National Australia Bank, Huntington Bancshares, Citizens price; Visa firms; McDonald’s eases

By Aleesia Forni and Cristal Cody

New York, March 9 – The primary’s pace slowed on Wednesday compared to recent sessions, thought investment-grade issuers still managed to sell $4.5 billion of new bonds.

Financials accounted for the bulk of the day’s supply. National Australia Bank, Huntington Bancshares Inc., Council of Europe Development Bank and Citizens Bank NA priced bonds.

Marsh & McLennan Cos., Inc. sold an upsized $350 million offering more than 25 basis points inside initial talk.

The deals entered the market as Treasuries declined during the session, oil prices rebounded and stocks saw gains.

One market source noted that the apparent let-up in the deluge of supply is not a sign of any market weakness and that the slowdown mid-week was “just how it happened.”

Already, the week has seen more than $29.7 billion of new investment-grade paper price, pushing the month of March’s total issuance to more than $66 billion in only seven sessions.

Investment-grade bonds were mixed in secondary trading over the day.

Visa Inc.’s 3.15% senior notes due 2025 traded about 2 bps better on Wednesday.

Anheuser-Busch InBev Finance Inc.’s 3.65% senior notes due 2026 were active but unchanged.

McDonald’s Corp.’s 3.7% notes due 2026 eased about 1 bp during the session.

The Markit CDX North American Investment Grade index ended 2 bps tighter at a spread of 97 bps.

NAB prices tight

National Australia Bank sold $1.4 billion of 2.25% five-year covered bonds (Aaa//AAA) at mid-swaps plus 97 bps on Wednesday, according to a market source.

The notes priced at 99.934 to yield 2.264%, or Treasuries plus 87.8 bps.

The Rule 144A and Regulation S notes sold inside initial talk set in the mid-swaps plus 100 bps area.

National Australia Bank, Citigroup Global Markets Inc., HSBC and TD Securities are the joint bookrunners.

Melbourne-based National Australia Bank is the nation’s largest lender.

Huntington five-year notes

Huntington Bancshares sold $1 billion of 3.15% five-year senior notes (Baa1/BBB/A-) at Treasuries plus 180 bps on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

Pricing was at 99.803 to yield 3.193%.

The notes sold at the tight side of the 185 bps area over Treasuries guidance and tighter than talk set in the range of Treasuries plus 195 bps to 200 bps.

Goldman Sachs & Co., BofA Merrill Lynch, Morgan Stanley & Co. LLC and Huntington Investment Co. are the bookrunners.

Proceeds will be used for general corporate purposes.

Huntington Bancshares is a financial holding company based in Columbus, Ohio.

COE global notes

Council of Europe Development Bank priced $1 billion of 1.625% five-year global notes at mid-swaps 42 bps on Wednesday, according to an FWP filed with the SEC.

The notes (Aa1/AA+/AA+) sold in line with guidance and priced at 99.585 to yield 1.712%, or Treasuries plus 33.35 bps.

Bookrunners are Barclays, Credit Agricole, HSBC Securities and TD Securities.

The financing and development institution for social projects in Europe is based in Paris.

Citizens sells bank notes

Citizens Bank sold $750 million of 2.5% three-year senior bank notes (Baa1/A-/BBB+) on Wednesday at Treasuries plus 145 bps, a market source said.

Pricing was at 99.989 to yield 2.504%.

Guidance was in the area of Treasuries plus 150 bps following talk in the 170 bps area over Treasuries.

Bookrunners were Credit Suisse Securities (USA) LLC, Citigroup, J.P. Morgan Securities LLC and Morgan Stanley.

Proceeds will be used for general corporate purposes.

Marsh upsizes

Marsh & McLennan priced an upsized $350 million offering of 3.3% seven-year senior notes (Baa1/A-) at Treasuries plus 162.5 bps on Wednesday, according to a market source and an FWP filing with the SEC.

Pricing was at 99.888 to yield 3.318%.

The issue was upsized from $300 million and priced at the tight side of guidance set in the Treasuries plus 165 bps area. Initial talk was in the 190 bps area over Treasuries.

Citigroup, Deutsche Bank Securities Inc., Barclays and HSBC Securities are the joint bookrunners.

Proceeds will be used for general corporate purposes.

The professional services firm is based in New York City.

Visa improves

Visa’s 3.15% notes due 2025 firmed about 2 bps to 92 bps bid in the secondary market, a source said.

The company sold $4 billion of the notes (A1/A+) on Dec. 9 at a spread of 97 bps plus Treasuries.

The retail electronic payments network operator is based in San Francisco.

Anheuser-Busch stable

Anheuser-Busch’s 3.65% notes due 2026 were flat on Wednesday at 136 bps bid, a market source said.

The Leuven, Belgium-based brewer sold $11 billion of the notes (A2/A-) on Jan. 13 at a spread of 160 bps over Treasuries.

McDonald’s eases

McDonald’s 3.7% notes due 2026 traded about 1 bp softer at 132 bps bid in secondary trading, a market source said.

The company sold $1.75 billion of the notes (Baa1/BBB+/BBB+) on Dec. 2 at a spread of Treasuries plus 155 bps.

The fast food chain is based in Oak Brook, Ill.

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