Citi, PNC, Nordic Bank, Kimberly-Clark in primary; financial paper firms; credit spreads ease

By Cristal Cody

Eureka Springs, Ark., July 26 – Bank and financial primary action continued over Tuesday’s session with new high-grade bonds priced by Citigroup, Inc., PNC Bank NA and Nordic Investment Bank.

Citigroup priced $2.5 billion of five-year notes in fixed- and floating-rate tranches.

PNC Bank raised $1 billion in an offering of three-year notes.

Nordic Investment Bank sold $1 billion of five-year global notes on Tuesday.

Also, Kimberly-Clark Corp. tapped the primary market with a $500 million sale of 30-year senior notes.

The Markit CDX North American Investment Grade index ended the day 1 basis point weaker at a spread of 74 bps.

New investment-grade bank and financial paper has traded mostly better in the secondary market.

Morgan Stanley’s 3.125% global medium-term notes due 2026, which priced on Wednesday, were quoted more than 10 bps tighter than issuance earlier in Tuesday trading.

U.S. Bancorp’s 2.375% medium-term senior notes due 2026 sold a week ago traded 4 bps better than where the paper priced.

Nordic Investment Bank prices

Nordic Investment Bank priced $1 billion of 1.25% five-year global notes at 99.499 with a spread of 20.48 bps over Treasuries on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

Citigroup Global Markets Inc., HSBC Bank plc, Merrill Lynch International and RBC Capital Markets, LLC were the lead managers.

Nordic Investment Bank is an international financial institution owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden.

Citi sells $2.5 billion

Citigroup priced $2.5 billion of five-year notes (Baa1/BBB+/A) in two tranches on Tuesday, according to a market source.

The company sold $750 million of floating-rate notes at Libor plus 119 bps.

A $1.75 billion tranche of 2.35% notes due Aug. 2, 2021 priced with a spread of 123 bps over Treasuries, tighter than initial guidance in the Treasuries plus 135 bps area.

Citigroup Global Markets was the bookrunner.

Citigroup is a financial services company based in New York.

PNC brings $1 billion

PNC Bank sold $1 billion of 1.45% three-year notes during the session at a spread of 62.5 bps over Treasuries, according to a market source.

The notes (A2/A/A+) priced on the tight side of talk in the 65 bps area over Treasuries and from initial guidance in the low 70 bps area.

Citigroup, Barclays, J.P. Morgan Securities LLC and PNC Capital Markets LLC were the lead managers.

Pittsburgh-based PNC Bank is a subsidiary of PNC Financial Services Group, Inc.

Kimberly-Clark sells notes

Kimberly-Clark sold $500 million of 3.2% 30-year senior notes on Tuesday at 99.77 to yield 3.212%, according to a market source and an FWP filing with the SEC.

The notes (A2/A/A) priced at a spread of 93 bps over Treasuries, on the tight side of talk in the Treasuries plus 95 bps area and in from initial guidance in the 110 bps area.

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

Proceeds will be used for general corporate purposes.

The consumer paper products company is based in Irving, Texas.

Morgan Stanley firms

Morgan Stanley’s 3.125% notes due 2026 (A3/BBB+/A) traded 2 bps tighter earlier in the day at 151 bps offered, according to a market source.

Morgan Stanley sold $3 billion of the notes on July 20 at a spread of 163 bps over Treasuries.

The financial services company is based in New York City.

U.S. Bancorp improves

U.S. Bancorp’s 2.375% notes due 2026 were quoted about 2 bps tighter at 86 bps offered in secondary trading early on Tuesday, a source said.

U.S. Bancorp sold $1.35 billion of the notes on July 19 at a spread of 90 bps plus Treasuries.

The financial services holding company is based in Minneapolis.

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