High-grade primary action thins; Protective Life, American Airlines, French bank price

By Cristal Cody

Tupelo, Miss., Sept. 20 – Three reported high-grade issuers tapped the primary market on Wednesday in a mostly quiet session with the focus on the Federal Reserve’s monetary policy statement.

The Federal Reserve left rates unchanged.

In new issuance, Protective Life Global Funding sold $450 million of three-year senior notes in an offering upsized from $300 million.

French bank Banque Federative du Credit Mutuel priced $250 million of 18-month fixed-rate notes.

American Airlines, Inc. sold $193.44 million of pass-through certificates.

The Markit CDX North American Investment Grade index rolled to a new 29 series on Wednesday. The index softened about 4 basis points to a spread of 59 bps.

The three-month Libor yield was up 1 bp at 1.33% during the session.

Protective Life prints

Protective Life Global Funding sold $450 million of 2.161% three-year senior notes at a spread of Treasuries plus 63 bps on Wednesday, a source said.

The notes (A2/AA-/) were talked to price in the Treasuries plus 65 bps area.

BofA Merrill Lynch, Deutsche Bank Securities Inc. and U.S. Bancorp Investments Inc. were the bookrunners.

Protective Life Global Funding is a Charlotte, N.C.-based debt financing vehicle for Protective Life Insurance Co.

French bank in primary

Banque Federative du Credit Mutuel sold $250 million of 1.9% notes due March 28, 2019 (Aa3/A/A+) at par, according to a market source.

Wells Fargo Securities LLC was the bookrunner.

The bank and financial services company is based in Strasbourg, France.

American Airlines prices

American Airlines priced a $193.44 million offering of 3.75% series 2016-3B pass-through certificates (Baa3/BBB/) at a spread of Treasuries plus 192.4 bps, according to a market source.

The certificates tightened from initial price thoughts in the 3.875% area.

The certificates have a final expected distribution date of Oct. 15, 2025 and a legal distribution date of April 15, 2027.

Credit Suisse Securities (USA) LLC was the bookrunner.

Proceeds will be used to acquire the company’s series B equipment notes, which will be issued to finance the purchase of 25 aircraft.

The commercial airline and subsidiary of AMR Corp. is based in Fort Worth.

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