Volume surges; Rabobank, Burlington Northern, British Air, Deere, Scotiabank, CIBC price

By Cristal Cody

Tupelo, Miss., July 15 – High-grade issuers priced more than $5 billion of securities over Monday’s session.

Cooperatieve Rabobank U.A. sold $1 billion of five-year notes.

Burlington Northern Santa Fe, LLC came with $825 million of senior debentures due Feb. 15, 2050.

British Airways plc priced $806,166,000 of pass-through trust certificates in two classes.

John Deere Capital Corp. brought an upsized $600 million of 10-year senior medium-term notes to the primary market.

Bank of Nova Scotia priced $500 million of senior green bonds on Monday.

Canadian Imperial Bank of Commerce was in the primary market with $750 million of four-year fixed-to-floating-rate senior notes.

Reliance Standard Life Global Funding II priced an upsized $400 million of three-year funding agreement-backed notes.

Also, Terrafina, LLC sold $500 million of 10-year notes on Monday.

In addition, Westpac Banking Corp. was marketing subordinated notes in two tranches during the session.

About $25 billion to $30 billion of supply, led by bank and financial issuers, is expected by market sources this week.

Citigroup Inc. released its second quarter earnings report before the market opened on Monday.

On Tuesday, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Wells Fargo & Co. release their profit results, while Bank of America Corp. releases its earnings on Wednesday, followed by Morgan Stanley on Thursday.

Otherwise, supply in other sectors “should be relatively light” with non-financial corporate issuers in earnings blackout reporting periods, according to a BofA Merrill Lynch research note released on Monday.

The week typically has seen a historical average of $27 billion of deal volume, based on seasonality patterns, the note said.

Volume was heavy last week with investment-grade issuers pricing more than $32 billion of bonds, compared to syndicate forecasts of about $15 billion to $20 billion of volume.

Yankee bond issuance jumped to $28 billion last week, the highest since the first week of January 2017, and included nearly $17 billion of supply from Japanese issuers, according to the BofA Merrill Lynch note.

The Markit CDX North American Investment Grade 32 index closed mostly unchanged at a spread of 53 basis points.

Cooperatieve Rabobank prices

Cooperatieve Rabobank (Aa2/A+/AA-) priced $1 billion of 2.625% notes due July 22, 2024 at a spread of 83 bps over Treasuries, according to a market source.

Initial price talk was in the high-90 bps spread area.

BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

The bank and financial services company is based in Utrecht, Netherlands.

Burlington Northern prints

Burlington Northern Santa Fe sold $825 million of 3.55% senior debentures due Feb. 15, 2050 (A3/A+) at 99.702 to yield 3.566%, or a spread of 95 bps over Treasuries on Monday, according to an FWP filing with the Securities and Exchange Commission.

BofA Securities, Citigroup Global Markets Inc., Goldman Sachs, J.P. Morgan Securities, Morgan Stanley and Wells Fargo Securities LLC were the bookrunners.

The holding company for railroad transportation subsidiaries is based in Fort Worth, Texas.

BA sells $806.17 million

British Airways priced $806,166,000 of pass-through trust certificates in two classes on Monday, according to a market source.

British Airways Pass Through Trust 2019-1AA sold $542,971,000 of class AA certificates (Aa2/AA) at par to yield 3.3%. The class AA certificates are due June 15, 2034 and have a final distribution date of Dec. 15, 2032.

British Airways priced $263,195,000 of class A certificates (A3/A-) at par to yield 3.35%. The class A certificates are due Dec. 15, 2030 and have a final distribution date of June 15, 2029.

Citigroup Global Markets and Credit Suisse Securities (USA) LLC were the active bookrunners on both classes.

Passives were Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC.

British Airways is a United Kingdom airline company based in Waterside, Harmondsworth.

CIBC raises $750 million

Canadian Imperial Bank of Commerce (Aa2/A+/AA-) priced $750 million of 2.606% fixed-to-floating-rate senior notes due July 22, 2023 at a spread of 80 bps over Treasuries on Monday, according to a market source.

The notes will reset to a floating rate one year prior to maturity at Libor plus 78.5 bps.

Initial price talk was in the Treasuries plus 85 bps spread area.

BofA Securities, CIBC Capital Markets, Citigroup Global Markets, J.P. Morgan Securities and UBS Securities LLC were the bookrunners.

The diversified financial institution is based in Toronto.

John Deere Capital upsizes

John Deere Capital priced an upsized $600 million of 2.8% 10-year senior medium-term notes (A2/A/A) on Monday at a spread of 72 basis points over Treasuries, according to a market source and an FWP filing with the SEC.

The notes priced at 99.922 to yield 2.809%.

The deal was upsized from $500 million.

The notes priced on the tight side of guidance in the 75-bps spread area.

Barclays, BofA Securities and MUFG were the bookrunners.

John Deere Capital is a financing arm of Moline, Ill.-based farm equipment supplier Deere & Co.

Scotiabank sells green bonds

Bank of Nova Scotia priced $500 million of 2.375% senior green bonds due Jan. 18, 2023 at a spread of 58 bps over Treasuries on Monday, according to an FWP filing with the SEC.

The bail-inable notes (A2/A-/AA-) priced at 99.953 to yield 2.389%.

Scotia Capital Inc., BNP Paribas Securities Corp., ING Financial Markets LLC and J.P. Morgan Securities were the bookrunners.

The financial services company is based in Toronto.

Reliance Standard prints

Reliance Standard Life Global Funding II priced an upsized $400 million of 2.625% funding agreement-backed notes due July 22, 2022 (A2/A+) on Monday at a spread of 83 bps over Treasuries, according to a market source.

The notes were initially talked to price in the Treasuries plus 95 bps area with guidance tightened to the Treasuries plus 85 bps area, plus or minus 2 bps.

The deal was upsized from $300 million.

J.P. Morgan Securities and U.S. Bancorp Investments, Inc. were the bookrunners of the Rule 144A and Regulation S offering.

The issuer is a financing arm of Philadelphia-based Reliance Standard Life Insurance Co.

Terrafina in primary

Terrafina (Baa3) priced $500 million of 4.962% 10-year notes on Monday at a spread of 287.5 bps over Treasuries, according to a market source.

The notes were initially talked to price with a spread in the Treasuries plus 325 bps area.

Barclays, BBVA Securities Inc., Citigroup Global Markets and J.P. Morgan Securities were the bookrunners.

Terrafina is an East Stroudsburg, Pa.-based sustainability-focused specialty snack foods distributor.

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