Morning Commentary: Fifth Third to sell five-year notes; Regions plans add-on to 3.8% notes

By Devika Patel

Knoxville, Tenn., Jan. 23 – The investment-grade bond market saw three new offerings emerge early in the primary market on Wednesday.

Cincinnati-based financial services company Fifth Third Bancorp said it plans to sell fixed-rate senior notes due 2024.

Regions Financial Corp., a Birmingham, Ala.-based financial services company, announced an add-on to its 3.8% senior notes due Aug. 14, 2023.

And Munich-based German state-owned wind-down agency FMS Wertmanagement launched an offering of fixed-rate senior notes.

Fifth Third notes on tap

Fifth Third is selling fixed-rate senior notes due 2024, which feature a par call 30 days prior to the maturity date.

Morgan Stanley & Co. LLC, Fifth Third Securities Inc., Goldman Sachs & Co. LLC and RBC Capital Markets LLC are the bookrunners.

Proceeds will be used for general corporate purposes.

Regions preps add-on

Regions plans to price an add-on to its 3.8% senior notes due Aug. 14, 2023.

The company priced $500 million of the notes at 99.941 to yield 3.813% with a spread of 98 basis points over Treasuries on Aug. 8, 2018, with the sale settling on Aug. 13, 2018.

The bonds have a make-whole call at Treasuries plus 15 bps until July 14, 2023 and are then callable at par.

Goldman Sachs, Barclays, Credit Suisse Securities (USA) LLC, Regions Securities LLC and UBS Securities LLC are the bookrunners.

Proceeds will be used for general corporate purposes.

FMS offers fixed-rate notes

FMS intends to offer non-callable fixed-rate senior notes.

BofA Merrill Lynch, Citigroup Global Markets Inc., Commerzbank Capital Markets Corp., Credit Agricole CIB and TD Securities (USA) LLC are the joint bookrunners.

Proceeds will be used to refinance liabilities in order to replace maturing, short-term money market instruments with long-term funding, as well as for general corporate purposes.

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