PNC Bank, CBL & Associates price bonds; credit spreads tighten; Ford Motor slightly better

By Cristal Cody

Eureka Springs, Ark., Dec. 6 – High-grade primary action included two new bond deals on Tuesday following Monday’s heavy deal pipeline.

PNC Bank NA came with a $1.75 billion three-part offering of notes.

CBL & Associates LP priced $400 million of 10-year senior notes on Tuesday.

The Markit CDX North American Investment Grade index tightened 2 basis points over the day to end at a spread of 70 bps.

Ford Motor Co.’s $2.8 billion of senior notes (Baa2//BBB) priced in two parts on Monday were quoted earlier in the secondary market about 1 bp to 2 bps tighter.

PNC sells $1.75 billion

PNC Bank sold $1.75 billion of notes (Aa2/A/A+) in three tranches on Tuesday, according to a market source.

The company priced $400 million of two-year floating-rate notes at Libor plus 40 bps.

PNC Bank sold $600 million of 1.7% two-year fixed-rate notes at a spread of 63 bps plus Treasuries.

The bank also priced $750 million of 2.55% five-year fixed-rate notes with a 75 bps spread over Treasuries.

Barclays, Goldman Sachs & Co., Morgan Stanley & Co. LLC and PNC Capital Markets LLC were the lead managers.

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

CBL prices notes

CBL & Associates priced $400 million of 5.95% 10-year senior notes on Tuesday with a spread of 375 bps over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes due Dec. 15, 2026 (Baa3/BBB-/BBB-) priced at 98.565 to yield 6.144%.

Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Jefferies & Co., U.S. Bancorp Investments Inc., BofA Merrill Lynch and Stifel, Nicolaus & Co., Inc. were the bookrunners.

The notes have a limited guarantee by CBL & Associates Properties, Inc.

Proceeds will be used to reduce debt under the company’s unsecured revolving credit facilities and for general business purposes.

CBL is a Chattanooga, Tenn.-based owner and developer of malls and shopping centers.

Ford Motor improves

Ford Motor’s 4.346% notes due 2026 traded at 193 bps offered in secondary trading, according to a market source earlier on Tuesday.

The company sold $1.5 billion of the 10-year notes on Monday at par to yield a spread of 195 bps over Treasuries.

Ford Motor’s tranche of 5.291% notes due 2046 traded modestly better at 219 bps offered in the secondary market.

The $1.3 billion 30-year tranche was priced on Monday at par with a spread of 220 bps plus Treasuries.

The automaker is based in Dearborn, Mich.

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