Export Development Canada prices; bank supply on way; CSX, Toyota, Deutsche Bank, Phillips firm

By Cristal Cody

Eureka Springs, Ark., Oct. 14 – Export Development Canada ended the week’s high-grade primary action with a $1 billion offering of five-year bonds on Friday.

Looking to the week ahead, market sources expect about $25 billion of investment-grade supply with bank and financial volume forecast.

In the secondary market, new corporate bonds traded flat to tighter on Friday, while bank and financial paper traded mostly unchanged to modestly tighter, sources said.

CSX Corp.’s notes (Baa1/BBB+/) priced on Thursday were seen flat to 2 basis points better in secondary trading.

Toyota Motor Credit Corp.’s $2 billion of series B medium-term notes (Aa3/AA-/) priced in three tranches in the previous session traded about 1 bp to 3 bps tighter.

Deutsche Bank AG’s new 4.25% notes due 2021 remained about 14 bps tighter than issuance in the secondary market on Friday. The bank’s existing 4.1% notes due 2026 tightened about 5 bps to 252 bps bid on Friday.

Phillips 66 Partners LP’s senior notes (Baa3/BBB/) sold on Tuesday traded about 7 bps to 10 bps tighter.

The Markit CDX North American Investment Grade index closed the day mostly unchanged at a spread of 76 bps.

EDC prices $1 billion

Export Development Canada (Aaa/AAA) priced $1 billion of 1.375% five-year bonds at 99.534 to yield 1.472% on Friday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The bonds (Aaa/AAA/) priced with a spread of Treasuries plus 20.15 bps.

Barclays, Credit Agricole CIB, HSBC Bank plc, TD Securities (USA) LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

Ottawa-based Export Development Canada is a Canadian government-owned export credit agency.

CSX improves

The 2.6% notes due 2026 that CSX priced on Thursday traded at 90 bps bid, 88 bps offered on Friday, a source said.

The company sold $700 million of the notes at a spread of Treasuries plus 90 bps.

CSX’s 3.8% notes due 2046 were seen Friday afternoon at 135 bps bid, 133 bps offered.

The company sold $800 million of the 30-year notes on Thursday at a 135 bps spread over Treasuries.

The transportation company is based in Jacksonville, Fla.

Toyota Motor Credit firms

Toyota Motor Credit’s 2.25% notes due 2023 firmed to 72 bps bid, 69 bps offered in the secondary market, a source said.

The $500 million tranche of seven-year notes priced on Thursday at a spread of 75 bps over Treasuries.

Toyota Motor Credit is a financing arm and subsidiary of Toyota Motor Corp.

Deutsche Bank strong

Deutsche Bank’s 4.25% notes due 2021 traded on Friday at 276 bps bid, 272 bps offered, a market source said.

The bank priced a $1.5 billion add-on to the notes on Tuesday at a spread of Treasuries plus 290 bps. The notes were first offered in a $3 billion tranche on Oct. 7 at a spread of Treasuries plus 300 bps.

Deutsche Bank is a banking and financial services company based in Frankfurt.

Phillips 66 improves

Phillips 66 Partners’ 3.55% notes due 2026 traded at 173 bps bid, 170 bps offered during the session, according to a market source.

The company sold $500 million of the 10-year notes on Tuesday at a spread of 180 bps over Treasuries.

The tranche of 4.9% notes due 2046 were quoted better at 234 bps bid, 231 bps offered in secondary trading.

Phillips 66 sold $625 million of the 30-year notes in Tuesday’s offering at a 245 bps spread over Treasuries.

The oil, petroleum and natural gas company is based in Houston.

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