KeyBank, Fannie Mae; EBRD price; Renasant markets notes; UDR, Westpac Banking notes improve

By Cristal Cody

Eureka Springs, Ark., Aug. 17 – The corporate bond market saw a $500 million three-year senior note deal from KeyBank NA price on Wednesday.

Also, Fannie Mae brought $3.5 billion of five-year Benchmark Notes, and the European Bank for Reconstruction and Development priced four-year global benchmark notes during the session.

Renasant Corp. announced plans to price an offering of fixed-to-floating-rate subordinated notes due 2026 and 2031.

The Markit CDX North American Investment Grade index ended the day modestly softer at a spread of 71 basis points.

UDR, Inc.’s 2.95% medium-term notes due 2026 that priced on Tuesday traded more than 4 bps better in the secondary market earlier Wednesday.

Westpac Banking Corp.’s 2.7% notes due 2026 tightened 2 bps.

Fannie Mae sells $3.5 billion

Fannie Mae placed $3.5 billion of 1.25% five-year Benchmark Notes on Wednesday at 99.595 to yield 1.334%, according to a news release.

The notes priced with a spread of 17.5 bps over Treasuries.

Citigroup Global Markets Inc., Goldman, Sachs & Co. and Nomura Securities International, Inc. were the lead managers.

The mortgage credit provider is based in Washington, D.C.

EBRD prices $1.25 billion

The European Bank for Reconstruction and Development (Aaa/AAA/AAA) priced $1.25 billion of 1.125% four-year global benchmark notes on Wednesday at mid-swaps plus 11 bps, or Treasuries plus 35.3 bps, according to a market source.

The notes priced in line with guidance.

BMO Capital Markets Corp., Morgan Stanley & Co. LLC and TD Securities (USA) LLC were the lead managers.

EBRD is a London-based financial and investment institution.

KeyBank prices $500 million

KeyBank priced $500 million of 1.6% three-year senior notes at Treasuries plus 75 bps on Wednesday, according to a market source.

The notes priced on the tight side of guidance in the 80 bps area, plus or minus 5 bps.

Goldman Sachs & Co., J.P. Morgan Securities LLC, KeyBank Capital Markets Inc. and Morgan Stanley were the lead managers.

KeyBank is a Cleveland-based regional bank.

Renasant offers two tranches

Renasant intends to price an offering of fixed-to-floating-rate subordinated notes due 2026 and 2031 (Kroll: BBB), according to 424B5 filings with the Securities and Exchange Commission on Wednesday.

Sandler O’Neill + Partners, LP is the lead bookrunner, and Keefe, Bruyette & Woods is the passive bookrunner. The co-manager is Raymond James.

Proceeds will be used for general corporate purposes.

Renasant is the parent company of Tupelo, Miss.-based Renasant Bank.

UDR tightens

UDR’s 2.95% notes due 2026 traded early Wednesday at 133 bps offered in the secondary market, a source said.

The company (Baa1/BBB/) priced $300 million of the notes on Tuesday at par with a spread of 137.5 bps over Treasuries.

UDR is a Denver-based real estate investment trust that owns and operates apartment communities.

Westpac Banking firms

Westpac Banking’s 2.7% notes due 2026 were seen 2 bps tighter in early secondary trading at 110 bps offered, according to a market source.

Westpac Banking sold $1 billion of the notes (Aa2/AA-/AA-) on Aug. 11 at 115 bps over Treasuries.

The Australian bank and financial services provider is based in Sydney.

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