Wells Fargo sells $3.75 billion to end busy week; Johnson & Johnson, Goldman, MUFG tighten

By Aleesia Forni and Cristal Cody

New York, Feb. 26 – Wells Fargo & Co. sold a $3.75 billion issue of five-year notes in two parts to cap off what has been a lively week for the high-grade primary.

The market hosted roughly $45.2 billion of new investment-grade issuance during the week just completed, blowing away earlier predictions of around $30 billion.

Wells Fargo’s new deal continued the week’s trend and received a solid reception from investors. The deal priced around 12.5 basis points inside initial price guidance and attracted an order book that was more than four times oversubscribed.

With a significant pipeline of potential issuers, the pace of activity is expected to carry over into the week ahead, with some sources calling for another $40 billion-plus week.

One market source noted the potential for a larger merger-and-acquisition financing deal, along with another bout of issuance from the financial sector.

Market tone improved over the week, “especially with the J&J deal,” a trader said Friday. “It seemed like it quieted down fairly early today.”

Wells Fargo’s new notes were not seen in aftermarket trading late afternoon on Friday.

Johnson & Johnson’s senior notes (Aaa/AAA/AAA) that priced in seven tranches totaling $7.5 billion on Thursday tightened in the secondary market Friday.

Goldman Sachs Group Inc.’s 3.75% senior notes due 2026 firmed about 8 bps over the day.

Mitsubishi UFJ Financial Group, Inc.’s new 3.85% senior notes due 2026 improved about 5 bps.

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