Supply thins; Spirit AeroSystems, U.S. Bank tap primary; Yara continues investor calls

By Cristal Cody

Tupelo, Miss., May 22 – Two issuers tapped the investment-grade primary market on Tuesday with market sources questioning whether much more supply will come ahead of the long holiday weekend.

Spirit AeroSystems, Inc. priced a $1.3 billion three-tranche offering of senior notes, while U.S. Bank NA sold $1 billion of notes in two parts.

On Monday, Unum Group sold $300 million of $25-par 40-year junior subordinated notes, and the Bank of N.T. Butterfield & Son Ltd. priced $75 million of 10-year fixed-to-floating rate subordinated notes.

About $25 billion of volume was forecasted for the week. The bond markets will close early Friday ahead of the Memorial Day holiday weekend and will remain closed on Monday.

Several deals are in the pipeline, while other issuers are marketing bonds.

On Tuesday, Yara International ASA wrapped a two-day round of fixed-income investor calls via Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Societe Generale CIB.

The company plans to price dollar-denominated senior notes in a Rule 144A and Regulation S deal.

Also, ASB Bank Ltd. is continuing a roadshow for a Rule 144A and Regulation S dollar-denominated offering of five-year notes in the U.S. market through Thursday. The roadshow began on May 14 in Asia.

Citigroup Global Markets and J.P. Morgan Securities are the arrangers.

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