Synchrony, McDonald’s print; Yara prepares deal; lighter volume forecast; new bonds mixed

By Cristal Cody

Tupelo, Miss., May 18 – Two corporate issuers tapped the high-grade bond market on Friday.

Synchrony Bank priced $750 million of 3.95% three-year notes at a spread of Treasuries plus 98 basis points.

The notes were seen trading tighter at 97 bps bid, 96 bps offered in aftermarket trading.

Also on Friday, McDonald’s Corp. priced $500 million of three-year senior floating-rate notes at par to yield Libor plus 43 bps.

In addition on Friday, the Federal Home Loan Bank System sold $3 billion of two-year global notes.

Looking ahead, Yara International ASA plans to hold fixed-income investor calls next week for a bond deal.

New bank and financial paper priced over the week was mostly flat to softer in secondary trading.

Royal Bank of Scotland Group plc’s $1.75 billion of 4.892% fixed-to-floating-rate senior notes due May 18, 2029 brought to market on Tuesday eased 3 bps.

Elsewhere, Charles Schwab Corp.’s $1.95 billion of senior notes (A2/A/A) priced Thursday were mixed going out with the floaters about 1 bp softer and the fixed-rate tranches wrapped around issuance on the bid side.

Of the $8 billion of notes priced in six tranches on Monday to fund the merger of Keurig Green Mountain Inc. and Dr Pepper Snapple Group, Inc., the short-dated notes firmed, while the longer maturities softened about 2 bps to 7 bps.

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