Bryn Mawr offers notes; Vornado Realty holds calls; Air Canada, Baker Hughes bonds tighten

By Cristal Cody

Tupelo, Miss., Dec. 8 – The high-grade bond market stayed mostly quiet over Friday’s session with light deal action forecast for the week ahead.

Bryn Mawr Bank Corp. announced an offering of fixed-to-floating-rate subordinated notes due 2027. Keefe, Bruyette & Woods is the bookrunner.

Also on Friday, Vornado Realty Trust held fixed-income investor calls, a market source said. Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Jefferies LLC were the arrangers.

Vornado Realty Trust was in the primary market on Monday with $300 million of $25-par 5.25% split-rated series M cumulative redeemable perpetual preferred stock.

Looking ahead, supply is forecast to thin with a widely-expected rate hike by the Federal Reserve following its two-day meeting on Wednesday.

About $10 billion of issuance is forecast for the upcoming week, and syndicate sources are reporting a light deal pipeline for the remainder of the year.

In the secondary market on Friday, Air Canada’s $719,181,000 three-part Rule 144A and Regulation S private sale of enhanced equipment trust certificates priced on Thursday tightened about 2 basis points to 3 bps.

Vornado Realty Trust’s 5.25% preferreds remained soft in secondary trading during the session.

Baker Hughes, a GE Co. LLC’s $3.95 billion of notes (A3/A-/) priced in three tranches in a Rule 144A and Regulation S offering on Wednesday traded about 2 bps to 7 bps tighter in the secondary market.

Otherwise, market action was mostly light over the day with participants focused on the Labor Department’s November jobs report, which came in higher than expected with 228,000 jobs added over the month. Market analysts had forecast a gain of 195,000 jobs.

The Markit CDX North American Investment Grade 29 index tightened about 1 bp to close at a spread of 51 bps.

Bryn Mawr plans deal

Bryn Mawr Bank is marketing fixed-to-floating-rate subordinated notes due 2027 (Kroll: BBB+), according to a 424B5 filing with the Securities and Exchange Commission on Friday.

Keefe, Bruyette & Woods is the bookrunner.

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

Bryn Mawr Bank is a bank holding company based in Bryn Mawr, Pa.

Air Canada firms

Air Canada’s $400,108,000 of 3.3% series 2017-1 class AA certificates, priced on Thursday at a spread of Treasuries plus 93.3 bps, traded on Friday at 90 bps bid, 88 bps offered, a market source said.

The class AA certificates have a final expected distribution date of Jan. 15, 2030.

Montreal-based Air Canada is Canada’s largest domestic and international airline.

Vornado softens

Vornado Realty Trust’s 5.25% split-rated series M cumulative redeemable perpetual preferred stock softened to $24.76 bid, $24.82 offered, a source said on Friday.

Vornado Realty Trust sold $300 million of the $25.00-par preferreds (Baa3/BBB-/BB+) on Monday.

The preferreds are trading over the counter under the temporary symbol “VNNDP.”

The equity real estate investment trust is based in New York.

Baker Hughes tightens

Baker Hughes’ 3.337% notes due Dec. 15, 2027 tightened to 96 bps bid, 94 bps offered in secondary trading, according to a market source.

The company sold $1.35 billion of the 10-year notes on Wednesday at a 100 bps spread over Treasuries.

The $1.35 billion tranche of 4.08% notes due Dec. 15, 2047 firmed to 128 bps bid, 125 bps offered.

The bonds priced with a Treasuries plus 135 bps spread in the offering on Wednesday.

Baker Hughes is a Houston-based company that provides integrated oilfield products, services and digital solutions.

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