BNY Mellon, CIBC, State Street, Target, Waste Connections price; European Bank markets notes

By Cristal Cody

Tupelo, Miss., Jan. 21 – Bank and financial issuers continued to dominate pricing action in the high-grade primary market on Tuesday following strong supply last week.

Bank of New York Mellon Corp. priced $1 billion of senior medium-term notes in new and reopened tranches.

Canadian Imperial Bank of Commerce tapped the primary market with $1 billion of five-year senior notes.

Nationwide Building Society priced a $1 billion Rule 144A and Regulation S offering of three-year senior notes.

State Street Corp. sold $750 million of 10-year senior notes.

Also on Tuesday, Target Corp. priced $750 million of 10-year notes.

Waste Connections, Inc. brought an upsized $600 million of 10-year senior notes to the market.

Coming up on Wednesday, the European Investment Bank is expected to price a dollar-denominated offering of three-year floating-rate notes.

About $20 billion to $25 billion of investment-grade issuance is anticipated over the holiday-shortened week.

The bond markets were closed on Monday for the Martin Luther King Day holiday.

High-grade corporate deal volume year to date already totals more than $105 billion.

The Markit CDX North American Investment Grade 33 index closed Tuesday at a spread of 45.7 basis points, more than 1 bp softer than where the index ended ahead of the holiday weekend.

BNY Mellon prices $1 billion

Bank of New York Mellon priced $1 billion of senior medium-term notes (A1/A/AA-) in new and reopened tranches on Tuesday, according to a market source.

A $750 million tranche of new 1.85% notes due Jan. 27, 2023 priced at a Treasuries plus 35 bps spread.

The new issue was initially talked to print in the high Treasuries plus 40 bps spread area.

Bank of New York Mellon priced a $250 million tap of its 2.1% senior notes due Oct. 24, 2024 at a 43 bps over Treasuries spread.

The add-on was talked to price in the 55 bps spread area.

Bank of New York Mellon originally sold $750 million of the 2.1% notes on Oct. 17, 2019 at 99.825 to yield 2.137% and a Treasuries plus 57 bps spread. The total outstanding is now $1 billion.

Barclays, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and BNY Mellon Capital Markets LLC were the bookrunners.

Bank of New York Mellon is a financial products and services company based in New York

CIBC brings $1 billion notes

Canadian Imperial Bank of Commerce priced $1 billion of 2.25% senior notes due Jan. 28, 2025 (A2/BBB+/AA-) on Tuesday at 99.991 to yield 2.252% and a spread of Treasuries plus 68 bps, according to a market source and an FWP filing with the Securities and Exchange Commission.

Initial price talk was in the Treasuries plus low 80 bps spread area.

BofA Securities, Inc., CIBC World Markets Corp., J.P. Morgan Securities LLC, UBS Securities LLC and Wells Fargo Securities, LLC were the bookrunners.

The diversified financial institution is based in Toronto.

Nationwide Building Society prints

Nationwide Building Society priced a $1 billion Rule 144A and Regulation S offering of 2% senior notes due Jan. 27, 2023 (Aa3/A/A+) on Tuesday at a spread of 52 bps over Treasuries, according to a market source.

Initial price talk was in the Treasuries plus 65 bps to 70 bps area.

Barclays, Credit Suisse Securities (USA) LLC, Morgan Stanley and NatWest Markets plc were the bookrunners.

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

State Street prices $750 million

State Street priced $750 million of 2.4% 10-year senior notes (A1/A/AA-) on Tuesday at 99.594 to yield 2.446% and a spread of Treasuries plus 68 bps, according to a market source and an FWP filing.

The notes were talked to price in the Treasuries plus 85 bps area.

Goldman Sachs & Co. LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. were the bookrunners.

The financial holding company is based in Boston.

Target raises $750 million

Target priced $750 million of 2.35% notes due Feb. 15, 2030 (A2/A/A-) at a spread of 60 bps over Treasuries on Tuesday, according to a market source and an FWP filing.

Price talk was in the 80 bps over Treasuries spread area.

The notes were sold at 99.813 to yield 2.371%.

BofA Securities, Deutsche, Goldman Sachs, Barclays, Citigroup and J.P. Morgan were the bookrunners.

The discount merchandise chain is based in Minneapolis.

Waste Connections upsizes

Waste Connections priced an upsized $600 million of 2.6% senior notes due Feb. 1, 2030 (Baa2/BBB+/BBB+) on Tuesday at at 99.991 to yield 2.601%, or a spread of 83 bps over Treasuries, according to a market source and an FWP filing.

The notes priced tighter than initial talk in the 105 bps spread area and were upsized from $500 million.

BofA Securities, J.P. Morgan, MUFG, Wells Fargo, CIBC World Markets Corp. and PNC Capital Markets LLC were the bookrunners.

The natural gas transmission and production company is based in Houston.

EIB eyes primary market

The European Investment Bank (Aaa/AAA/AAA) plans to price a dollar-denominated offering of floating-rate notes due Jan. 30, 2023 on Wednesday, according to a market source.

Initial price talk is in the SOFR plus 27 bps area.

BofA Securities, CIBC World Markets Corp., Citigroup, RBC and TD Securities (USA) LLC are the bookrunners for the Rule 144A and Regulation S transaction.

The lender for the European Union is based in Kirchberg, Luxembourg.

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