Ryder prices $300 million; deal volume slows ahead of holiday; MUFG mixed; Goldman better

By Cristal Cody

Tupelo, Miss., Feb. 16 – The high-grade bond market saw one new reported bond deal price as primary action begins to slow ahead of the long Presidents’ Day holiday weekend.

Ryder System, Inc. brought a $300 million offering of five-year medium-term notes.

The bond markets will be closed on Monday for the holiday. An early market close is not scheduled for Friday’s session.

In other activity, Parker-Hannifin Corp. was expected to wrap its roadshow on Thursday for an offering of dollar-denominated senior notes and euro-denominated bonds.

Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC arranged the roadshow that started in the U.S. market on Monday and continued through Thursday in Europe.

Parker-Hannifin intends to offer $2.5 billion of fixed-rate senior notes (Baa1/A/A-) in private transactions, according to an 8-K filing with the Securities and Exchange Commission.

The Cleveland-based manufacturer of motion and control technologies plans to use proceeds from the deals to finance a portion of its acquisition of Clarcor Inc.

The Markit CDX North American Investment Grade index closed the day about 1 basis point softer a spread of 64 bps.

Mitsubishi UFJ Financial Group, Inc.’s senior notes (A1/A/A) priced on Wednesday were seen earlier flat to about 2 bps better than issuance in secondary trading.

Goldman Sachs Group Inc.’s notes (A3/A/) reopened on Monday were mixed.

Ryder sells $300 million

Ryder System priced a $300 million offering of 2.8% five-year medium-term notes at 99.837 and a spread of 90 bps over Treasuries on Thursday, according to a market source and a 424B3 filed with the SEC.

The notes due March 1, 2022 (Baa1/BBB+/A-) priced on the tight side of guidance in the Treasuries plus 95 bps area, plus or minus 5 bps.

Lloyds Securities Inc., Morgan Stanley, MUFG, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.

Ryder System is a Miami-based truck rental and fleet management company.

MUFG flat to tighter

MUFG’s 2.998% notes due Feb. 22, 2022 firmed about 2 bps to 98 bps offered, according to a market source early Thursday.

The company priced $1 billion of the five-year notes on Wednesday at a spread of Treasuries plus 100 bps.

MUFG’s 3.677% notes due Feb. 22, 2027 traded wrapped around issuance in the 118 bps area.

The $1 billion tranche of 10-year notes priced at a Treasuries plus 118 bps spread in Wednesday’s offering.

The bank is based in Tokyo.

Goldman better

Goldman Sachs’ 3% notes due April 26, 2022 headed out slightly better at 99.83 on Thursday from 99.62 in the previous session, a market source said.

Godman Sachs priced $1 billion of the five-year notes in a reopening on Monday at 99.711 to yield 3.061% and a spread of 115 bps over Treasuries.

The tranche originally priced in a $2.25 billion offering on Jan. 23 at 99.68 to yield 3.067%, or 120 bps over Treasuries.

Goldman Sachs’ 3.85% notes due Jan. 26, 2027 closed higher at 100.45, compared to 99.89 where the paper last traded in the previous session.

The company sold $1.25 billion of the 10-year notes in a reopening on Monday at 100.146 to yield 3.832% and a spread of Treasuries plus 140 bps.

Goldman Sachs originally sold $1.75 billion of the 10-year notes on Jan. 23 at 99.72 to yield 3.884%, or Treasuries plus 148 bps.

The banking, securities and investment management company is based in New York.

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