Morning Commentary: Lear, PNC Bank, Citrix plan deals; Council of Europe launches notes

By Cristal Cody

Tupelo, Miss., Feb. 20 – The investment-grade primary market prepared to see supply on Thursday but at a much lighter pace after the previous two sessions posted more than $29 billion of volume.

Lear Corp. is marketing two tranches of new and reopened senior notes.

The deal includes new 10-year notes that are initially talked to price at the Treasuries plus 215 basis points area. Lear also plans to price an add-on to its 5.25% notes due May 15, 2049 with initial price talk at the Treasuries plus 290 bps to 295 bps area.

Lear sold $325 million of the 5.25% notes on April 29, 2019 at 98.32 to yield 5.363% and a Treasuries plus 240 bps spread.

Also, PNC Bank, NA plans to price two tranches of dollar-denominated subordinated notes due Feb. 24, 2023 during the session.

The deal includes three-year floating-rate notes that will price with the Libor benchmark and three-year fixed-to-floating rate notes that are talked to price at the mid-to-high 40 bps over Treasuries area.

Citrix Systems, Inc. is in the primary market following fixed income investor calls on Wednesday with an offering of 10-year notes that is talked to price at the Treasuries plus 185 bps area.

Meanwhile, the sovereign, supranational and agency primary market is active.

The Council of Europe Development Bank launched $1 billion of senior global notes due Feb. 27, 2025 on Thursday at mid-swaps plus 8 bps, tighter than initial talk at the mid-swaps plus 9 bps area.

In addition, the Federal Home Loan Bank System priced $2 billion of new three-year Global bonds over the morning.

About $25 billion to as much as $40 billion of deal volume was forecast by market sources for the week.

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