CIBC, Smithfield, Freddie Mac price notes; Belgium upsizes deal; EBRD sells green bonds

By Cristal Cody

Tupelo, Miss., Sept. 28 – Canadian Imperial Bank of Commerce tapped the U.S. primary market on Thursday with a $1.75 billion dollar-denominated offering of three-year fixed- and floating-rate notes.

Also in corporate supply, Smithfield Foods, Inc. priced $400 million of split-rated four-year notes.

In other issuance, Freddie Mac sold $2.5 billion of three-year reference notes.

Belgium placed an upsized $1.5 billion offering of long two-year notes.

Also, the European Bank for Reconstruction and Development priced a $500 million offering of green bonds.

The Markit CDX North American Investment Grade 29 index firmed about 1 basis point on Thursday to close at a spread of 56.8 bps.

CIBC prices $1.75 billion

Canadian Imperial Bank of Commerce priced $1.75 billion of three-year senior notes (A1/A+/AA-) in two tranches on Thursday, a source said.

The bank sold $500 million of floating-rate notes due Oct. 5, 2020 at Libor plus 31 bps.

The $1.25 billion tranche of 2% three-year fixed-rate notes priced with a spread of Treasuries plus 55 bps.

BofA Merrill Lynch, Barclays, BNP Paribas Securities Corp., CIBC World Markets Corp. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be added to the bank’s funds and used for general corporate purposes, according to a supplemental filing with the Securities and Exchange Commission.

The diversified financial institution is based in Toronto.

Smithfield Foods in primary

Smithfield Foods priced $400 million of 2.65% split-rated senior notes due Oct. 3, 2021 (Ba2/BBB-/BBB) in a Rule 144A and Regulation S offering on Thursday, according to a market source and company release.

The notes priced at a spread of Treasuries plus 115 bps, tighter than guidance in the Treasuries plus 120 bps area, plus or minus 2 bps.

BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.

The notes initially will be guaranteed on a senior unsecured basis by each of the company’s subsidiaries that is a borrower or a guarantor under its senior credit facility and, in the future, by each of its domestic subsidiaries that is a borrower under or guarantees obligations under certain material debt facilities or debt securities of the company or any guarantor.

Smithfield Foods intends to use the proceeds to repay existing debt under its senior credit facility and securitization facility and for general corporate purposes.

The meat processing company is based in Smithfield, Va.

Freddie Mac sells $2.5 billion

Freddie Mac priced $2.5 billion of 1.625% three-year reference notes at 99.819 to yield 1.687% on Thursday, according to a news release.

The notes due Sept. 29, 2020 priced 9 bps more than the yield on the three-year U.S. Treasury note, the release said.

Morgan Stanley, Wells Fargo Securities and TD Securities (USA) LLC were the lead dealers.

The government-backed mortgage lender is based in McLean, Va.

Belgium upsizes

Belgium (Aa3/AA/AA) sold $1.5 billion of 1.625% notes due Jan. 15, 2020 on Thursday at a spread of Treasuries plus 24.8 bps, according to a market source.

The Rule 144A and Regulation S deal was upsized from an initial $1 billion offering.

Barclays, Citigroup Global Markets Ltd., HSBC Bank plc and Scotiabank Europe plc were the dealers.

EBRD sells bonds

The European Bank for Reconstruction and Development (Aaa/AAA/AAA) priced a $500 million offering of 1.875% global green bonds due July 15, 2021 on Thursday at mid-swaps plus 3 bps, or a spread of Treasuries plus 33.2 bps, according to a market source.

The bonds were initially talked to price in the mid-swaps plus 4 bps area.

Barclays, Citigroup Global Markets and Credit Agricole CIB were the lead managers.

The financial institution is based in London.

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