TD Bank, PNC, NAB issue bonds; Senior Housing pulls deal; PepsiCo notes tight; CVS firms

By Aleesia Forni and Cristal Cody

Virginia Beach, July 16 – Financial names Toronto-Dominion Bank, PNC Bank NA and National Australia Bank were in Thursday’s primary with multi-tranche bond offerings as European finance ministers approved €7 billion in bridge loans to keep Greece afloat until a bailout is approved.

Also on Thursday, Senior Housing Properties Trust pulled plans for a $300 million 10-year new issue.

Proceeds from the deal, which was slated to price on Thursday, were to be used to repay amounts outstanding under its revolving credit facility and for general business purposes, including funding acquisitions.

In other primary happenings, Toronto-Dominion Bank sold $2 billion of three-year notes in two parts around 10 basis points tight of initial price thoughts.

PNC Bank, meanwhile, sold a $1.5 billion issue of bank notes in tranches due 2018 and 2020, and NAB priced $2.5 billion of bonds.

Penske Truck Leasing Co. LP upsized its five-year offering to $650 million from $500 million.

The investment-grade bond market has been flooded with issuance this week amid broader market volatility, with more than $49.5 billion of paper pricing.

The figure is roughly double what sources had predicted to be around a $25 billion week.

Investment-grade bonds traded mostly better, while credit spreads improved on Thursday.

The Markit CDX North American Investment Grade series 23 index firmed 2 bps to a spread of 65 bps.

PepsiCo Inc.’s senior notes (A1/A/A) were quoted more than 5 bps better in the secondary market.

CVS Health Corp.’s senior notes (Baa1/BBB+) traded 1 bp to 4 bps better.

TD Bank three-years

Toronto-Dominion Bank priced a $2 billion issue of fixed-rate and floating-rate senior medium-term notes (Aa1/AA-/), series A, due July 23, 2018 on Thursday, according to a market source.

Included in the sale was a $1.25 billion 1.75% note priced at 99.901 to yield 1.784%, or Treasuries plus 75 bps.

Pricing was at the tight end of the Treasuries plus 80 bps area guidance, which had tightened from the Treasuries plus 85 bps area.

A $750 million floating-rate note sold at par to yield Libor plus 54 bps.

TD Securities, Goldman Sachs & Co., Citigroup Global Markets Inc. and Wells Fargo Securities LLC are the bookrunners.

The financial services and banking company is based in Toronto.

PNC bank notes

PNC Bank was in Thursday’s market, pricing $1.5 billion of senior bank notes (A2/A/A+) in two parts, a market source said.

The bank’s offering included a $750 million 1.85% notes due 2018 priced at 99.988 to yield 1.854% with a spread of 82 bps over Treasuries.

The notes sold at the tight end of guidance set in the 85 bps area over Treasuries.

Also, $750 million of 2.6% notes due 2020 priced at Treasuries plus 97 bps. The issue sold at 99.93 to yield 2.615%.

Guidance was in the 100 bps area over Treasuries.

Proceeds will be used for general corporate purposes.

Bookrunners were Barclays, Goldman Sachs, J.P. Morgan Securities LLC and PNC Capital Markets LLC.

PNC is a Pittsburgh-based bank and holding company.

Penske upsizes

Thursday also saw Penske Truck Leasing price an upsized $650 million of 3.2% five-year notes (Baa3/BBB-/BBB+) at the tight end of talk with a spread of Treasuries plus 162.5 bps, according to an informed source.

Pricing was at 99.599 to yield 3.288%.

The bookrunners were BofA Merrill Lynch, JPMorgan, Wells Fargo Securities, Fifth Third Securities and SMBC Nikko.

The Reading, Pa.-based global transportation services provider plans to use proceeds to repay debt and for general corporate purposes.

National Australia Bank prices tight

National Australia Bank priced $2.5 billion of senior notes (Aa2/AA-/AA-) in three parts on Thursday, a market source said.

There was $750 million of 1.875% three-year notes priced at Treasuries plus 85 bps, tighter than initial talk in the 95 bps to 100 bps area over Treasuries.

A $750 million tranche of three-year floaters sold with a coupon of Libor plus 64 bps.

The $1 billion of 2.625% five-year notes sold at 100 bps over Treasuries.

Price talk was in the Treasuries plus 110 bps area.

The bookrunners were BofA Merrill Lynch, JPMorgan, HSBC Securities and NAB Securities.

Melbourne-based National Australia Bank is the nation’s largest lender.

Senior Housing pulls deal

Senior Housing Properties Trust pulled a planned $300 million offering of senior notes on Thursday, according to a market source.

Further details were unavailable at press time.

The joint bookrunners were Citigroup Global Markets, RBC Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities.

The real estate investment trust is based in Newton, Mass.

PepsiCo tightens

PepsiCo’s 3.5% notes due 2025 traded better at 107 bps in trading early on Thursday, a source said.

The 10-year notes priced on Tuesday in a $700 million tranche at a spread of Treasuries plus 115 bps.

The company’s 4.6% bonds due 2045 were seen at 134 bps offered earlier in the day.

PepsiCo sold $500 million of the bonds at Treasuries plus 140 bps on Tuesday.

The global food and beverage company is based in Purchase, N.Y.

CVS better

CVS Health’s 3.875% notes due 2025 traded 4 bps tighter from the previous day to 152 bps offered, according to a market source earlier on Thursday.

The company sold $3 billion of the notes on Monday at a spread of Treasuries plus 155 bps.

CVS Health’s 5.125% bonds due 2045 traded about 1 bp better at 183 bps offered.

The company sold $3.5 billion of the bonds in Monday’s sale at Treasuries plus 190 bps.

The pharmacy retailer is based in Scarsdale, N.Y.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.