Fidelity National Information, Mizuho, MUFG lead financial new issues; JPMorgan paper eyed

By Aleesia Forni and Cristal Cody

Virginia Beach, Oct. 13 – Financial issuers led a charge of deals to the high-grade primary market on Tuesday, offering more than $11 billion of new issuance during the session.

New deals from Fidelity National Information Services Inc., Mizuho Bank Ltd., Mizuho Financial Group Inc., Santander UK Group Holdings plc, Banco Bilbao Vizcaya Argentaria, SA and Mitsubishi UFJ Trust and Banking Corp. kicked off the shortened week, which sources say could see more than $20 billion of supply.

Because of a weaker market backdrop on Tuesday, with stocks sliding following seven straight days of gains, one source noted that initial pricing thoughts were wider on some of the day’s new deals.

Tranches of Mizuho Bank’s new deal sold up to 15 bps tighter than talk, while S.C. Johnson & Son Inc. saw the spread on its upsized 31-year notes offering launch 27.5 bps inside initial guidance.

The source also added that players will be keeping a close watch on the performance of the day’s deals in the secondary market to gauge the amount of issuance the primary could host during the remainder of the week.

JPMorgan Chase & Co.’s paper (A3/A/A+) was flat to softer in trading after the company reported third-quarter earnings, which missed analysts’ expectations.

Bank of America Corp.’s 3.875% senior notes due 2025 headed out 2 bps softer in the secondary market.

The Markit CDX North American Investment Grade 25 index eased 2 bps on Tuesday to a spread of 84 bps.

The high-grade index has ranged from a low spread of 60.7 bps to a high spread of 94.8 bps over the past 12 months, according to a Barclays Bank plc report on Tuesday.

Fidelity sells $4.75 billion

In the largest new issue priced on Tuesday, Fidelity National Information Services sold $4.75 billion of senior notes (Baa3/BBB) in four tranches, a market source said.

There was $750 million of 2.85% three-year notes sold at Treasuries plus 195 bps. The notes priced tighter than price talk in the Treasuries plus 205 bps area.

A $1.75 billion 3.625% tranche of five-year notes priced with a 230 bps spread over Treasuries. The notes priced at the tight end of price talk that was in the Treasuries plus 235 bps area.

Also, $500 million of 4.5% seven-year notes sold at Treasuries plus 280 bps.

The company also priced a $1.5 billion tranche of 5% 10-year notes with a spread of Treasuries plus 300 bps.

The seven- and 10-year tranches priced on top of price talk.

Bookrunners for the deal were BofA Merrill Lynch, Credit Agricole, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., HSBC Securities, J.P. Morgan Securities LLC, MUFG and U.S. Bancorp Investments Inc.

The Jacksonville, Fla.-based banking and payment technologies company plans to use the proceeds from the offering to fund the acquisition of SunGard and its subsidiaries.

Mizuho taps market

Also on Tuesday, Mizuho Bank and Mizuho Financial Group were in the primary market selling $2.75 billion of notes in four parts, a market source said.

Mizuho Bank sold $500 million of three-year floating-rate notes (A1/A) at par to yield Libor plus 119 bps.

There was also $500 million of 2.15% three-year notes (A1/A) sold at 99.942 to yield 2.17%, or Treasuries plus 125 bps.

A third tranche was $1 billion of 2.7% five-year notes (A1/A), which sold at Treasuries plus 135 bps. Pricing was at 99.944 to yield 2.712%.

Finally, Mizuho Financial Group sold a $750 million tranche of 4.353% 10-year bonds (BBB+/BBB) at par with a spread of 230 bps over Treasuries.

BofA Merrill Lynch, Goldman Sachs & Co., JPMorgan and Mizuho Securities were the joint bookrunners for the Rule 144A and Regulation S deal.

Mizuho Bank is the retail and corporate banking unit of Tokyo-based Mizuho Financial Group.

MUFG prices tight

Mitsubishi UFJ Trust and Banking sold a $1.25 billion 2.65% offering of five-year senior notes (A1/A+) during the trading day at Treasuries plus 132 bps, near the tight end of guidance set in the 135 bps area over Treasuries, an informed source said.

The Tokyo-based bank’s issue sold at 99.921 to yield 2.667%.

Citigroup, JPMorgan, Morgan Stanley & Co. LLC and MUFG are the bookrunners for the Rule 144A and Regulation S deal.

BBVA sells senior notes

Banco Bilbao Vizcaya Argentaria sold $1 billion of 3% senior notes (Baa1/BBB+/A-) on Tuesday at Treasuries plus 175 bps, according to a market source and an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.558 to yield 3.096%.

The notes were guided in the area of Treasuries plus 180 bps after being initially talked in the range of Treasuries plus 180 bps to 185 bps.

Bookrunners were BBVA, Citigroup, Deutsche Bank Securities Inc. and Morgan Stanley.

Proceeds will be used for general corporate purposes.

The bank and finance company is based in Bilbao, Spain.

Santander five-years

Santander UK Group was in Tuesday’s market with a $1 billion offering of 2.875% five-year senior notes (Baa1/BBB) that sold at Treasuries plus 155 bps, according to a market source. The issue sold at 99.843 to yield 2.909%.

Bookrunners are Barclays, BofA Merrill Lynch, HSBC Securities and Santander.

Proceeds will be used for general corporate purposes.

The provider of banking and financial products and services is based in London.

S.C. Johnson upsizes

Also on Tuesday, S.C. Johnson & Son sold an upsized $850 million offering of 4.75% 31-year senior notes (A/A-) on Tuesday at Treasuries plus 187.5 bps, a source said.

Price guidance was set in the 190 bps area over Treasuries, having tightened from talk set in the 215 bps area over Treasuries.

Bookrunners are BofA Merrill Lynch, Citigroup, Credit Suisse Securities and JPMorgan.

The notes were sold via Rule 144A and Regulation S.

The consumer products company is based in Racine, Wis.

OeKB sets talk

Oesterreichische Kontrollbank AG joined the forward calendar during the session, announcing on Tuesday price talk for a planned $1 billion offering of five-year notes, a market source said.

The notes (Aaa/AA+) are talked in the mid-swaps plus 30 bps area.

Barclays, Citigroup and JPMorgan are the bookrunners.

The export and financial services company for Austrian businesses is based in Vienna.

JPMorgan mixed

JPMorgan Chase’s 2.75% notes due 2020 eased 5 bps to 117 bps bid in the secondary market, a source said.

The company sold $2.75 billion of the five-year notes on June 18 at a spread of Treasuries plus 115 bps.

JPMorgan’s 3.9% notes due 2025 headed out unchanged at 150 bps bid.

The notes were seen earlier in the day 4 bps tighter at 142 bps offered.

JPMorgan Chase sold $2.5 billion of the notes on July 14 at 155 bps over Treasuries.

The financial services company is based in New York City.

Bank of America eases

Bank of America’s 3.875% senior notes due 2025 eased 2 bps to 161 bps bid, a market source said.

Bank of America sold $2.5 billion of the notes (Baa1/A-/A) on July 27 at 167 bps over Treasuries.

The financial services company based in Charlotte, N.C.

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