American Honda prices; European Bank sells add-on; LeasePlan plans roadshow; inflows rise

By Cristal Cody

Tupelo, Miss., Oct. 10 – Investment-grade supply slowed Thursday in the corporate and sovereign, supranational and agency primary markets.

American Honda Finance Corp. was the sole reported corporate issuer. The company priced $500 million of floating-rate medium-term notes due Feb. 15, 2022.

In SSA volume, the European Bank for Reconstruction and Development priced a $350 million add-on to its global floating-rate notes due Aug. 19, 2022.

Week to date, corporate supply totals about $9 billion. SSA issuers have priced more than $17 billion of notes this week, including a $7 billion three-part deal from Italy on Wednesday.

Corporate supply is expected to remain light over October as issuers enter earnings blackout reporting periods, sources said.

The major U.S. banks will start to release third quarter earnings reports in the week ahead.

A corporate bond offering is on the horizon from LeasePlan Corp. NV, which plans to hold a roadshow in the upcoming week for a dollar-denominated issue.

Lipper US Fund Flows reported corporate investment-grade funds inflows rose to $1.84 billion for the past week ended Wednesday from $733 million in the previous week.

Credit spreads continued to improve on Thursday. The Markit CDX North American Investment Grade 33 index closed the day more than 1 basis point tighter at a spread of 60 bps.

Elsewhere, new issues were trading mostly tighter in the secondary market, a source said.

The Bank of Nova Scotia’s $1 billion of 2% senior bail-inable notes due Nov. 15, 2022 (A2/A-/AA-) improved 3 bps after the notes priced Wednesday.

Scotiabank sold the notes at a spread of 60 bps over Treasuries.

Initial price talk was in the 75 bps spread area.

Honda Finance sells $500 million

American Honda Finance (A2/A/) priced $500 million of floating-rate medium-term notes due Feb. 15, 2022 (A2/A/) at par to yield Libor plus 45 bps on Thursday, according to an FWP filing with the Securities and Exchange Commission.

The interest rate will reset on Nov. 15 and on each interest payment date.

Mizuho Securities USA LLC and SG Americas Securities, LLC were the bookrunners.

American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.

European Bank taps floaters

The European Bank for Reconstruction and Development (Aaa/AAA/AAA) priced a $350 million add-on to its global floating-rate notes due Aug. 19, 2022 on Thursday at SOFR plus 26 bps, according to a market source.

Initial price talk was at the SOFR plus 26 bps area.

Morgan Stanley & Co. LLC and TD Securities (USA) LLC were the bookrunners.

EBRD first priced $600 million of the notes on Aug. 21 at par to yield SOFR plus 26 bps. The bank issued a $50 million reopening on Sept. 26 at 100.001. The total outstanding is now $1 billion.

The financial institution is based in London.

LeasePlan roadshows deal

LeasePlan Corp. NV (Baa1/BBB-/BBB+/) will kick off a global roadshow on Monday for a dollar-denominated 144A- and Regulation S-eligible offering of five-year notes, according to a market source.

The roadshow starts Monday in London and continues from Tuesday through Oct. 17 in the United States.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Bank plc and J.P. Morgan Securities LLC are the arrangers. LeasePlan is an Amsterdam, Netherlands-based automobile leasing company.

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