Walmart, Citigroup, JPMorgan, PNC price nearly $10 billion of notes; KfW raises $3 billion

By Cristal Cody

Tupelo, Miss., April 16 – High-grade issuers priced $12.75 billion of bonds, including $9.75 billion of corporate issuance, over Tuesday’s session.

Walmart Inc. led deal volume with a $4 billion three-part offering of fixed-rate senior notes that priced on the tight side of guidance.

Citigroup Inc. and JPMorgan Chase & Co. tapped the primary market following earnings releases.

Citigroup sold $2.75 billion of six-year notes following the company’s first-quarter earnings report on Monday.

JPMorgan priced a $1.5 billion reopening of its 3.964% senior fixed-to-floating rate notes due Jan. 15, 2048. The company reported earnings on Friday.

Also on Tuesday, PNC Financial Services Group, Inc. sold $1.5 billion of 10-year senior notes.

In supply in the sovereign, supranational and agency markets, KfW priced $3 billion of two-year global notes.

Week to date, corporate issuers have brought $12.45 billion of notes to the primary market.

Volume was light on Monday’s U.S. tax day with one reported deal from BMW US Capital, LLC, which priced a $2.7 billion four-part offering of senior notes.

About $10 billion to $15 billion of weekly supply is expected by syndicate sources. The bond markets are scheduled to close at 2 p.m. ET on Thursday and remain closed on Friday for the Good Friday holiday.

The Markit CDX North American Investment Grade 32 index softened more than 2 basis points on Tuesday to a spread of 57 bps.

Walmart prices $4 billion

Walmart priced $4 billion of fixed-rate senior notes (Aa2/AA/AA) in three tranches on the tight side of guidance on Tuesday, according to a market source.

A $1.5 billion tranche of 2.85% five-year notes priced with a Treasuries plus 47 bps spread.

The $1.25 billion of 3.05% seven-year notes came at a spread of 57 bps over Treasuries.

Walmart sold $1.25 billion of 3.25% 10-year notes with a Treasuries plus 67 bps spread.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp. and NatWest Markets Securities Inc. were the managers.

The discount retailer is based in Bentonville, Ark.

Citigroup prints $2.75 billion

Citigroup sold $2.75 billion of 3.325% senior notes due April 24, 2025 (A3/BBB+/A) at a spread of Treasuries plus 95 bps on Tuesday, according to a market source.

Initial price talk was in the Treasuries plus 110 bps area.

Citigroup Global Markets Inc. was the bookrunner.

The financial services company is based in New York.

JPMorgan taps issue

JPMorgan priced a $1.5 billion reopening of its 3.964% senior fixed-to-floating rate notes due Jan. 15, 2048 (A2/A-/AA-) at a spread of Treasuries plus 115 bps on Tuesday, according to a market source.

Price talk was in the Treasuries plus 120 bps spread area.

The notes convert Nov. 15, 2047 to a floating rate of Libor plus 138 bps.

J.P. Morgan Securities LLC was the bookrunner.

JPMorgan originally issued $1.75 billion of the notes on Nov. 10, 2017 at a spread of Treasuries plus 115 bps. The company issued a $250 million add-on to the notes on Dec. 12, 2017 at 101.761. The total outstanding now is $3.5 billion.

The New York-based financial services firm plans to use the proceeds for general corporate purposes.

PNC sells notes

PNC Financial Services Group sold $1.5 billion of 3.45% 10-year senior notes (A3/A-/A+) on Tuesday at a spread of 88 bps over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes notes priced at 99.84 to yield 3.469%.

Price guidance was in the Treasuries plus 90 bps area, in from initial talk in the Treasuries plus 95 bps to 100 bps area.

JPMorgan, Barclays, Citigroup and PNC Capital Markets LLC were the bookrunners.

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

KfW prices $3 billion

KfW (Aaa/AAA/Scope: AAA) priced $3 billion of 2.375% two-year global notes at 99.772 to yield a spread of mid-swaps flat on Tuesday, according to a market source and an FWP filing with the SEC.

Price guidance was in the mid-swaps plus 1 bp area.

HSBC, Morgan Stanley and Nomura Securities International, Inc. were the bookrunners.

KfW is a government-backed bank based in Frankfurt.

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