Citigroup, Credit Agricole, Morgan Stanley do deals; JPMorgan, Bank of America paper firms

By Aleesia Forni and Cristal Cody

Virginia Beach, June 3 – Citigroup Inc., Credit Agricole SA and Morgan Stanley led a session that saw $5.85 billion of new paper price, pushing the total supply for June’s opening week to more than $16.5 billion.

Citigroup’s new two-tranche offering of notes included a $2.5 billion subordinated tranche due 2025 as well as a $500 million floating-rate note due 2019.

Also on Wednesday, Credit Agricole brought to market a $1.75 billion two-part issue of five-year notes. The fixed-rate tranche sold 15 basis points tight of initial price thoughts.

Morgan Stanley upsized its senior green bond offering to $500 million from initial size thoughts of $300 million.

Singapore’s Flextronics International Ltd. attracted an order book that was more than 4.5 times oversubscribed for its new upsized $600 million offering of senior notes.

The issue sold around 31 bps tight of the mid-point of initial guidance.

Also on Wednesday, Fannie Mae and Pershing Square Holdings, Ltd. each announced plans to bring new deals to the primary market.

Investment-grade bonds were mixed, while credit spreads widened on Wednesday, market sources said.

The Markit CDX North American Investment Grade series 23 index eased 1 bp to a spread of 65 bps.

Morgan Stanley’s existing 2.65% notes due 2020 traded 1 bp better.

JPMorgan Chase & Co.’s 3.125% notes due 2025 tightened 4 bps over the day.

Bank of America Corp.’s 4% notes due 2025 traded about 1 bp better.

Citigroup’s 3.3% senior notes due 2025 were unchanged on Wednesday.

Citi sells $3 billion

Citigroup sold a $3 billion offering of notes on Wednesday in two tranches, according to a market source and an FWP filed with the Securities and Exchange Commission.

The bank sold a $500 million floating-rate note (Baa1/A-/A) due Dec. 20, 2019 at par to yield Libor plus 77 bps.

Also priced was $2.5 billion of 4.4% subordinated notes due June 10, 2025 at 99.592 to yield 4.451%, or Treasuries plus 208 bps.

Initial price thoughts were set in the 225 bps area over Treasuries.

Citigroup Global Markets Inc. was the bookrunner for both tranches.

Citigroup is based in New York.

Credit Agricole two-parter

Meantime, Credit Agricole was in Wednesday’s primary with a $1.75 billion two-tranche offering of senior notes (A2/A/A) due 2020 in fixed- and floating-rate tranches, an informed source said.

There was $1.25 billion of 2.75% five-year notes priced at 99.819 to yield 2.789%, or Treasuries plus 110 bps.

Pricing was at the tight end of talk set in the Treasuries plus 115 bps area after having tightened from initial guidance set in the Treasuries plus 125 bps area.

A $500 million five-year floating-rate note priced at par to yield Libor plus 97 bps.

The notes were guided at the Libor equivalent to the five-year fixed-rate notes.

Credit Agricole was the bookrunner for the Rule 144A and Regulation S deal.

The Paris-based retail bank plans to use the proceeds for general corporate purposes.

Morgan Stanley green bond

Morgan Stanley priced an upsized $500 million issue of 2.2% senior green bonds (A3/A-/A) on Wednesday at Treasuries plus 118 bps, according to an informed source and an FWP filed with the SEC.

Pricing was at 99.923 to yield 2.223%.

The issue priced at the tight end of the Treasuries plus 120 bps area guidance, which was tightened from initial talk set in the range of Treasuries plus 125 bps to 130 bps.

Morgan Stanley & Co. LLC was the bookrunner.

Proceeds will be used for the bank’s existing and future renewable energy and energy efficiency projects.

The financial services company is based in New York City.

Flextronics upsizes

Flextronics International priced an upsized $600 million of 4.75% senior notes (Ba1/BBB-/BBB-) on Wednesday via Rule 144A and Regulation S at 99.213, or Treasuries plus 250 bps, a market source said.

The notes priced tight of guidance.

Proceeds will be used for general corporate purposes.

The bookrunners were BofA Merrill Lynch and J.P. Morgan Securities LLC.

Flextronics is a Singapore-based electronics manufacturing services provider.

Fannie Mae on deck

Fannie Mae announced plans to price an offering of Benchmark Notes due July 20, 2018, according to a market source and a company press release.

The issue is expected to price on Thursday.

The settlement date is June 8.

Citigroup Global Markets, JPMorgan and Nomura Securities International, Inc. are the joint lead managers. The co-managers include Blaylock Beal Van, LLC, FTN Financial Capital Markets, Goldman Sachs & Co., Mischler Financial Group, and Williams Capital Group LP.

The government-backed mortgage lender is based in Washington, D.C.

Pershing Square taps leads

Pershing Square is planning to sell a benchmark offering of senior notes subject to market conditions, according to a market source and a company press release.

Deutsche Bank Securities Inc. and UBS Securities LLC are managing the sale, which will be done via Rule 144A and Regulation S.

The investment company is based in New York.

Morgan Stanley improves

Morgan Stanley’s 2.65% notes due 2020 traded 1 bp tighter at 94 bps bid, according to a market source.

Morgan Stanley sold $2.5 billion of the notes (Baa2/A-/A) on Jan. 22 at Treasuries plus 130 bps.

The financial services company is based in New York City.

JPMorgan tightens

JPMorgan Chase’s 3.125% notes due 2025 firmed 4 bps to 128 bps bid, according to a market source.

JPMorgan sold $2.5 billion of the notes (A3/A/A+) on Jan. 16 at 145 bps over Treasuries.

The financial services company is based in New York City.

Bank of America firms

Bank of America’s 4% notes due 2025 firmed about 1 bp to 197 bps bid, according to a market source.

Bank of America sold $2.5 billion of the notes (Baa2/A-/A) on Jan. 16 at Treasuries plus 225 bps.

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

Citigroup unchanged

Citigroup’s 3.3% senior notes due 2025 were unchanged at 141 bps bid over the session, according to a market source.

Citigroup sold $1.5 billion of the notes (Baa2/A-/A) on April 22 at Treasuries plus 135 bps.

The investment bank is based in New York.

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