Wells Fargo, Estee Lauder, Discover, GATX tap high-grade primary; credit spreads soften

By Cristal Cody

Tupelo, Miss., Feb. 6 – High-grade primary action on Monday included bond deals in the banking and financial services space as well other sectors.

Wells Fargo & Co. sold $2 billion of five-year senior floating-rate notes.

Estee Lauder Cos. Inc. brought $1.5 billion of senior notes in three tranches to the primary market during the session.

Discover Financial Services priced $1 billion of 10-year split-rated senior notes.

Also, IHS Markit Ltd. sold $500 million of eight-year split-rated senior notes. The London-based business information and analytics company priced the eight-year notes in line with guidance of a 4.75% coupon, according to a market source and a news release.

BofA Merrill Lynch, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC were the bookrunners.

In other new issuance, First Republic Bank priced $400 million of 30-year subordinated notes.

GATX Corp. sold $300 million of 10-year senior notes on Monday.

About $20 billion to $30 billion of deal volume is expected over the week by market sources.

The Markit CDX North American Investment Grade index closed the day about 1 basis point softer at a spread of 65 bps.

Apple Inc.’s three-year fixed- and floating-rate notes (Aa1/AA+/) priced on Thursday were quoted about 1 bp softer earlier in the session.

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