Nederlandse Waterschapsbank, RBC price notes; Broadcom firms; General Motors Financial mixed

By Cristal Cody

Eureka Springs, Ark., Jan. 13 – Nederlandse Waterschapsbank NV priced $1.5 billion of two-year notes in the high-grade bond market on Friday in front of a long U.S. holiday weekend.

Also, Royal Bank of Canada returned to the primary market on Friday to sell $50 million of series G two-year senior global medium-term floating-rate notes following an $850 million offering of the issue on Thursday.

Bank and financial issuers are expected to dominate supply in the week following the Martin Luther King Jr. holiday on Monday, according to a market source.

About $20 billion to $30 billion of total issuance is forecast, a source said.

On Friday, Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. released fourth-quarter earnings. Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley are set to release earnings in the week ahead.

The Markit CDX North American Investment Grade index closed steady at a spread of 66 basis points.

In the secondary market, Broadcom Ltd.’s $13.55 billion four-part offering of senior notes (Baa2/BBB-/BBB-) traded about 5 bps tighter than issuance.

General Motors Financial Co. Inc.’s $2.5 billion three-tranche offering of senior notes (Ba1/BBB-/BBB-) brought to market mid-week were mixed in secondary trading on Friday.

NWB sells $1.5 billion

Nederlandse Waterschapsbank priced $1.5 billion of 1.5% notes due Jan. 23, 2019 (Aaa/AAA/) at a spread of Treasuries plus 44 bps on Friday, according to a market source.

The bookrunners were BMO Capital Markets Corp. and TD Securities (USA) LLC.

The local government funding agency is based in the Hague, the Netherlands.

RBC sells $900 million

Royal Bank of Canada priced $900 million of two-year senior global medium-term floating-rate notes at par to yield Libor plus 45 bps in two deals, according to a 424B2 filing on Friday with the Securities and Exchange Commission.

The bank sold $850 million of the series G notes due Jan. 10, 2019 on Thursday and $50 million of the notes on Friday.

RBC Capital Markets, LLC was the bookrunner.

RBC is a Toronto-based financial services company.

Broadcom firms

In the secondary market on Friday, Broadcom’s 3% notes due 2022 traded at 115 bps bid, 113 bps offered, a source said.

Broadcom priced $3.5 billion of the five-year notes through subsidiaries Broadcom Corp. and Broadcom Cayman Finance Ltd. on Wednesday at 120 bps over Treasuries.

The company’s 3.875% notes due 2027 were quoted at 150 bps bid, 147 bps offered during the Friday session.

The $4.8 billion tranche priced on Wednesday at Treasuries plus 155 bps.

Broadcom is an Irvine, Calif., maker of chips for broadcasting.

General Motors mixed

General Motors Financial’s 3.45% notes due 2022 were softer than issuance on Friday at 161 bps bid, 159 bps offered in the secondary market, a source said.

The company sold $1.25 billion of the five-year notes on Wednesday at a spread of Treasuries plus 160 bps.

General Motors Financial’s 4.35% notes due 2027, priced on Wednesday in a $750 million tranche at Treasuries plus 200 bps, improved to 198 bps bid, 196 bps offered.

General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.

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