High-grade supply strong; Citi, Westpac, Deutsche, PNC, TPG, Kommuninvest, EDC, Dexia price

By Cristal Cody

Tupelo, Miss., Jan. 17 – Bank and financial supply dominated the high-grade primary market on Wednesday with new paper priced during the session from Citigroup Inc., Westpac Banking Corp., Deutsche Bank AG, New York Branch and PNC Bank, NA.

Wells Fargo Bank NA, JPMorgan Chase & Co. and ANZ New Zealand International Ltd. priced notes on Tuesday.

Also on Wednesday, middle-market lender TPG Specialty Lending Inc. priced $150 million of five-year notes.

In SSA issuance, Dexia Credit Local SA, Export Development Canada and Kommuninvest I Sverige AB tapped the investment-grade primary market on Wednesday.

In other corporate deal activity during the session, Hercules Capital, Inc. was scheduled to conclude a second day of fixed income investor calls. The company is expected to tap the primary market with a reopening of its 4.625% notes due Oct. 23, 2022 (/BBB-/) via Citigroup Global Markets Inc., Jefferies & Co. and Wells Fargo Securities, LLC.

The Markit CDX North American Investment Grade 29 index ended the day mostly unchanged at a spread of 48 basis points.

Citi prices $3 billion

Citigroup (Baa1/BBB+/A) priced $3 billion of fixed-to-floating-rate notes in two tranches on Wednesday, according to a market source.

The company sold $2 billion of 3.142% notes due Jan. 24, 2023 at a spread of Treasuries plus 75 bps. The notes will convert to a floating rate after the initial fixed-rate period.

Citigroup priced $1 billion of 3.878% notes due Jan. 24, 2039 at a Treasuries plus 102 bps spread. The notes will convert to a floating rate after the initial fixed-rate period.

Citigroup Global Markets Inc. was the bookrunner.

Citigroup is a financial services company based in New York.

Westpac brings $2.5 billion

Westpac Banking priced $2.5 billion of notes (Aa3/AA-/AA-) in three parts on Wednesday, according to a market source.

The company sold $500 million of three-year floating-rate notes at Libor plus 34 bps.

Westpac Banking priced $1 billion of 2.65% three-year notes with a spread of Treasuries plus 52 bps.

The $1 billion tranche of 3.4% 10-year notes was placed with a Treasuries plus 87 bps spread.

BofA Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. LLC and Westpac Banking Corp. were the bookrunners.

The Sydney, Australia-based bank plans to use the proceeds for general corporate purposes.

Deutsche sells $2.15 billion

Deutsche Bank, New York priced $2.15 billion of notes (Baa2/BBB-) in two tranches on Wednesday, a market source said.

The company sold $650 million of three-year floating-rate notes at Libor plus 81.5 bps.

The $1.5 billion tranche of 3.15% three-year fixed-rate notes priced with a spread of Treasuries plus 100 bps.

Deutsche Bank Securities Inc. was the bookrunner.

Deutsche Bank is a banking and financial services company based in Frankfurt.

PNC Bank prices

PNC Bank priced $2 billion of senior bank notes (A2/A/A+) in three tranches on Wednesday, according to a market source.

The bank sold $400 million of three-year floating-rate notes at Libor plus 25 bps.

PNC Bank priced $900 million of 2.5% three-year fixed-rate notes at a spread of Treasuries plus 43 bps.

In the final tranche, the company sold $700 million of 3.25% 10-year notes with a Treasuries plus 73 bps spread.

Citigroup Global Markets, Goldman Sachs, J.P. Morgan Securities LLC and PNC Capital Markets LLC were the bookrunners.

PNC Bank is a subsidiary of PNC Financial Services Group, Inc., a Pittsburgh, Penn.-based financial services holding company.

TPG Lending prints

TPG Specialty Lending priced $150 million of 4.5% five-year notes (/BBB-/BBB-) on Wednesday at a spread of 212.5 bps over Treasuries, according to a market source, news release and filings with the Securities and Exchange Commission.

The notes came tighter than initial talk in the Treasuries plus 225 bps area and on top of later guidance at Treasuries plus 212.5 bps.

The notes priced at 99.969 to yield 4.507%.

BofA Merrill Lynch, Citigroup Global Markets, HSBC Securities (USA) Inc., J.P. Morgan Securities, SunTrust Robinson Humphrey, Inc. Mizuho Securities USA LLC, Barclays, Goldman Sachs, Morgan Stanley and Raymond James & Associates, Inc. were the bookrunners.

Proceeds will be used to pay down debt outstanding under the company’s revolving credit facility.

In connection with the offering, TSLX said it intends to enter into an interest rate swap to better align the interest rates of its liabilities with its investment portfolio, which consists mostly of floating-rate loans.

TPG Specialty Lending is a Fort Worth, Texas-based specialty finance company focused on lending to middle-market companies.

Dexia places $1.5 billion

In SSA supply, Dexia Credit Local SA (Aa3/AA/BBB+) priced $1.5 billion of 2.5% senior notes due Jan. 25, 2021 in a Rule 144A and Regulation S offering on Wednesday at a spread of 45.9 bps over Treasuries, according to a market source.

Barclays, Citigroup Global Markets, Goldman Sachs., HSBC Securities and Societe Generale CIB were the bookrunners.

The regional bank, focusing on sustainable development, is based in Brussels, Belgium.

EDC raises $1.25 billion

Export Development Canada (Aaa/AAA) priced a $1.25 billion U.S. dollar-denominated offering of 2.5% five-year global notes on Wednesday at 99.823 to yield 2.538%, according to a market source and an FWP filing with the SEC.

The notes priced with a spread of mid-swaps plus 10 bps, or Treasuries plus 15.55 bps.

The notes were initially talked to price in the mid-swaps plus 11 bps area.

BofA Merrill Lynch, BMO Capital Markets Corp., Credit Agricole Corporate & Investment Bank and J.P. Morgan Securities plc were the bookrunners.

Proceeds will be used for general corporate purposes.

Ottawa-based Export Development Canada is a Canadian government-owned export credit agency.

Kommuninvest prints $1 billion

Kommuninvest (Aaa/AAA/) priced $1 billion of 2.375% long three-year notes in a Rule 144A and Regulation S offering on Wednesday at a spread of mid-swaps plus 4 bps or Treasuries plus 23.35 bps, according to a market source.

The notes were initially talked to price in the mid-swaps plus 6 bps area.

Citigroup Global Markets, Nomura Securities International Inc., Nordea Bank AB and TD Securities (USA) LLC were the bookrunners.

Kommuninvest is an Orebro-based company that offers funding to municipalities of Sweden.

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