Nationwide Building, WestRock, NWB price notes; CVS, Toyota Industries in deal pipeline

By Cristal Cody

Tupelo, Miss., March 1 – Three issuers tapped the primary market on Thursday after heavy supply in the first half of the week.

Nationwide Building Society priced $1.75 billion of senior non-preferred medium-term fixed-to-floating-rate notes in two tranches.

WestRock Co. sold $1.2 billion of guaranteed senior notes in two parts.

Also, Nederlandse Waterschapsbank NV priced a $250 million tap of its senior floating-rate notes due Aug. 9, 2019.

Deal action is expected to be heavy in March after February closed out with strong supply at the end of the month and with several issuers marketing bonds, sources report.

CVS Health Corp. is expected in the near future with a bond offering as large as $45 billion.

Toyota Industries Corp. intends to hold a roadshow for a benchmark dollar-denominated issue.

“After a subdued start earlier in February, high grade supply volumes are now surprising to the upside,” BofA Merrill Lynch analysts said in a note released on Thursday. “Already $35 [billion] has been priced during the first three days of this week, including $14 [billion on Wednesday], making it the second busiest week this year.”

About $25 billion to $30 billion of total bond issuance was predicted by market sources for the final week of February.

The Markit CDX North American Investment Grade 29 index softened nearly 2 basis points to a spread of 58 bps.

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