Corporate supply thins on volatility; Harley-Davidson, Ontario, Council of Europe price

By Cristal Cody

Tupelo, Miss., Feb. 6 – A handful of SSA issuers priced bonds on Tuesday, while one corporate issuer tapped the primary market as volatility in stocks and Treasuries hampered financial markets.

Harley-Davidson Financial Services, Inc. was the sole reported corporate issuer in the primary market on Tuesday. The company priced $350 million of five-year senior medium-term notes tighter than talk.

In other supply, the Province of Ontario (Aa2/AA-/) sold $3 billion of three-year global notes better than talk at a spread of mid-swaps plus 15 basis points. The notes were initially talked to price with a spread in the mid-swap plus 16 bps area.

The Council of Europe Development Bank came to the primary market with a no-grow $1 billion sale of five-year senior global notes that priced better than guidance.

Also, the European Investment Bank sold $3 billion of long three-year global notes on Tuesday tighter than talk.

Coming up on Wednesday, Sweden is expected to tap the primary market.

About $25 billion of new bond volume is forecasted by market sources for the week.

Harley-Davidson sells notes

In the corporate deal, Harley-Davidson Financial Services priced $350 million of 3.35% five-year senior medium-term notes (A3/A-/A) at a spread of 87.5 bps over Treasuries, according to a market source.

The notes were talked to price in the Treasuries plus 90 bps area.

J.P. Morgan Securities LLC, MUFG and Wells Fargo Securities, LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

The Chicago-based company is the financing arm of Harley-Davidson Inc.

EIB prices $3 billion

The European Investment Bank (Aaa/AAA/AAA) priced $3 billion of 2.375% long three-year global notes in its offering on Tuesday at a spread of mid-swaps plus 2 bps, or Treasuries plus 25.1 bps, according to a market source.

The notes were talked to price in the mid-swaps plus 3 bps area.

Citigroup Global Markets Ltd., J.P. Morgan Securities plc and RBC Capital Markets, LLC were the lead managers.

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

Council of Europe prints

The Council of Europe Development Bank (Aa1/AA+/AA+) came with $1 billion of 2.625% five-year senior global notes on Tuesday at 99.628 to yield 2.705%, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced with a spread of mid-swaps plus 11 bps, or Treasuries plus 21.8 bps. The issue was initially talked to price in a $1 billion offering with a spread in the mid-swaps plus 14 bps area.

Goldman Sachs International, HSBC Bank plc, Nomura Securities International, Inc. and TD Securities (USA) LLC were the lead managers.

The Paris-based Council of Europe Development Bank finances social projects to member states, financial institutions and local authorities for projects including public infrastructure and low-income housing.

Sweden markets notes

Looking ahead to Wednesday, Sweden (Aaa/AAA/AAA) plans to price a Rule 144A and Regulation S benchmark-sized offering of notes due Feb. 15, 2021, according to a market source.

The notes were talked to price with a spread in the mid-swaps plus flat area.

Barclays, Citigroup Global Markets and HSBC are the bookrunners.

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