Mizuho, Royal Bank, American Honda, New York Life price; FHLBank reopens; Total firms

By Cristal Cody

Tupelo, Miss., July 9 – Investment-grade corporate issuers priced nearly $6 billion of bonds on Tuesday, bringing week-to-date supply to about $18 billion.

About $15 billion to $20 billion of volume was expected by market sources for the week.

Mizuho Financial Group, Inc. priced $2.75 billion of notes in four tranches on Tuesday.

Also, Royal Bank of Canada sold $1.25 billion of five-year senior medium-term notes.

American Honda Finance Corp. placed $1 billion of two-year floating-rate medium-term notes.

New York Life Global Funding brought $900 million of three-year senior secured notes in two tranches to the primary market.

In addition, the Federal Home Loan Bank System priced a $300 million add-on to its 3.25% Global notes due Nov. 16, 2028 on Tuesday.

Nearly $12 billion of bonds priced on Monday, led by Sumitomo Mitsui Financial Group Inc.’s $4 billion two-tranche offering of senior notes and a $4 billion four-part offering of guaranteed notes from Total Capital International.

Coming up on Wednesday, Export Development Canada plans to price a dollar-denominated offering of three-year global notes.

Also, market attention is expected to turn to Federal Reserve chairman Jerome Powell’s twice-annual monetary policy report to Congress on Wednesday and Thursday for signals of a rate cut at the Fed’s July 30-31 monetary policy meeting, sources said.

The minutes from the Federal Open Market Committee’s June meeting will be released on Wednesday.

The Markit CDX North American Investment Grade 32 index improved on Tuesday after softening in the previous two sessions to head out about 1 basis point tighter at a spread of 54 bps.

New issues were mostly tighter in secondary trading, a market source said.

Total Capital’s notes (Aa3/A+) tightened about 2 bps to 4 bps.

Mizuho prices $2.75 billion

Mizuho Financial Group priced $2.75 billion of notes (A1/A-) in four tranches on Tuesday, according to a market source.

The company sold $500 million of four-year floating-rate notes at Libor plus 84 bps.

Mizuho placed $1 billion of 2.721% four-year fixed-to-floating-rate rate notes at a spread of Treasuries plus 85 bps. The fixed rate will reset one year before maturity to a floating rate of Libor plus 84 bps.

Mizuho Financial Group priced $500 million of 2.839% fixed-to-floating-rate notes due July 16, 2025 at a Treasuries plus 95 bps spread. The rate on the six-year notes will convert one year prior to maturity to a floating rate of Libor plus 98 bps.

In the final tranche, the company sold $750 million of 3.153% 11-year notes at a spread of 108 bps over Treasuries. The rate will reset one year ahead of the final maturity to a floating rate of Libor plus 113 bps.

Mizuho Securities USA LLC and J.P. Morgan Securities LLC were the lead managers.

Mizuho Financial Group is a bank holding company based in Tokyo.

Royal Bank of Canada prints

Royal Bank of Canada priced $1.25 billion of 2.55% five-year senior medium-term notes on Tuesday on the tight side of guidance at a spread of Treasuries plus 72 bps, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes (A2/A/AA) priced at 99.828 to yield 2.587%.

RBC Capital Markets, LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities were the bookrunners.

Royal Bank of Canada is a Toronto-based financial services company.

American Honda sells $1 billion

American Honda Finance (A2/A) priced $1 billion of two-year floating-rate medium-term notes (A2/A) on Tuesday at par to yield Libor plus 35 bps, according to an FWP filing with the SEC.

The interest rate will initially reset on Sept. 11 and will reset on each interest payment date.

Citigroup Global Markets, Deutsche Bank Securities Inc. and SG Americas Securities, LLC were the bookrunners.

American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.

New York Life sells two tranches

New York Life Global Funding priced $900 million of three-year senior secured notes (Aaa/AA+/AAA) in two tranches on Tuesday, according to a market source.

The company sold $400 million of floating-rate notes due July 12, 2022 at Libor plus 43 bps.

A $500 million tranche of 2.25% three-year fixed-rate notes priced at a spread of Treasuries plus 45 bps.

Barclays, Citigroup Global Markets and J.P. Morgan Securities were the bookrunners.

New York Life Global is a unit of New York-based mutual insurance company New York Life Insurance Co.

FHLBank brings add-on

Federal Home Loan Bank priced a $300 million add-on to its 3.25% Global notes due Nov. 16, 2028 on Tuesday at 108.072 to yield 2.286%, according to a press release.

The deal had a bid-to-cover ratio of 2.48.

The reopening was priced via a Dutch auction.

FHLBank System previously issued $1.25 billion of the 3.25% notes at 99.005 to yield 3.386% and a spread of Treasuries plus 28 basis points on Nov. 15, 2018. The agency priced $250 million more of the notes on Dec. 3, 2018 at 99.493672 to yield 3.31% and priced a $250 million add-on on June 5 at 107.978 to yield 2.305%.

The total outstanding is now $2.05 billion.

FHLBank System is a Washington, D.C.-based government-sponsored enterprise that provides member financial institutions funding support for mortgage lending and community investment.

Export Development offers notes

Export Development Canada (Aaa/AAA) plans to price a dollar-denominated offering of three-year global notes on Wednesday, according to a market source.

The notes due July 18, 2022 are initially talked to price in the mid-swaps plus 8 bps area.

Deutsche Bank Securities, Goldman Sachs, HSBC Securities (USA) Inc., Nomura Securities International, Inc. and RBC Capital Markets are the bookrunners.

Ottawa-based Export Development Canada is a Canadian government-owned export credit agency.

Total Capital firms

Total Capital International’s 2.819% notes Jan. 10, 2030 improved about 2 bps in the secondary market, a source said.

Total Capital sold $1.25 million of the long 10-year notes on Monday at a Treasuries plus 78 bps spread.

The notes are unconditionally guaranteed by parent company Total SA.

Total Capital is a financing arm of the Courbevoie, France-based oil and gas company.

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