrunner for the dollar-denominated Rule 144A and Regulation S offering.

The Markit CDX North American Investment Grade 29 index closed steady at a spread of 54 basis points.

TD Bank sells $2 billion

Toronto-Dominion Bank priced $2 billion of two-year series A senior medium-term notes (Aa2/AA-/) in two tranches on Thursday, according to FWP filings with the Securities and Exchange Commission.

The company sold $300 million of floating-rate notes at par to yield Libor plus 15 bps.

TD Bank priced $1.7 billion of 1.9% two-year fixed-rate notes at 99.90 to yield 1.951%, or a spread of Treasuries plus 40 bps.

TD Securities (USA) LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and UBS Securities LLC were the bookrunners.

The bank and financial services company is based in Toronto.

U.S. Bank prices $1.5 billion

U.S. Bank priced $1.5 billion of three-year fixed- and floating-rate senior notes (A1/AA-/AA-) on Thursday, according to a market source.

The company sold $300 million of three-year floaters at Libor plus 14 bps.

U.S. Bank placed $1.2 billion of 2.05% three-year fixed-rate notes at a spread of Treasuries plus 37 bps.

Goldman Sachs & Co., Morgan Stanley & Co. LLC and USB were the bookrunners.

The commercial bank is based in Cincinnati.

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