Raymond James upsizes add-on; Apple firms slightly; Sherwin-Williams, Barclays tighten

By Cristal Cody

Tupelo, Miss., May 5 – Raymond James Financial Inc. finished the week’s primary action with an upsized $500 million add-on to its 4.95% senior notes due July 15, 2046 on Friday.

High-grade deal volume is expected to stay strong with about $30 billion to $35 billion of supply in the upcoming week, depending on any fallout from the French presidential election on Sunday, a market source said.

New bonds priced over the week traded mostly better in the secondary market on Friday.

Apple Inc.’s $7 billion of notes (Aa1/AA+) priced in six tranches on Thursday improved about 1 basis point to 2 bps.

Sherwin-Williams Co.’s $6 billion of senior notes (Baa3/BBB/BBB) brought to market in five tranches on Tuesday tightened about 5 bps to 8 bps in secondary trading.

Barclays Bank plc’s $2 billion offering of 4.836% subordinated notes due May 9, 2028 sold on Tuesday traded more than 10 bps better in the secondary market.

The Markit CDX North American Investment Grade index ended the day about 1 bp tighter at a spread of 62 bps.

Raymond James taps bonds

Raymond James Financial priced an upsized $500 million add-on to its 4.95% senior notes due July 15, 2046 (Baa2/BBB+/) on Friday at 102.701 to yield 4.777%, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced with a spread of 178 bps over Treasuries, on the tight side of guidance in the Treasuries plus 180 bps area, plus or minus 2 bps.

The deal was upsized from $250 million.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Raymond James & Associates and Citigroup Global Markets Inc. were the bookrunners.

The company originally sold $300 million of the notes at a spread of Treasuries plus 280 bps in an offering that priced at 99.937 to yield 4.954% on July 7, 2016. The total outstanding now is $800 million.

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

Raymond James is a financial services company based in St. Petersburg, Fla.

Apple modestly firms

Apple’s 2.3% notes due May 11, 2022 were quoted on Friday in secondary trading at 44 bps bid, 42 bps offered, a market source said.

The company sold $1 billion of the notes on Thursday at a 45 bps over Treasuries spread.

Apple’s tranche of 3.2% notes due May 11, 2027 tightened to 83 bps bid, 80 bps offered.

The company sold $2 billion of the 10-year bonds in Thursday’s offering at an 85-bps spread over Treasuries.

Apple’s existing 3.5% notes due Feb. 9, 2027 softened about 3 bps to 86 bps bid on Friday, a separate source said.

Apple sold $2.25 billion of the notes on Feb. 2 at a spread of Treasuries plus 88 bps.

The computer, mobile communication and media devices company is based in Cupertino, Calif.

Sherwin-Williams tightens

Sherwin-Williams’ 2.75% notes due June 1, 2022 firmed to 87 bps bid, 84 bps offered in secondary trading, according to a market source on Friday.

Sherwin-Williams sold $1.25 billion of the five-year notes on Tuesday at a spread of Treasuries plus 95 bps.

The company’s 3.45% notes due June 1, 2027 traded at 115 bps bid, 112 bps offered.

The notes priced on Tuesday in a $1.5 billion tranche at a Treasuries plus 120 bps spread.

Sherwin-Williams is a Cleveland-based developer, manufacturer and distributor of paints and related products.

Barclays tightens

Barclays Bank’s 4.836% subordinated notes due May 9, 2028 tightened to 237 bps bid, 234 bps offered, according to a market source.

The bank sold $2 billion of the notes (Baa3/BBB-/A-) at par on Tuesday to yield a spread of Treasuries plus 255 bps.

Barclays Bank is a banking and financial services company based in London.

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