Wells Fargo, Steelcase, Mitsui Fudosan price notes; Canada, Dexia Credit eye market

By Cristal Cody

Tupelo, Miss., Jan. 16 – Investment-grade issuers including Wells Fargo & Co., Steelcase Inc. and Mitsui Fudosan Co., Ltd. tapped the primary market on Thursday.

Wells Fargo sold $5.5 billion of medium-term notes in two tranches.

Steelcase priced $450 million of 10-year senior notes.

Mitsui Fudosan raised $300 million in a 10-year note sale.

Week to date, high-grade companies and sovereign, supranational and agency issuers have priced more than $29 billion of bonds, including more than $21 billion of corporate notes.

Coming up in the SSA space on Thursday, Canada plans to price U.S. dollar-denominated three-year global notes.

The deal follows the Province of Alberta’s $1.75 billion of five-year global bonds that priced on Tuesday.

In other primary market action expected on Thursday, Dexia Credit Local SA intends to price a dollar-denominated Rule 144A and Regulation S offering of three-year senior notes.

Strong supply was forecast for the week with market sources estimating $40 billion or more of issuance.

Corporate deal volume so far has been led by Fox Corp.’s $6.8 billion five-part offering of notes priced on Tuesday.

The company’s notes traded about 8 basis points to more than 10 bps tighter in the secondary market, a source said.

A $2 billion tranche of 4.709% notes due Jan. 25, 2029, which priced with a 200 bps over Treasuries spread, tightened to 186 bps in the secondary market, according to the market source.

The Markit CDX North American Investment Grade 31 index closed the day about 1 bp tighter at a spread of 76 bps.

Wells Fargo prices

Wells Fargo sold $5.5 billion of medium-term notes (A2/A-/A+) in two tranches on Wednesday, according to a market source.

Wells Fargo priced $3 billion of 3.75% five-year notes at a spread of 125 bps over Treasuries. The notes were initially talked to print in the Treasuries plus 140 bps area.

A $2.5 billion tranche of 4.15% 10-year notes priced at a spread of Treasuries plus 145 bps, compared to initial talk in the Treasuries plus 160 bps to 165 bps area.

Wells Fargo Securities LLC was the bookrunner.

The financial services company is based in San Francisco.

Steelcase taps market

Steelcase sold $450 million of 5.125% 10-year senior notes (Baa2/BBB) on Wednesday at a spread of 250 bps over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at 99.213 to yield 5.227%.

J.P. Morgan Securities LLC and BofA Merrill Lynch were the bookrunners.

Steelcase is a Grand Rapids, Mich.-based office furniture manufacturer.

Mitsui Fudosan prints

Mitsui Fudosan (A2/A) priced $300 million of 3.95% 10-year notes at a spread of Treasuries plus 125 bps on Thursday, according to a market source.

The notes were initially talked to price in the Treasuries plus 140 bps area.

BofA Merrill Lynch, Citigroup Global Markets Inc., Nomura International plc and SMBC Nikko Securities America, Inc. were the lead managers.

Mitsui Fudosan is a real estate development company based in Tokyo.

Canada offers bonds

Canada (Aaa/AAA) plans to sell U.S. dollar-denominated three-year global notes on Thursday, according to a market source.

The notes due Jan. 25, 2022 were initially talked to price with a spread in the Treasuries plus 12 bps area.

BofA Merrill Lynch, BMO Capital Markets Corp., Citigroup Global Markets Ltd., National Bank Financial Inc. and RBC Capital Markets, LLC are the lead managers.

Canada’s Department of Finance announced in a news release on Wednesday the government plans to price a bond offering this week.

Proceeds from the deal will be used to supplement and diversify Canada’s foreign exchange reserves.

Dexia in pipeline

Dexia Credit Local (Aa3/AA/BBB+) plans to price a dollar-denominated Rule 144A and Regulation S offering of senior notes due Jan. 29, 2022 on Thursday, according to a market source.

Initial price talk is in the mid-swaps plus 25 bps area.

Citigroup, Credit Agricole CIB, Goldman Sachs & Co. LLC and HSBC Securities (USA) Inc. are the bookrunners.

Dexia Credit Local is a Brussels, Belgium-based regional bank focused on sustainable development.

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