Bank of America, Morgan Stanley, PNC Financial, PNC Bank, Comerica price; inflows rise

By Cristal Cody

Tupelo, Miss., July 18 – Financial issuers came out to tap the high-grade primary market on Thursday with new bond deals after releasing earnings reports this week.

Bank of America Corp. sold $2.5 billion of fixed-to-floating-rate senior notes due 2030 following the release on Wednesday of its second quarter earnings.

Morgan Stanley priced $2 billion of fixed-to-floating-rate senior notes after reporting better-than-expected earnings results before the market opened Thursday.

PNC Financial Services Group, Inc. sold $1 billion of registered seven-year senior notes following the release of its earnings report on Wednesday.

PNC Bank, NA also sold $1.5 billion of subordinated notes in two tranches, better than initial talk on Thursday.

Meanwhile, Comerica Inc. and Comerica Bank priced $700 million of senior notes in new and reopened tranches.

In other financial issuance, Royal Bank of Canada tapped the Regulation S market with a C$1.5 billion offering of 10-year fixed-to-floating-rate non-viability contingent capital subordinated debentures.

High-grade corporate issuers have priced more than $14 billion of bonds week to date with volume heaviest on Monday and Thursday.

About $25 billion to $30 billion of supply was forecast by market sources for the week.

Lipper US Fund Flows reported Thursday that corporate investment-grade fund inflows climbed to $3.65 billion for the week ended Wednesday from $570 million in the previous week.

The Markit CDX North American Investment Grade 32 index firmed about 1 basis point on Thursday to a spread of 53 bps.

Bank of America prices $2.5 billion

Bank of America sold $2.5 billion of 3.194% fixed-to-floating-rate senior notes due July 23, 2030 (A2/A-/A+) on Thursday at par to yield a spread of 113 bps over Treasuries, according to a market source.

The bank notes will convert to a floating rate of Libor plus 118 bps after the initial fixed-rate period.

BofA Securities, Inc. was the bookrunner.

The financial services company is based in Charlotte, N.C.

Morgan Stanley sells $2 billion

Morgan Stanley (A3/BBB+/A) priced $2 billion of global medium-term fixed-to-floating-rate senior notes due July 22, 2025 on Thursday at par to yield 2.72%, according to an FWP filing with the Securities and Exchange Commission.

Morgan Stanley & Co. LLC was the bookrunner.

The coupon will reset to a floating rate of SOFR plus plus 115.2 bps from July 22, 2024 to but excluding the maturity date.

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

PNC Bank prices $1.5 billion

PNC Bank sold $1.5 billion of subordinated notes (A2/A-/A+) in two tranches, better than initial talk, on Thursday, according to a market source.

The bank sold $900 million of three-year floating-rate notes at par to yield Libor plus 45 bps.

PNC Bank priced $600 million of 2.232% fixed-to-floating-rate notes due July 22, 2022 at a spread of Treasuries plus 48 bps. The notes will convert to a floating rate of Libor plus 44 bps following the initial fixed-rate period.

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley 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.

PNC Financial brings $1 billion

PNC Financial Services Group sold $1 billion of 2.6% senior notes due July 23, 2026 (A3/A-/A+) on Thursday at a spread of 75 bps over Treasuries, according to an FWP filing with the SEC.

The notes notes priced at 99.809 to yield 2.63%.

PNC Capital Markets, Goldman Sachs, J.P. Morgan Securities and Morgan Stanley were the bookrunners.

PNC Financial Services is a Pittsburgh-based financial services holding company.

Comerica: new, reopened notes

Comerica and Comerica Bank priced $700 million of senior notes in two tranches on Thursday, according to a market source and an FWP filing with the SEC.

Comerica Bank priced $500 million of new 3(a)2 exempt 2.5% five-year notes (A3/A-/A) at a spread of 75 bps over Treasuries.

The notes priced on the tight side of guidance in the 78 bps spread area.

Comerica brought a $200 million add-on to its 4% senior notes due Feb. 1, 2029 on the firm side of guidance at a spread of 105 bps over Treasuries.

The notes (A3/BBB+/A) priced at 107.371 to yield 3.079%.

The company first sold $350 million of the notes on Jan. 28 at 99.625 to yield 4.046% and a spread of Treasuries plus 130 bps. The total outstanding is now $550 million.

J.P. Morgan Securities, Morgan Stanley and RBC Capital Markets LLC were the bookrunners on both deals.

The financial services company is based in Dallas.

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