Toyota Motor Credit, Bank of Montreal tap primary market; supply thins; Dollar Tree steady

By Cristal Cody

Tupelo, Miss., April 10 – Toyota Motor Credit Corp. and Bank of Montreal tapped the high-grade primary market on Tuesday.

Toyota Motor Credit sold $2.25 billion of medium-term notes in three tranches.

Bank of Montreal brought a $2.25 two-part offering of three-year senior medium-term notes.

Deal volume is expected to stay light over the week as earnings season gets underway. Syndicate sources forecast about $10 billion to as much as $17 billion of supply.

On Friday, Citigroup Inc., Wells Fargo & Co. and JPMorgan Chase & Co. release first quarter profit results.

Volume week to date totals more than $6.5 billion.

Coming up, new issues are expected to follow roadshows being held by Syngenta AG and Ausgrid Finance Pty Ltd.

Syngenta (Ba2/BBB-/BBB) started its roadshow on Monday for a benchmark-sized dollar-denominated multi-tranche senior note offering and a euro-denominated fixed-rate senior note issue.

Ausgrid Finance kicked off a roadshow on Friday for a benchmark-sized note offering of five-year and/or 10-year senior notes.

The Markit CDX North American Investment Grade 30 index firmed more than 1 basis point to close at a spread of 63 bps.

In the secondary market, Dollar Tree Inc.’s senior notes (Baa3/BBB-/) priced on Thursday were flat on the day but remain tighter than issuance.

Toyota sells three tranches

Toyota Motor Credit priced $2.25 billion of medium-term notes (Aa3/AA-/A) in three tranches on Tuesday, according to FWP filings with the Securities and Exchange Commission.

The company sold $750 million of three-year floaters at par to yield Libor plus 28 bps.

Toyota priced $250 million of 2.95% three-year fixed-rate notes at 99.96 to yield 2.964%, or a spread of Treasuries plus 52 bps.

The company sold $500 million of 3.40% seven-year notes at 99.759 to yield 3.439%. The notes priced with a spread of 70 bps over Treasuries.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC and TD Securities (USA) LLC were the bookrunners.

Toyota Motor Credit is a Torrance, Calif.-based financing arm and subsidiary of Toyota Motor Corp.

BMO prices $2.25 billion

Bank of Montreal (A1/A+/AA-) priced a $2.25 two-part offering of three-year senior medium-term notes on Tuesday, according to an FWP filing with the SEC.

The $750 million tranche of three-year floating-rate notes priced at par to yield Libor plus 46 bps.

The bank sold $1.5 billion of 3.10% three-year fixed-rate notes at 99.883 to yield 3.141%, or a spread of 70 bps over Treasuries.

BMO Capital Markets Corp., Morgan Stanley & Co. LLC, Citigroup Global Markets, J.P. Morgan Securities and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be contributed to the general funds of the bank and used for general corporate purposes.

Bank of Montreal is a Montreal-based banking and financial services provider.

Dollar Tree stable

Dollar Tree’s 4% notes due May 15, 2025 traded unchanged on Tuesday at 117 bps bid in the secondary market, a source said.

The company sold $1 billion of the seven-year notes on Thursday at a Treasuries plus 125 bps spread.

Dollar Tree’s 4.2% notes due May 15, 2028 were flat at to 139 bps bid during the session.

The company priced $1.25 billion of the notes on Thursday at a spread of 140 bps over Treasuries.

Dollar Tree is a Chesapeake, Va.-based discount retailer.

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