Citi, PNC, Nordic Bank, Kimberly-Clark in primary; financial paper firms; 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 (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 and $1.75 billion of 2.35% notes with a spread of 123 bps over Treasuries, tighter than initial guidance in the Treasuries plus 135 bps area.

Citigroup Global Markets Inc. was the bookrunner.

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.

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