Royal Bank of Canada, Deutsche Telekom, Reliance Standard price; EQT, Canada market issues

By Cristal Cody

Tupelo, Miss., Jan. 13 – Royal Bank of Canada led investment-grade supply on Monday with a $1.85 billion two-part offering of three-year medium-term senior notes.

Also in the primary market, Deutsche Telekom AG sold $1.25 billion of senior notes due Jan. 21, 2050.

Reliance Standard Life Global Funding II brought $700 million of senior secured notes in two parts.

Meanwhile, EQT Corp. is marketing a two-part registered offering of fixed-rate senior notes with fixed income investor calls held Monday and on Tuesday.

Coming up on Tuesday, Canada plans to tap the dollar-denominated primary market with a registered offering of five-year global notes.

Volume is forecast to stay strong but at a much lighter pace than the same period last week when more than $24 billion of bonds priced on Jan. 6. Corporate volume totaled more than $60 billion for the first full week of 2020.

About $30 billion to $35 billion of high-grade issuance is anticipated this week with bank and financial supply eyed on the heels of fourth quarter earnings releases, according to syndicate sources.

Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. report earnings on Tuesday, followed by Bank of America Corp., BB&T Corp., U.S. Bancorp and Goldman Sachs Group Inc. on Wednesday and SunTrust Banks Inc., Bank of New York Mellon Corp. and Morgan Stanley on Thursday.

Bank and financial paper were quoted trading about 2 basis points to 4 bps tighter on the day in the secondary market, a source said.

The Markit CDX North American Investment Grade 33 index closed mostly unchanged to modestly softer at a spread of 44.5 bps.

RBC prices $1.85 billion

Royal Bank of Canada priced a $1.85 billion two-part offering of medium-term senior notes due Jan. 17, 2023 (A2/A/AA) on Monday, according to a market source and FWP filings with the Securities and Exchange Commission.

An $850 million tranche of three-year floating-rate notes priced at par to yield Libor plus 36 bps.

Royal Bank of Canada sold $1 billion of 1.95% three-year notes at 99.939 to yield 1.971%. The notes priced at a Treasuries plus 38 bps spread, compared to initial talk in the low 50 bps area.

RBC Capital Markets, LLC, BofA Securities, Inc. and J.P. Morgan Securities LLC were the bookrunners.

Royal Bank of Canada is a Toronto-based financial services company.

Deutsche Telekom prints $1.25 billion

Deutsche Telekom priced $1.25 billion of 3.625% senior notes due Jan. 21, 2050 (Baa1/BBB+/) on Monday at a spread of Treasuries plus 137.5 bps, according to a market source.

Initial price talk was in the Treasuries plus 155 bps to 160 bps area.

Citigroup Global Markets Inc. and J.P. Morgan were the bookrunners.

Deutsche Telekom is a Bonn, Germany-based telecommunications company.

Reliance Standard sells notes

Reliance Standard Life Global Funding II priced $700 million of senior secured notes (A2/A+/) in two tranches on Monday, according to a market source.

A $350 million tranche of 2.15% notes due Jan. 21, 2023 priced at a spread of Treasuries plus 58 bps.

Initial price talk on the issue was in the Treasuries plus 80 bps area.

A $350 million tranche of 2.75% notes due Jan. 21, 2027, initially talked to print in in the Treasuries plus 115 bps to 120 bps area, priced at a 103 bps over Treasuries spread.

HSBC Securities (USA) Inc., J.P. Morgan, U.S. Bancorp Investments, Inc. and Wells Fargo Securities LLC were the bookrunners.

The issuer is a financing arm of Philadelphia-based Reliance Standard Life Insurance Co.

EQT markets two-tranche deal

EQT is holding fixed income investor calls on Monday and Tuesday for a registered two-part offering of fixed-rate senior notes (Baa3/BBB/BBB-), according to a market source.

BofA Securities and J.P. Morgan are the bookrunners.

The integrated energy company is based in Pittsburgh.

Canada plans offering

Canada (Aaa/AAA/) plans to price a registered offering of five-year global notes on Tuesday, according to an informed source.

The notes due Jan. 22, 2025 are initially talked to price with a spread in the Treasuries plus 8 bps area.

BNP Paribas Securities Corp., CIBC World Markets Corp., HSBC, RBC Capital Markets, LLC and TD Securities (USA) LLC are the lead managers.

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