IADB brings $3 billion; Svensk prices; Time Warner firms; Visa unchanged; McDonald’s eases

By Aleesia Forni and Cristal Cody

New York, Jan. 7 – Swedish Export Credit Corp. and Inter-American Development Bank priced new bond deals on Thursday as stocks tumbled following heightened fears of slower growth in China after the country suspended trading for the second time this week.

Inter-American Development Bank sold a $3 billion issue of global notes in line with talk, and Svensk priced a $550 million offering of floaters.

In light of the volatile market backdrop, most issuers elected to remain on the sidelines during Thursday’s session, continuing what has been “a very rough start to the year,” a market source said.

With a significant new issue pipeline, another market source noted that once the window for issuance presents itself, the high-grade primary market will be flooded with new deals.

Around $32 billion of paper has come to market during the opening week of the new calendar year, with more than $24 billion of that total pricing during the session on Tuesday.

Despite the weaker conditions, the figure has managed to top what was predicted to be $25 billion to $30 billion of new issuance for the week.

Investment-grade bonds were mixed in secondary trading over the day, and credit spreads closed wider.

The Markit CDX North American Investment Grade 25 index ended 3 bps weaker at a spread of 96 bps.

Time Warner Inc.’s 3.875% notes due 2026 firmed 3 bps on Thursday.

Visa Inc.’s senior notes (A1/A+) remain active in the secondary market but were mostly unchanged.

McDonald’s Corp.’s 3.7% senior notes due 2026 traded 1 bp softer.

IADB sells $3 billion

Inter-American Development Bank priced $3 billion of 1.875% global notes (Aaa/AAA) due March 15, 2021 on Thursday at mid-swaps plus 29 basis points, according to a market source.

The notes sold in line with talk.

Goldman Sachs & Co., J.P. Morgan Securities LLC, Nomura and TD Securities are the joint bookrunners.

The issuer provides financing for Latin American and Caribbean countries and is based in Washington, D.C.

Svensk prices

And Svensk priced a $550 million issue of three-year floating-rate bonds at par to yield Libor plus 33 bps on Thursday, according to an FWP filed with the Securities and Exchange Commission.

Bank of Montreal, Citigroup Global Markets Inc. and Mizuho Securities are the bookrunners.

Based in Stockholm, Svensk is the lender to Sweden’s export industry.

Time Warner improves

Time Warner’s 3.875% notes due 2026 firmed 3 bps to 167 bps bid, a market source said.

Time Warner sold $600 million of the notes (Baa2/BBB/ BBB+) on Nov. 17 at a spread of Treasuries plus 162.5 bps.

The media company is based in New York.

Visa stable

Visa’s 3.15% notes due 2025 were unchanged on Thursday at 87 bps bid, according to a market source.

The company sold $4 billion of the bonds on Dec. 9 at Treasuries plus 97 bps.

The retail electronic payments network operator is based in San Francisco.

McDonald’s eases

McDonald’s 3.7% notes due 2026 eased 1 bp to 145 bps bid in the secondary market, according to a source.

The company sold $1.75 billion of the notes (Baa1/BBB+/BBB+) on Dec. 2 at a spread of Treasuries plus 155 bps.

The fast food chain is based in Oak Brook, Ill.

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