Lloyds Bank, Transcontinental Gas Pipe Line issue bonds; banking, energy spreads widen

By Aleesia Forni

New York, Jan. 19 – Lloyds Bank plc and Transcontinental Gas Pipe Line Co. LLC priced new bonds to kick off the shortened week on Tuesday. Continued market volatility kept a majority of issuers on the sidelines.

Lloyds entered the primary market with a $1.2 billion two-part offering of three-year notes.

There was $750 million of 2.05% notes sold at Treasuries plus 100 basis points and a $450 million floating-rate tranche of notes sold at par to yield Libor plus 100 bps.

In the secondary market, existing bonds from Lloyds traded around 1 bp better on the day, while banking and financial names overall were around 4 bps wider.

Back in the primary, Transcontinental issued $1 billion of bonds in its first entrance into the U.S. high-grade market in nearly four years as crude oil prices fell more than 3% during the session.

The company’s 10-year notes priced to yield 7.875%, at the tightest side of guidance set in the 8% area.

Even with the tumultuous backdrop, bonds from Shell International Finance BV were trading tighter on Tuesday.

The company’s 4.3% bonds due 2019 and 2.125% bonds due 2020 were each 6 bps better.

However, energy sector spreads were around 10 bps wider on the day overall.

And the Markit CDX North American Investment Grade 25 index lost some earlier gains to close the session 4 bps wider at a spread of 110 bps.

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