Bank of America, BlackRock, Nationwide Building, Main Street, Ontario price; new issues firm

By Cristal Cody

Tupelo, Miss., April 17 – Deal volume continued at a strong pace on Wednesday in the high-grade primary market with more than $6 billion of bonds priced.

Bank of America Corp. sold $4.5 billion of notes in two tranches on Wednesday, a source said. Final pricing details were not immediately available.

Also during the session, BlackRock Inc. priced $1 billion of 10-year senior notes.

Nationwide Building Society brought $1 billion of four-year notes to the primary market.

Main Street Capital Corp. upsized an offering of five-year notes by $100 million to $250 million.

In addition, the Province of Ontario sold $1.75 billion of three-year bonds.

Volume is expected to thin after Wednesday with the bond markets scheduled to close early at 2 p.m. ET on Thursday and remain closed on Friday for the Good Friday holiday.

Week to date, corporate issuers have priced about $19 billion of high-grade notes, beating market forecasts of about $10 billion to $15 billion of issuance for the week.

Bank and financial issuance remain in the forefront on the heels of earnings releases, source report.

Bank of America reported its profit results on Tuesday.

Citigroup Inc. and JPMorgan Chase & Co. tapped the primary market on Tuesday following its earnings releases.

Morgan Stanley released its first-quarter earnings before the market opened on Wednesday.

In the secondary market, new financial paper improved during the session, according to market sources.

Citigroup Inc.’s $2.75 billion of 3.352% senior notes due April 24, 2025 (A3/BBB+/A) firmed more than 5 basis points on Wednesday after trading about 1 bp better after issuance.

JPMorgan Chase & Co.’s $1.5 billion reopening of 3.964% senior fixed-to-floating rate notes due Jan. 15, 2048 (A2/A-/AA-) on Tuesday firmed about 1 bp after issuance.

The notes priced at a spread of Treasuries plus 115 bps on Tuesday.

Price talk was in the Treasuries plus 120 bps spread area.

The notes convert Nov. 15, 2047 to a floating rate of Libor plus 138 bps.

JPMorgan originally issued $1.75 billion of the notes on Nov. 10, 2017 at a spread of Treasuries plus 115 bps and issued a $250 million add-on to the notes on Dec. 12, 2017. The total outstanding now is $3.5 billion.

In other new issue trading, Walmart Inc.’s 3.25% senior notes due July 8, 2029 priced as part of a $4 billion three-part deal on Tuesday firmed 2 bps.

The Markit CDX North American Investment Grade 32 index closed steady on the day at a spread of 57 bps.

BlackRock prices $1 billion

BlackRock sold $1 billion of 3.25% 10-year senior notes (Aa3/AA-/) on Wednesday at 99.19 to yield 3.346%, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced on top of guidance at a spread of Treasuries plus 75 bps.

Citigroup Global Markets Inc., Barclays, Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. were the bookrunners.

The investment management company is based in New York.

Nationwide Building prints

Nationwide Building Society priced $1 billion of 3.622% notes due April 26, 2023 (Baa1/A/A) on Wednesday at a spread of 155 bps over Treasuries, according to a market source.

Initial price talk was in the Treasuries plus 145 bps to 150 bps area.

Barclays, J.P. Morgan Securities LLC, Morgan Stanley and NatWest Markets plc were the lead managers.

The mutual financial company and building society is based in Swindon, England.

Main Street Capital upsizes

Main Street Capital priced an upsized $250 million of five-year notes (/BBB/) on Wednesday with a coupon of 5.2%, according to a press release and a 497AD filing with the Securities and Exchange Commission.

The deal was upsized from $150 million.

RBC Capital Markets LLC, Goldman Sachs & Co. LLC, Raymond James & Associates Inc. and BB&T Securities, LLC were bookrunners.

The company is a Houston, Texas-based principal investment firm that provides debt and equity capital to middle-market companies.

Ontario prices $1.75 billion

Ontario priced $1.75 billion of 2.55% three-year bonds on Wednesday at 99.88 to yield 2.592%, according to an FWP filing with the Securities and Exchange Commission.

The bonds (Aa2/A+/AA-) priced at a spread of mid-swaps plus 15 bps, or Treasuries plus 22 bps.

The underwriters were Barclays, Citigroup Global Markets Ltd., Goldman Sachs International, TD Securities (USA) LLC, BMO Capital Markets Corp., CIBC World Markets Corp., National Bank of Canada Financial Inc., RBC Capital Markets and Scotia Capital (USA) Inc.

Citigroup tightens

In the secondary market, Citigroup’s 3.352% fixed-to-floating-rate senior notes due April 24, 2025 (A3/BBB+/A) headed out on Wednesday tighter at 89 bps bid, a market source said.

The company sold $2.75 billion of the notes on Tuesday at par to yield a spread of Treasuries plus 95 bps.

Initial price talk was in the Treasuries plus 110 bps area.

The notes will reset April 24, 2024 to a floating rate of Libor plus 89.6 bps.

The financial services company is based in New York.

Walmart improves

Walmart’s 3.25% notes due July 8, 2029 firmed to 65 bps bid in secondary trading, a market source said.

Walmart sold $1.25 billion of the 10-year notes (Aa2/AA/AA) on Tuesday at a Treasuries plus 67 bps spread.

Price guidance was in the Treasuries plus 70 bps area, with initial talk at the Treasuries plus low 80 bps area.

The discount retailer is based in Bentonville, Ark.

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