Synovus Bank prices; Paccar brings add-on; high-grade corporate inflows increase; bonds firm

By Cristal Cody

Tupelo, Miss., Oct. 22 – The investment-grade primary market saw light issuance over Thursday’s session.

Synovus Financial Corp. subsidiary Synovus Bank (Baa2/BBB/BBB) sold $200 million of 10-year fixed-to-floating-rate subordinated notes following fixed income investor calls.

Paccar Financial Corp. (A1/A+/) priced a $100 million add-on to its 1.8% medium-term notes due Feb. 6, 2025 on Thursday 10 basis points tighter than where the first issue first priced in January.

A $200 million preferred stock deal also priced during the session from Fulton Financial Corp.

High-grade deal volume week to date includes more than $25 billion of corporate and sovereign, supranational and agency issuance.

Corporate issuers have priced about $15 billion of bonds this week, in line with the $15 billion of supply expected by market participants for the week.

Meanwhile, investment-grade corporate fund inflows rose over the past week ended Wednesday, according to Refinitive Lipper US Fund Flows.

Inflows edged up to $6.76 billion from $6.64 billion in the prior week.

Credit spreads stable

Market tone was fairly steady ahead of the final U.S. pre-election presidential debate scheduled for 9 p.m. ET.

The Markit CDX North American Investment Grade 35 index was mostly flat at a spread of 57.28 bps.

The PIMCO Investment Grade Corporate Bond Index rose 0.03% to 114.58.

The iShares iBoxx Investment Grade Corporate Bond ETF declined 0.22% to 134.28.

In the secondary market, new issues this week mostly have traded tighter than issuance, a source said.

T-Mobile U.S. Inc. subsidiary T-Mobile USA, Inc.’s $4.75 billion Rule 144A and Regulation S four-tranche offering of senior secured notes (Baa3/BBB-/BBB-) that priced on Monday were quoted about 3 bps to 10 bps better than pricing.

T-Mobile’s 3.6% notes due Nov. 15, 2060 were steady at 200 bps bid.

The company sold $1 billion of the 40-year notes on Monday at a Treasuries plus 205 bps spread.

Initial talk was in the 230 bps spread area.

Ross Stores, Inc.’s $1 billion of senior notes (A2/BBB+) that priced in two tranches on Monday firmed about 1 bp to 2 bps in the secondary market.

The retailer’s 0.875% notes due April 15, 2026 improved about 2 bps to 63 bps bid.

The notes priced in a $500 million tranche at a spread of Treasuries plus 65 bps.

Initial price talk was in the Treasuries plus 100 bps area.

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