Citi, PNC, Crown Castle price; Exxon Mobil stable; Procter & Gamble better; CDX flat

By Cristal Cody

Eureka Springs, Ark., April 26 – Investment-grade companies saw a window on Tuesday ahead of the Federal Reserve’s meeting wrap and brought more than $5 billion of bond issuance.

Citigroup Inc. was in the primary market with $2 billion of 10-year notes.

PNC Bank NA sold $1.85 billion of bank notes in two tranches during the session, including a tap of its 3.25% notes due June 1, 2025.

Crown Castle International Corp. priced $1 billion of senior notes in two parts over the day.

Suncorp-Metway Ltd. sold $500 million of three-year notes on Tuesday.

In the secondary market, Exxon Mobil Corp.’s 3.043% notes due 2026 headed out mostly unchanged following the company’s downgrade by Standard & Poor’s. S&P dropped the company to AA+ from AAA related to continued pressure on oil prices.

Procter & Gamble Co.’s 2.7% notes due 2026 have tightened more than 10 basis points over the last two trading sessions. The company on Tuesday reported a nearly 30% growth in third quarter profit, while revenue fell about 13% from a year ago.

The Markit CDX North American Investment Grade Series 23 index improved about 1 bp early Tuesday but pulled back to close mostly unchanged at a spread of 75 bps.

Citigroup prices $2 billion

Citigroup sold $2 billion of 3.4% 10-year notes (Baa1/BBB+/A) in line with guidance at a spread of Treasuries plus 150 bps on Tuesday, according to a market source.

The notes are due May 1, 2026.

Citigroup Global Markets Inc. was the bookrunner.

Citigroup is a New York-based financial services company.

PNC Bank prices $1.85 billion

PNC Bank sold $1.85 billion of notes (A2/A/A+) in two tranches, including a reopening, on Tuesday, according to a market source.

The company priced $1.25 billion of 2.15% notes due April 29, 2021 at a spread of Treasuries plus 77 bps, on the tight side of guidance of 80 bps, plus or minus 3 bps.

PNC Bank tapped its 3.25% notes due June 1, 2025 in a $600 million tranche that priced at Treasuries plus 97 bps. The notes were guided at Treasuries plus 100 bps, plus or minus 3 bps.

The company originally sold $400 million of the notes on May 27, 2015 at Treasuries plus 115 bps. The total outstanding is $1 billion.

Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC and Morgan Stanley & Co. LLC were the lead managers.

PNC Bank is based in Pittsburgh.

Crown Castle prices $1 billion

Crown Castle International sold $1 billion of senior notes (Baa3/BBB-) in two parts on Tuesday, according to a company release and a market source.

The company priced $250 million of 3.4% five-year notes at 102.637 to yield 2.796%. The notes due Feb. 15, 2021 priced with a spread of 140 bps over Treasuries, on the tight side of guidance of 145 bps, plus or minus 5 bps.

In the second tranche, Crown Castle sold $750 million of 3.7% 10-year notes at 99.695 to yield 3.736%. The notes due June 15, 2026 priced at 180 bps over Treasuries, compared to guidance of 185 bps, plus or minus 5 bps.

Barclays, Credit Agricole CIB, Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey and TD Securities (USA) LLC were the bookrunning managers for the offering.

Crown Castle intends to use the proceeds to repay in full the series 2010-2 class C-2017 and series 2010-5 class C-2017 senior secured tower revenue notes and to repay a portion of outstanding debt under its senior revolving credit facility.

Houston-based Crown Castle provides infrastructures for wireless carriers.

Suncorp-Metway brings $500 million

Suncorp-Metway placed $500 million of 2.1% notes due May 3, 2019 at a spread of Treasuries plus 110 bps on Tuesday, a market source said.

The notes due May 3, 2019 (A1/A+/A+) priced on the tight side of guidance of 115 bps, plus or minus 5 bps.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC and UBS Securities LLC were the lead managers.

Suncorp-Metway is a subsidiary of Suncorp Group Ltd., a Brisbane, Australia-based finance, insurance and banking company.

Exxon Mobil stable

Exxon Mobil’s 3.043% notes due 2026 headed out mostly unchanged in secondary trading at 77 bps bid, a market source said.

The company sold $2.5 billion of the notes (Aaa/AA+) on Feb. 29 at 130 bps over Treasuries.

Exxon Mobil is an energy company based in Irving, Texas.

Procter & Gamble improves

Procter & Gamble’s 2.7% notes due 2026 traded stronger at 44 bps bid on Tuesday, a market source said.

The notes (Aa3/AA-) were last seen headed out on Friday at 57 bps bid.

The company sold $600 million of the bonds on Jan. 28 at 75 bps plus Treasuries.

The consumer products company is based in Cincinnati.

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