Morgan Stanley, JPMorgan, Novartis, Boeing tap primary market; Goldman paper mixed

By Cristal Cody

Tupelo, Miss., Feb. 14 – Issuance stayed strong over Tuesday’s session with bank and financial supply making up the bulk of volume in the high-grade bond market.

Morgan Stanley sold $3 billion of three-year floating-rate senior notes.

JPMorgan Chase & Co. came with $2 billion of 31-year fixed- to floating-rate notes.

Japan Bank for International Cooperation brought $2 billion of three-year fixed- and floating-rate guaranteed bonds in two parts.

PNC Bank NA sold $1 billion of five-year notes.

Also on Tuesday, Novartis Capital Corp. placed a $3 billion three-part offering of notes.

Boeing Co. priced a $900 million three-tranche offering of senior notes.

The Markit CDX North American Investment Grade index ended mostly unchanged at a spread of 63 basis points.

In the secondary market, Goldman Sachs Group Inc.’s notes (A3/A/) reopened on Monday were mixed.

Morgan Stanley sells floaters

Morgan Stanley sold $3 billion of three-year floating-rate senior notes at par to yield Libor plus 80 bps on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The series I global medium-term notes (A3/BBB+/A) are due Feb. 14, 2020.

Morgan Stanley & Co. LLC was the bookrunner.

Morgan Stanley is a New York-based financial products and services company.

JPMorgan prices $2 billion

JPMorgan Chase priced $2 billion of 4.26% fixed- to floating-rate notes due Feb. 22, 2048 with a spread of 120 bps over Treasuries on Tuesday, according to a market source.

The notes (A3/A-/A+) priced on the tight side of guidance of Treasuries plus 120 bps to 123 bps.

J.P. Morgan Securities LLC was the bookrunner.

Proceeds will be used for general corporate purposes, according to a 424B2 filed with the Securities and Exchange Commission.

The financial services company is based in New York City.

Japan Bank sells two tranches

Japan Bank for International Cooperation priced $2 billion of three-year fixed- and floating-rate guaranteed bonds (A1/A+/) in two parts on Tuesday, according to an FWP filed with the SEC.

The $500 million tranche of floaters due Feb. 24, 2020 priced at par to yield Libor plus 57 bps.

Japan Bank sold $1.5 billion of 2.25% three-year bonds at 99.726 to yield 2.345% and a spread of 80.7 bps over Treasuries.

Barclays, Citigroup Global Markets Inc., Daiwa Capital Markets Europe Ltd. and J.P. Morgan Securities plc were the bookrunners.

The notes are guaranteed by Japan.

PNC Bank prices $1 billion

PNC Bank sold $1 billion of 2.625% five-year notes at a spread of 68 bps over Treasuries on Tuesday, according to a market source.

The notes due Feb. 17, 2022 (A2/A/A+) priced on the tight side of talk in the Treasuries plus 70 bps area, plus or minus 2 bps.

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

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

Novartis brings $3 billion

Novartis Capital brought $3 billion of notes (Aa3/AA-/) in three tranches to the primary market on Tuesday, according to an FWP filing with the SEC.

The company sold $1 billion of 1.8% three-year notes at 99.609 to yield 1.935%. The notes priced with a spread of 40 bps over Treasuries.

Novartis priced $1 billion of 2.4% notes due May 17, 2022 at 99.449 to yield 2.513%, or a spread of 55 bps over Treasuries.

The $1 billion tranche of 3.1% 10-year notes priced at 99.109 to yield 3.203%. The notes priced with a Treasuries plus 73 bps spread.

Citigroup Global Markets, J.P. Morgan Securities, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co. and UBS Securities LLC were the bookrunners.

The notes are guaranteed by Novartis AG.

Proceeds will be used for general corporate purposes, including debt refinancing and stock repurchases.

The holding company for pharmaceuticals and health care subsidiaries is based in New York.

Boeing places three tranches

Boeing priced $900 million of senior notes (A2/A/A) in three parts on Tuesday, according to an FWP filed with the SEC.

Boeing sold $300 million of 2.125% five-year notes at 98.79 to yield 2.381% and a spread of Treasuries plus 42 bps.

The company priced $300 million of 2.8% 10-year notes at 97.698 to yield 3.068%. The notes priced with a Treasuries plus 60 bps spread.

Boeing sold $300 million of 3.65% 30-year notes at 95.392 to yield 3.912%, or Treasuries plus 85 bps.

Citigroup Global Markets, Deutsche Bank Securities Inc., SMBC Nikko Securities America, Inc., Credit Agricole Securities (USA) Inc., Santander Investment Securities Inc. and U.S. Bancorp Investments Inc. were the bookrunners for the 2022 notes.

Citigroup, Goldman, Sachs, Mizuho Securities USA Inc., BNP Paribas Securities Corp., BofA Merrill Lynch and RBC Capital Markets, LLC were the bookrunners for the 2027 notes.

Citigroup, J.P. Morgan Securities, Wells Fargo Securities, LLC, Barclays, Morgan Stanley and MUFG were the bookrunners for the 2047 notes.

Proceeds from the deal will be used for general corporate purposes.

Boeing is a Chicago-based aerospace company.

Goldman mixed

Goldman Sachs’ 3% notes due April 26, 2022 closed lower at 99.50 on Tuesday from where the paper ended on Monday at 99.69, a market source said.

Godman Sachs priced $1 billion of the five-year notes in a reopening on Monday at 99.711 to yield 3.061% and a spread of 115 bps over Treasuries.

The tranche originally priced in a $2.25 billion offering on Jan. 23 at 99.68 to yield 3.067%, or 120 bps over Treasuries.

Goldman Sachs’ 3.85% notes due Jan. 26, 2027 traded better at 100.21 from where the notes traded on Monday at 100.18.

The company sold $1.25 billion of the 10-year notes in a reopening on Monday at 100.146 to yield 3.832% and a spread of Treasuries plus 140 bps.

Goldman Sachs originally sold $1.75 billion of the 10-year notes on Jan. 23 at 99.72 to yield 3.884%, or Treasuries plus 148 bps.

The banking, securities and investment management company is based in New York.

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