Amazon.com, MUFG price tighter than guidance; Bayport, Viterra, TD print on top of talk

By Cristal Cody

Tupelo, Miss., April 14 – Investment-grade bond supply came in front-loaded over the short holiday week with a chunk of the pre-Easter deals printing on top of talk.

Issuance totaling more than $17 billion over the first three sessions was anchored by Amazon.com Inc.’s $12.75 billion seven-tranche offering of notes (A1/AA/AA-) on Monday that came tighter than talk.

Amazon.com’s deal saw overall orders hit nearly $24 billion, and the notes priced about 20 basis points to 25 bps better than initial talk, a source said.

Two other issuers during the week also saw their deals print stronger than talk.

Mitsubishi UFJ Financial Group Inc.’s $2 billion three-part offering of notes (A1/A-/A-) on Monday came about 12.5 bps to 15 bps tighter than the tight side of talk.

John Deere Capital Corp.’s $600 million of 3.35% notes due 2029 (A2/A/A) that priced on Tuesday at Treasuries plus 65 bps printed 20 bps better than talk in the Treasuries plus 85 bps area.

Other deals sold during the week mostly came in line with initial guidance, according to market sources.

Bayport Polymers LLC’s $650 million two-part offering of notes (Baa1/A-) on Monday priced on top of talk.

The company sold $350 million of 4.743% notes due 2027 at a 195 bps spread over Treasuries and $300 million of 5.14% notes due 2032 at a Treasuries plus 235 bps spread.

Ferguson Finance plc brought $1 billion of notes (Baa2/BBB+) to the primary market on Tuesday with the seven-year tranche printing on top of talk and the 10-year tranche pricing 10 bps better than guidance.

Ferguson sold $300 million of 4.25% notes due 2027 at a spread of Treasuries plus 165 bps.

The company’s $700 million tranche of 4.65% notes due 2032 came at a 200 bps over Treasuries spread, versus initial talk in the Treasuries plus 210 bps area.

Also on Tuesday, RiverNorth Opportunities Fund Inc. priced an $85 million offering of 6% $25-par perpetual preferred shares (A1) on top of talk in the 6% area.

In thin supply on Wednesday, Viterra Finance BV sold a $750 million two-part offering of notes (BBB-/BBB-) on top of talk in both tranches.

The company priced $450 million of 4.9% notes due 2027 at a Treasuries plus 235 bps spread and $300 million of 5.25% notes due 2032 at a spread of 265 bps over Treasuries.

TD prints on top of talk

One of the week’s three bond deals in the sovereign, supranational and agency markets also priced on top of guidance.

Toronto-Dominion Bank’s $2 billion sale of 3.301% notes due 2027 (Aaa//DBRS: AAA) on Monday came on top of talk at SOFR mid-swaps plus 70 bps.

Two other deals in the SSA space this week came better than initial talk, sources said.

Omers Finance Trust’s $1.1 billion two-part offering of notes (Aa1/AAA) on Monday printed in the middle of talk on the 10-year tranche and better than guidance on the 30-year bond.

Omers sold $600 million of 3.5% notes due 2032 at a Treasuries plus 75 bps spread. Talk was in the Treasuries plus 70 bps to 80 bps area.

The trust’s $500 million tranche of 4% notes due 2052 came at a spread of 125 bps over Treasuries, compared to talk in the 137.5 bps spread area.

On Wednesday, Inter-American Investment Corp. priced its $1 billion offering of 2.625% sustainability notes due 2025 (Aa1/AA/AAA) 3 bps tighter than talk and 2 bps better than guidance at SOFR mid-swaps plus 32 bps.

IDB Invest’s deal attracted orders totaling over $1.7 billion.

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