Mattel prices tight, joins Ryder System in primary market; Ryder notes tighten; Mattel firms

By Cristal Cody and Aleesia Forni

Virginia Beach, May 1 - Mattel Inc. and Ryder System Inc. made their way to the high-grade primary market on Thursday during what is expected to be the last active primary session for the week.

Mattel came to market with a $500 million issue of 2.35% notes due 2019 priced with a spread of Treasuries plus 72 basis points.

The notes sold at the tight end of the Treasuries plus 75 bps area talk, which had tightened around 10 bps from original guidance.

Also on Thursday, Ryder System sold a $400 million offering of 2.45% five-year medium-term notes at Treasuries plus 85 bps.

Pricing was tight of original guidance set in the high-90 bps area.

The session also saw Union Bank NA price an offering of five-year notes, though full details were not available at press time.

Activity was measured during the first session of the new month, though the day's new deals bring the week's total issuance to more than $18 billion.

This figure falls in line with earlier predictions of a $15 billion to $20 billion week.

Looking to Friday's session, issuers are expected to stay on the sidelines as the market focuses on the release of April's payroll data.

The Markit CDX North American Investment Grade series 22 index was flat at a spread of 64 bps.

"The demand for corporates is slightly down versus the average day," a source said. "Everyone's sitting on their hands waiting for non-farm payrolls tomorrow. Hopefully, they will be very good non-farm payroll numbers."

The Labor Department will release the April jobs report on Friday. Market analysts forecast that 215,000 jobs were added over the month.

The new 2.45% notes due 2019 that Ryder System priced traded about 5 bps tighter in the secondary market, a trader said.

Mattel's notes due 2019 tightened 2 bps in aftermarket trading, according to a trader.

Union Bank's five-year notes priced late in the day and were not seen in secondary trading, a trader said.

"It just priced at 65 bps, the whisper number was mid-70s," the trader said.

Mattel prices tight

Mattel sold $500 million of 2.35% five-year notes (Baa1/BBB+/) on Thursday with a spread of Treasuries plus 72 bps, according to an informed source and an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.925 to yield 2.366%.

The notes sold at the tight end of talk.

Mattel's 2.35% notes due 2019 tightened to 70 bps bid, a trader said.

The bookrunners were BofA Merrill Lynch, Citigroup Global Markets Inc., Wells Fargo Securities LLC and Morgan Stanley & Co. LLC.

Proceeds will be used for general corporate purposes.

The toy maker is based in El Segundo, Calif.

Ryder sells five-years

Ryder System priced $400 million of 2.45% five-year medium-term notes (Baa1/BBB/) on Thursday with a spread of Treasuries plus 85 bps, according to a market source and a 424B3 filed with the SEC.

Pricing was at 99.774 to yield 2.496%.

The notes sold tight of original guidance.

Ryder's 2.45% notes due 2019 firmed to 80 bps bid, according to a trader.

"It's trading at par," the trader said.

Mitsubishi UFJ Securities, RBS Securities Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities were the joint bookrunners.

The transportation and logistics company is based in Miami.

Bank/brokerage CDS flat to higher

Investment-grade bank and brokerage CDS prices were unchanged to higher on the day, according to a market source.

Bank of America Corp.'s CDS costs eased 1 bp to 66 bps bid, 69 bps offered. Citigroup Inc.'s CDS costs ended unchanged at 69 bps bid, 72 bps offered. JPMorgan Chase & Co.'s CDS costs were flat at 53 bps bid, 56 bps offered. Wells Fargo & Co.'s CDS costs closed unchanged at 34 bps bid, 37 bps offered.

Merrill Lynch's CDS costs rose 1 bp to 71 bps bid, 75 bps offered. Morgan Stanley's CDS costs were unchanged at 71 bps bid, 74 bps offered. Goldman Sachs Group, Inc.'s CDS costs eased 1 bp to 83 bps bid, 86 bps offered.

Paul Deckelman contributed to this review.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.