BNY Mellon, ERP price; Bank of Japan offers notes; Roper tightens; credit spreads ease

By Cristal Cody

Tupelo, Miss., Aug. 20 – Investment-grade deal volume on Tuesday included $1 billion of three-year senior notes from Bank of New York Mellon Corp.

The session also saw a $600 million offering of notes due 2030 from ERP Operating LP print.

In other deal action, the Development Bank of Japan offered $1.8 billion of five- and 10-year notes.

Otherwise, market activity was fairly quiet over the day as desks thin for late summer vacations, a source said.

Retailer quarterly earnings reports are in focus this week, including from Home Depot Inc. on Tuesday and Lowe’s Cos. Inc. and Target Corp. on Wednesday.

Week to date, corporate issuers have priced more than $8 billion of bonds.

Market sources expect about $10 billion of issuance this week in the high-grade primary market.

Investment-grade companies priced nearly $7 billion of bonds on Monday, led by 3M Co.’s $3.25 billion four-part offering of notes.

The company’s notes (A1/AA-/) traded flat to about 3 basis points tighter in the secondary market, a source said.

3M’s $1 billion of 2.375% notes due Aug. 26, 2029 were wrapped around issuance. The notes priced with a Treasuries plus 90 bps spread.

Roper Technologies, Inc.’s $1.2 billion of senior notes (Baa2/BBB+/) priced in two tranches on Monday firmed 4 bps to 5 bps in secondary trading, a source said.

The company’s 2.95% notes due Sept. 15, 2029 tightened 5 bps. Roper priced $700 million of the 10-year notes at a Treasuries plus 137 bps spread.

The Markit CDX North American Investment Grade 32 index eased 3 bps on Tuesday to a spread of 57 bps after tightening 4 bps in the previous session.

BNY Mellon prices $1 billion

Bank of New York Mellon priced $1 billion of 1.95% three-year senior notes (A1/A/AA-) on Tuesday at 99.968 to yield 1.961%, or a spread of Treasuries plus 52 bps, according to an FWP filing with the Securities and Exchange Commission.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and BNY Mellon Capital Markets LLC were the bookrunners.

Bank of New York Mellon is a financial products and services company based in New York.

ERP sells notes due 2030

ERP Operating sold $600 million of 2.5% notes due Feb. 15, 2030 (A3/A-/A) during Tuesday’s session at 99.498 to yield 2.555%, or a spread of 100 bps over Treasuries, according to an FWP filing.

Barclays, BofA Securities, Inc., Citigroup Global Markets, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC were the bookrunners.

The unit of apartment property builder and manager Equity Residential is based in Chicago.

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