Goldman sells $5 billion; Guardian Life, European Investment price; Harvest plans calls

By Cristal Cody

Tupelo, Miss., April 18 – More investment-grade bank paper came on Wednesday with market sources expecting the supply to continue on Thursday.

Goldman Sachs Group Inc. led the day’s bond deal volume with a $5 billion two-part offering of fixed-to-floating-rate senior notes.

In other corporate issuance, Guardian Life Global Funding sold $300 million of five-year notes.

Also on Wednesday, the European Investment Bank brought $1.5 billion of long seven-year notes to the primary market.

Coming up on Thursday, the European Bank for Reconstruction and Development (Aaa/AAA/AAA) plans to sell benchmark-sized three-year notes that were initially talked to price with a spread in the mid-swaps minus 2 basis points area.

In other market action, Harvest Operations Corp. will hold fixed-income investor calls beginning Thursday for a dollar-denominated note deal.

Market sources predict as much as $35 billion of volume for the week, though extra supply could push the total higher.

Deal action has picked up from the previous week.

JPMorgan Chase & Co., Citigroup Inc. and Delta Air Lines Inc. tapped the primary market on Monday.

During Tuesday’s session, issuers including Syngenta AG, AXA Equitable Holdings, Inc., Bank of Nova Scotia, Credit Agricole SA (London Branch), Sumitomo Mitsui Banking Corp., New York Branch, Cargill Inc., International Development Association and the Japan Finance Organization for Municipalities priced notes.

The Markit CDX North American Investment Grade 30 index ended the day mostly unchanged at a spread of 59 bps.

Goldman sells $5 billion

Goldman Sachs Group sold $5 billion of fixed-to-floating-rate senior notes (A3/BBB+/A) in two parts in line with guidance on Wednesday, according to a market source.

Goldman priced $3.5 billion of 4.223% notes due May 1, 2029 at a spread of Treasuries plus 135 bps. The notes will reset to a floating rate of Libor plus 130.1 bps after the initial fixed-rate period.

The company sold $1.5 billion of 4.411% notes due April 23, 2029 at a spread of Treasuries plus 135 bps. The notes will convert to a floating rate of Libor plus 143 bps after the initial fixed-rate period.

The deal had a total order book of $9 billion.

Goldman Sachs & Co. was the bookrunner.

Goldman Sachs Group is a New York-based banking, securities and investment management company.

Guardian prints $300 million

Guardian Life Global Funding sold $300 million of 3.4% five-year notes at a spread of 70 bps over Treasuries on Wednesday, a market source said.

The notes priced on the tight side of guidance in the Treasuries plus 70 bps to 72 bps area.

Deutsche Bank Securities Inc., Goldman Sachs and J.P. Morgan Securities LLC were the lead managers.

Guardian Life Global Funding is a financing arm of New York City-based Guardian Life Insurance Company of America.

European Investment prices

The European Investment Bank (Aaa/AAA/AAA) priced $1.5 billion of 2.875% long seven-year notes on Wednesday at a spread of mid-swaps plus 14 bps, or Treasuries plus 17.15 bps, according to a market source.

The notes were initially talked to price in the mid-swaps plus 15 bps area.

Barclays, Citigroup Global Markets Ltd. and HSBC Securities (USA) Inc. were the lead managers.

The lender for the European Union is based in Kirchberg, Luxembourg.

Harvest Operations plans deal

Harvest Operations (Aa2/AA/) plans to hold fixed income investor calls on Thursday and Friday for a dollar-denominated senior notes offering, according to a market source.

BofA Merrill Lynch and SMBC Nikko Securities America, Inc. are the arrangers.

Harvest Operations is a Canadian oil and natural gas company based in Calgary, Alta.

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