Morgan Stanley, U.S. Bank, PNC, BlackRock, Rockies Express price; inflows remain strong

By Cristal Cody

Tupelo, Miss., Jan. 16 – Investment-grade issuers priced more than $20 billion of bonds over Thursday’s session, led by financial supply.

Morgan Stanley tapped the primary market with a $6 billion two-part offering of global medium-term senior notes.

U.S. Bank NA sold $3.25 billion of senior notes in three tranches.

Societe Generale SA brought $3 billion of senior medium-term notes in two tranches.

PNC Financial Services Group, Inc. priced $2 billion of 10-year senior notes.

In other issuance, CenturyLink, Inc. priced a $1.25 billion split-rated offering of seven-year notes.

BlackRock Inc. came with $1 billion of long 10-year senior notes.

Rockies Express Pipeline LLC sold $750 million of senior notes in two parts.

Ohio National Financial Services, Inc. priced an upsized $425 million of 10-year senior notes.

In addition, the Province of Ontario sold $3 billion of three-year global notes.

Week to date, investment-grade issuers have priced more than $43 billion of bonds.

About $30 billion to $35 billion of issuance was forecast for the week with bank and financial supply anticipated following the release of fourth quarter earnings.

Corporate investment-grade fund inflows remained strong over the past week ended Wednesday at $6.62 billion, down slightly from the record $8.19 billion of inflows in the prior week, according to Lipper US Fund Flows.

The Markit CDX North American Investment Grade 33 index firmed Thursday to a spread of 44.03 basis points from 44.61 bps in the prior session.

Morgan Stanley prices $6 billion

Morgan Stanley (A3/BBB+/A) priced $6 billion of global medium-term senior notes in two tranches on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.

Morgan Stanley sold $2.5 billion of floating-rate notes due Jan. 20, 2023 at par to yield SOFR plus 70 bps. Initial guidance was in the SOFR plus 85 bps area.

A $3.5 billion tranche of 2.699% fixed-to-floating-rate notes due Jan. 22, 2031 priced at par to yield a spread of Treasuries plus 90 bps. The notes will convert Jan. 22, 2030 to a floating rate of SOFR plus 114.3 bps to but excluding the final maturity date.

Initial talk was in the SOFR plus 105 bps area.

Morgan Stanley & Co. LLC was the bookrunner.

Morgan Stanley is a New York-based financial products and services company.

U.S. Bank brings $3.25 billion

U.S. Bank priced $3.25 billion of senior notes (A1/AA-/AA-) in three tranches on Thursday, according to a market source.

A $1.35 billion tranche of two-year floating-rate notes priced at Libor plus 18 bps.

The bank sold $900 million of 1.8% two-year fixed-rate notes at a spread of Treasuries plus 25 bps.

U.S. Bank also priced $1 billion of 2.05% five-year notes at a Treasuries plus 47 bps spread.

Goldman Sachs & Co. LLC, Morgan Stanley and U.S. Bancorp Investments, Inc. were the bookrunners.

The commercial bank is based in Cincinnati.

Societe Generale sells $3 billion

Societe Generale (A1/A/A) priced $3 billion of senior medium-term notes in two tranches on Thursday, according to a market source.

A $1.75 billion tranche of 2.625% five-year notes priced at a spread of Treasuries plus 105 bps.

Initial price guidance was in the Treasuries plus 125 bps area.

A $1.25 billion tranche of 3% 10-year notes priced at a Treasuries plus 125 bps spread, compared to initial talk in the Treasuries plus 145 bps area.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley, RBC Capital Markets LLC, Societe Generale and TD Securities (USA) LLC were the bookrunners.

Societe Generale is a Paris-based banking and financial services company.

PNC prices $2 billion

PNC Financial Services Group sold $2 billion of 2.55% senior notes due Jan. 22, 2030 (A3/A-/A+) on Thursday at a spread of 78 bps over Treasuries, according to a market source and an FWP filing.

The notes notes priced at 99.72 to yield 2.582%.

Initial price talk was in the Treasuries plus 95 bps spread area.

J.P. Morgan, Goldman Sachs, Morgan Stanley and PNC Capital Markets LLC were the bookrunners.

PNC Financial Services is a Pittsburgh-based financial services holding company.

BlackRock raises $1 billion

BlackRock priced $1 billion of 2.4% long 10-year senior notes (Aa3/AA-/) at 99.92 to yield 2.409% and a spread of Treasuries plus 60 bps on Thursday, according to a market source and an FWP filing.

The notes due April 30, 2030 were initially talked at a Treasuries plus 80 bps spread.

J.P. Morgan, BofA Securities, Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Goldman Sachs were the bookrunners.

The investment management company is based in New York.

Rockies Express sells two tranches

Rockies Express Pipeline (Ba1/BBB-/BBB-) priced $750 million of senior notes in two parts on Thursday, according to a market source.

A $400 million tranche of 3.6% five-year notes priced at a spread of Treasuries plus 200 bps, compared to initial talk in the 250 bps area.

The company sold $350 million of 4.8% 10-year notes at a Treasuries plus 300 bps spread.

Initial price guidance was in the Treasuries plus 325 bps area.

Credit Suisse Securities (USA) LLC, MUFG and Wells Fargo were the bookrunners.

Rockies Express Pipeline is a Leawood, Kansas-based natural gas pipeline system owned by Tallgrass Energy Partners LP and Phillips 66.

Ohio National Financial prints

Ohio National Financial Services priced an upsized $425 million of 5.55% 10-year senior notes (Baa3/BBB-/) on Thursday at a spread of 375 bps over Treasuries, according to a market source.

Initial price talk on the notes was in the Treasuries plus 375 bps area.

The deal was upsized from $300 million.

BofA Securities, Citigroup and BMO Capital Markets Corp. were the bookrunners of the Rule 144A and Regulation S offering.

Ohio National Financial Services is a Cincinnati-based life insurance and disability income insurance provider.

Ontario prices $3 billion notes

Ontario (Aa3/AA-/) priced $3 billion of 1.75% three-year global notes on Thursday at mid-swaps plus 15 bps, or a Treasuries plus 18.75 bps spread, according to a market source and an FWP filing.

Initial price talk was in the mid-swap plus 17 bps area.

The notes priced at 99.953 to yield 1.766%.

Citigroup, Goldman Sachs, Morgan Stanley and TD Securities were the bookrunners.

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