Morgan Stanley, PNC, Western and Southern, Dexia, Canada price; Ontario, Experian in pipeline

By Cristal Cody

Tupelo, Miss., Jan. 17 – Deal volume stayed strong over Thursday’s session with continued issuance in the financial space and supply from sovereign, supranational and agency issuers.

Morgan Stanley priced $3 billion of 11-year fixed-to-floating-rate senior notes.

PNC Financial Services Group, Inc. sold $750 million of five-year senior notes.

In other corporate issuance, Western and Southern Life Insurance Co. priced $500 million of 30-year notes following a round of fixed-income investor calls at the start of the week.

Other bank and financial issuers in the primary market this week have included Wells Fargo & Co., J.P. Morgan Chase & Co. and Citibank, NA.

Meanwhile, Dexia Credit Local SA priced $1.25 billion of three-year senior notes on Thursday.

Canada sold $3 billion of three-year global notes.

Coming up on Friday, the Province of Ontario plans to price a dollar-denominated offering of five-year global notes.

The deals follow the Province of Alberta’s $1.75 billion of five-year global bonds that priced on Tuesday.

Looking ahead to the upcoming week, Experian plc will hold a roadshow and conduct fixed-income investor calls for a dollar-denominated offering.

This week to date, high-grade issuers have priced more than $33 billion of bonds, including more than $25 billion of corporate notes.

For the week ended Wednesday, Lipper US Fund Flows reported inflows of $913 million for corporate investment-grade funds, compared with outflows of $1.14 billion in the previous week.

The Markit CDX North American Investment Grade 31 index tightened about 1 basis point to end the session at a spread of 75 bps.

New issues have mostly improved in the secondary market, sources said.

Fox Corp.’s $6.8 billion of notes (Baa2/BBB/) that priced on Tuesday have tightened more than 10 bps across all five tranches.

The company’s 4.709% notes due 2029 were quoted 14 bps tighter at 180 bps and trading more than a point higher in price in the 101.36 area.

Fox sold $2 billion of the bonds at par to yield a 200 bps over Treasuries spread.

Wells Fargo’s $5.5 billion of medium-term notes (A2/A-/A+) priced in two tranches of 3.75% notes due 2024 and 4.15% notes due 2029 on Wednesday tightened about 5 bps in the secondary market.

Morgan Stanley prices

Morgan Stanley (A3/BBB+/A) priced $3 billion of 4.431% global medium-term fixed-to-floating-rate senior notes due 2030 on Thursday at par to yield a spread of Treasuries plus 170 bps, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes were initially talked to print in the Treasuries plus 185 bps area.

Morgan Stanley & Co. LLC was the bookrunner.

The coupon will reset to a floating rate of Libor plus 162.8 bps from Jan. 23, 2029 to but excluding the maturity date.

Morgan Stanley is a New York-based financial products and services company.

PNC Financial sells notes

PNC Financial Services sold $750 million of 3.5% five-year senior notes at 99.773 to yield 3.55%, or a spread of 100 bps over Treasuries, on Thursday, according to a market source and an FWP filing with the SEC.

The notes (A3/A-/A+) were initially talked to price with a spread in the Treasuries plus 115 bps to 120 bps area.

Morgan Stanley, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and PNC Capital Markets LLC were the bookrunners.

PNC Financial Services is a Pittsburgh-based financial services holding company.

Western and Southern Life sells

Western and Southern Life Insurance priced $500 million of 5.15% 30-year surplus notes (A2/A/A+) on Thursday at a spread of 210 bps over Treasuries, according to a market source.

The deal was upsized from $400 million.

The notes were initially talked to price in the Treasuries plus 225 bps area.

Citigroup, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the bookrunners for the Rule 144A- and Regulation S-eligible offering.

The company held fixed-income investor calls for the issue on Monday and Tuesday.

Western and Southern Life Insurance is a Cincinnati-based provider of life insurance, annuity and investment products.

Dexia Credit brings notes

Dexia Credit Local (Aa3/AA/BBB+) priced $1.25 billion of 2.875% senior notes due 2022 on Thursday at mid-swaps plus 25 bps, or a spread of Treasuries plus 37.2 bps, according to a market source.

Initial price talk was in the mid-swaps plus 25 bps area.

Citigroup, Credit Agricole CIB, Goldman Sachs and HSBC Securities (USA) Inc. were the bookrunners of the Rule 144A and Regulation S offering.

Dexia Credit Local is a Brussels-based regional bank focused on sustainable development.

Canada prices $3 billion

Canada (Aaa/AAA/) priced $3 billion of 2.625% three-year global notes on Thursday at a spread of 10 bps over Treasuries, according to a market source and an FWP filing with the SEC.

The notes were initially talked to price with a spread in the Treasuries plus 12 bps area with guidance later tightened by 1 bp.

Canada sold the notes at 99.977 to yield 2.633%.

BMO Capital Markets Corp., Citigroup, BofA Merrill Lynch, National Bank Financial Inc. and RBC Capital Markets, LLC were the lead managers.

Ontario to tap primary

Ontario (Aa2/AA-/) intends to price a dollar-denominated offering of five-year global notes on Friday, according to a market source.

The notes were initially talked to price in the mid-swap plus 38 bps area.

BofA Merrill Lynch, CIBC World Markets Corp., HSBC and Morgan Stanley are the bookrunners.

Experian plans roadshow

Experian (Baa1/A-/) intends to hold a roadshow and conduct fixed-income investor calls in the week ahead for dollar-denominated 10-year senior notes, according to an informed source.

The company is scheduled to hold meetings and calls from Monday through Wednesday in the U.S. and U.K. markets for the Rule 144A and Regulation S offering.

BofA Merrill Lynch, BNP Paribas Securities Corp., Mizuho Securities USA Inc. and Societe Generale CIB are the arrangers.

Experian is a consumer credit reporting agency based in Dublin.

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