Bank of New York Mellon, Jackson National among issuers; bonds mixed; credit spreads soften

By Cristal Cody

Eureka Springs, Ark., April 25 – Investment-grade pricing action on Monday included three deals totaling nearly $4 billion.

Bank of New York Mellon Corp. sold $2 billion of five- and 10-year senior medium-term notes.

Jackson National Life Global Funding priced a $1.1 billion two-part offering of senior notes (A1/A) during the session.

Also, Ascension Health Alliance sold $700 million of 30-year bonds.

The Market CDX North American Investment Grade series 23 index eased 2 basis points over the session to close at a spread of 75 bps.

Earlier in the day, U.S. Bancorp’s 3.1% subordinated medium-term notes due 2026 traded about 3 bps better than issuance.

Credit Suisse Group Funding (Guernsey) Ltd.’s senior notes due 2026 softened 2 bps.

BNY Mellon sells $2 billion

Bank of New York Mellon. sold $2 billion of series I senior medium-term notes in two tranches on Monday, according to FWP filings with the Securities and Exchange Commission.

The bank priced $1.25 billion of 2.05% five-year notes with a spread of 70 bps over Treasuries. The notes priced at 99.953 to yield 2.06%.

The $750 million tranche of 2.8% 10-year notes priced at 95 bps over Treasuries. The notes were sold at 99.645 to yield 2.841%.

Citigroup Global Markets Inc., Lloyds Securities Inc., BofA Merrill Lynch, UBS Securities LLC and BNY Mellon Capital Markets, LLC were the bookrunners for the deal.

New York-based Bank of New York Mellon provides financial products and services.

Jackson National prices

Jackson National Life Global Funding priced $1.1 billion of senior notes (A1/A) in two tranches on Monday, according to a market source.

The company sold $500 million of 2.25% notes due April 29, 2021 at a spread of Treasuries plus 90 bps, on the tight side of guidance of 90 bps to 95 bps.

The company priced $600 million of 3.05% notes due April 29, 2026 at 120 bps over Treasuries. The notes were talked to price at Treasuries plus 120 bps to 125 bps.

BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the bookrunners.

Jackson National Health is a subsidiary of Lansing, Mich.-based Jackson National Life Insurance Co.

Ascension Health prices

Ascension Health Alliance sold $700 million of 3.945% 30-year bonds (Aa2/AA+) with a spread of Treasuries plus 122 bps on Monday, according to a market source.

The bonds due Nov. 15, 2046 (Aa2/AA+) priced on the tight side of guidance of 125 bps, plus or minus 5 bps.

Morgan Stanley & Co. LLC was the bookrunner.

Ascension Health is a St. Louis-based nonprofit health-care system.

U.S. Bancorp improves

U.S. Bancorp’s 3.1% notes due 2026 traded modestly better at 120 bps offered earlier on Monday, a market source said.

The company sold $1 billion of the notes (A1/A-/AA-) on Thursday at a spread of Treasuries plus 123 bps.

U.S. Bancorp is a financial services holding company based in Minneapolis.

Credit Suisse eases

Credit Suisse Group Funding’s 4.55% notes due 2026 traded 2 bps softer in early secondary trading at 245 bps offered, according to a market source.

The company sold $2 billion of the notes (Baa3/BBB+/A) on April 13 at 280 bps over Treasuries.

The financial services company is based in Zurich.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.