Adobe, Citi, TD Bank, Couche-Tard, National Rural price; European Investment Bank sells notes

By Cristal Cody

Tupelo, Miss., Jan. 22 – Investment-grade supply on Wednesday included a $3.15 billion four-tranche bond deal from Adobe Inc.

During the session, bank supply also continued with deals from Citigroup Inc. and Toronto-Dominion Bank.

Citigroup sold $2.25 billion of fixed-to-floating-rate senior notes due Jan. 29, 2031.

Toronto-Dominion Bank priced $1 billion of three-year floating-rate senior medium-term notes.

Also on Wednesday, Alimentation Couche-Tard Inc. placed a $1.5 billion two-part Rule 144A and Regulation S offering of senior notes better than guidance.

National Rural Utilities Cooperative Finance Corp. priced an upsized $1 billion of senior notes and collateral trust bonds on Wednesday.

In other issuance, the European Investment Bank sold $1 billion of three-year floating-rate notes.

Week to date, more than $14 billion of investment-grade bonds have priced.

About $20 billion to $25 billion of issuance is expected for the holiday-shortened week after the markets were closed Monday for Martin Luther King Day.

On Tuesday, issuers included Bank of New York Mellon Corp., Canadian Imperial Bank of Commerce, Nationwide Building Society, State Street Corp., Target Corp. and Waste Connections, Inc.

In the secondary market, the new issues priced Tuesday traded about 1 bp to 3 bps tighter, a source said.

Canadian Imperial Bank of Commerce’s $1 billion of 2.25% senior notes due Jan. 28, 2025 (A2/BBB+/AA-) priced at a spread of Treasuries plus 68 basis points tightened about 2 bps in secondary trading.

Initial price talk was in the Treasuries plus low 80 bps spread area.

The Markit CDX North American Investment Grade 33 index firmed modestly to end Wednesday at a spread of 45.07 bps.

Adobe prices $3.15 billion

Adobe priced $3.15 billion of fixed-rate notes (A2/A/) in four tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

A $500 million tranche of 1.7% three-year notes priced at 99.863 to yield 1.747% and a spread of 22 bps over Treasuries.

Initial talk was in the Treasuries plus 50 bps area.

Adobe sold $500 million of 1.9% five-year notes with a Treasuries plus 37 bps spread, compared to initial talk in the 60 bps spread area. The notes priced at 99.787 to yield 1.945%.

The company priced $850 million of 2.15% seven-year notes at 99.935 to yield 2.16% and a spread of 47 bps over Treasuries. The issue was initially talked to print with a spread in the 70 bps over Treasuries area.

In the final tranche, $1.3 billion of 2.3% 10-year notes priced at a Treasuries plus 57 bps spread. Initial guidance was in the 80 bps over Treasuries area. The notes priced at 99.699 to yield 2.334%.

BofA Securities, Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.

Adobe is a San Jose, Calif., computer software and services provider for businesses.

Citigroup raises $2.25 billion

Citigroup sold $2.25 billion of 2.666% fixed-to-floating-rate senior notes due Jan. 29, 2031 (A3/BBB+/A) at a spread of Treasuries plus 90 bps on Wednesday, according to a market source.

Initial price talk was in the Treasuries plus 105 bps area.

The fixed rate will convert to a floating rate of SOFR plus 114.6 bps in January 2030.

Citigroup Global Markets Inc. was the bookrunner.

The New York-based financial services company plans to use the proceeds for general corporate purposes.

Alimentation Couche-Tard prints

Alimentation Couche-Tard priced a $1.5 billion two-tranche Rule 144A and Regulation S offering of senior notes (Baa2/BBB/) tighter than guidance on Wednesday, according to a market source and a press release.

A $750 million tranche of 2.95% notes due Jan. 25, 2030 priced with a spread of Treasuries plus 120 bps.

The notes priced better than guidance in the Treasuries plus 130 bps area, plus or minus 5 bps.

Alimentation Couche-Tard sold $750 million of 3.8% bonds due Jan. 25, 2050 at a Treasuries plus 160 bps spread.

Price guidance was in the 170 bps over Treasuries area, plus or minus 5 bps.

HSBC Securities (USA) Inc., RBC Capital Markets, LLC and Wells Fargo were the active bookrunners. Passives were J.P. Morgan, MUFG and National Bank Financial Inc.

The notes are guaranteed by certain wholly-owned subsidiaries that are guarantors under Couche-Tard’s senior credit facilities.

Alimentation Couche-Tard is a Quebec-based convenience store operator.

National Rural Utilities upsizes

National Rural Utilities Cooperative Finance priced an upsized $1 billion of bonds in two tranches on Wednesday, according to a market source and FWP filings.

The company sold $500 million of 1.75% two-year medium-term senior notes (A2/A/A) at 99.912 to yield 1.796% and a spread of Treasuries plus 27 bps.

The issue was upsized from $300 million and priced tighter than initial talk in the 40 bps over Treasuries area.

An upsized $500 million tranche of 2.4% 10-year collateral trust bonds (A1/A/A+) priced at 99.562 to yield 2.449%. The bonds came with a Treasuries plus 68 bps spread, compared to talk in the 80 bps to 85 bps spread area.

The tranche was upsized from $350 million.

PNC Capital Markets LLC and U.S. Bancorp were the bookrunners on the two-year notes.

MUFG, RBC Capital Markets, Scotia Capital (USA) Inc. and U.S. Bancorp were the bookrunners on the 10-year tranche.

The market lender for electric cooperatives is based in Herndon, Va.

TD Bank brings $1 billion

Toronto-Dominion Bank priced $1 billion of floating-rate senior medium-term notes due Jan. 27, 2023 (Aa3/AA-/AA-) at SOFR plus 48 bps on Wednesday, according to a market source.

Initial talk was in the SOFR plus low 60 bps area.

Bookrunners were TD Securities (USA) LLC, J.P. Morgan, BNP Paribas Securities Corp. and Deutsche Bank Securities Inc.

The bank and financial services company is based in Toronto.

European Investment Bank sells $1 billion

The European Investment Bank (Aaa/AAA/AAA) priced a $1 billion offering of floating-rate notes due Jan. 30, 2023 on Wednesday at SOFR plus 25 bps, according to a market source.

Initial price talk was in the SOFR plus 27 bps area.

BofA Securities, CIBC World Markets Corp., Citigroup, RBC Capital Markets and TD Securities were the bookrunners for the Rule 144A and Regulation S transaction.

The lender for the European Union is based in Kirchberg, Luxembourg.

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