IHS Markit brings add-on; World Bank, European Bank price; credit spreads firm; bonds mixed

By Cristal Cody

Tupelo, Miss., Aug. 21 – IHS Markit Ltd. priced a $350 million reopening of its 4.25% senior notes due May 1, 2029 on Wednesday 10 basis points tighter than where the issue first priced in April.

The deal was the only high-grade corporate offering reported in the primary market during the session.

In sovereign, supranational and agency supply, the International Bank for Reconstruction and Development priced $4 billion of fixed-rate notes in two tranches.

Also, the European Bank for Reconstruction and Development sold $600 million of three-year global floating-rate notes.

Week to date, corporate issuers have priced $9.65 billion of bonds, in line with the $10 billion of supply forecast for the week.

Primary action is expected to slow over the rest of August with heavy volume forecast in September, according to market sources.

The Markit CDX North American Investment Grade 32 index firmed 2 bps to end the day at a spread of 55 bps.

New issues priced this week were mixed in the secondary market.

Bank of New York Mellon Corp.’s $1 billion of 1.95% senior notes due Aug. 23, 2022 (A1/A/AA-) priced on Tuesday tightened 4 bps, a source said.

The notes priced at a spread of Treasuries plus 52 bps.

3M Co.’s $3.25 billion four-part offering of notes (A1/AA-/) sold on Monday were mixed, but traded about 1 bp to 3 bps tighter than issuance, a source said.

The company’s 2.375% notes due Aug. 26, 2029 traded about 1 bp better. The $1 billion tranche of notes priced with a Treasuries plus 90 bps spread.

IHS reopens 2029 notes

IHS Markit priced a $350 million reopening of its 4.25% senior notes due May 1, 2029 on Wednesday at 108.036 to yield 3.254%, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes (Ba1/BBB-/BBB) priced with a spread of Treasuries plus 170 bps.

Initial price talk was in the Treasuries plus 185 bps to 190 bps area.

HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BBVA Securities Inc. and TD Securities (USA) LLC were the bookrunners.

The company first sold $600 million of the bonds on April 3 at 99.422 to yield 4.321%, or a Treasuries plus 180 bps spread. The total outstanding is $950 million.

IHS Markit is a London-based business information and analytics company.

World Bank prices $4 billion

The International Bank for Reconstruction and Development, or World Bank, priced $4 billion of fixed-rate notes (Aaa/AAA/AAA) in two tranches on Wednesday, according to a market source.

World Bank sold $3.5 billion of 1.5% notes due Aug. 24, 2024 on top of talk at a spread of mid-swaps plus 13 bps.

A $500 million tranche of notes due Aug. 28, 2024 priced with a 2.2% coupon. Additional pricing terms were not immediately available.

J.P. Morgan Securities plc, Barclays, Morgan Stanley & Co. International Plc and TD Securities were the bookrunners on the 1.5% notes.

TD Securities was the bookrunner on the 2.2% notes.

The global development financing cooperative is based in Washington, D.C.

European Bank sells floaters

The European Bank for Reconstruction and Development (Aaa/AAA/AAA) priced $600 million of global floating-rate notes due Aug. 19, 2022 on top of guidance at the Secured Overnight Financing Rate plus 26 bps on Wednesday, according to a market source.

BMO Capital Markets Corp., Nomura Securities International, plc and Wells Fargo Securities were the bookrunners.

The financial institution is based in London.

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