Wells Fargo, Citigroup, Toyota Motor Credit price new deals; new Leucadia notes firm

By Cristal Cody and Aleesia Forni

Virginia Beach, Oct. 21 - Wells Fargo & Co., Toyota Motor Credit Corp. and Citigroup Inc. were among the high-grade names to bring new deals on Monday.

Wells Fargo sold the day's largest deal, pricing $3.5 billion of notes in two tranches, according to an informed source.

The company priced $1.5 billion of 2.15% notes due 2019 at Treasuries plus 85 basis points and $2 billion of 5.375% notes due 2043 at 170 bps over Treasuries.

Both tranches sold in line with guidance.

In another financial sale, Citigroup hit the market with $2 billion of notes due 2023 priced at Treasuries plus 130 bps, according to a market source.

The notes priced at the tight end of the Treasuries plus 135 bps area talk.

Toyota brought to market $1.5 billion of 2% notes due 2018.

The company priced the new paper with a spread of Treasuries plus 65 bps.

Meanwhile, Leucadia National Corp. hit the market with $250 million of 6.625% notes due 2043 priced with a spread of 300 bps over Treasuries.

Investment-grade bonds traded mostly flat to slightly weaker over the session, according to market sources.

The Markit CDX North American Investment Grade series 21 index eased 1 bps to a spread of 72 bps on Monday.

Leucadia National's new 6.625% senior notes tightened in secondary trading, a trader said late afternoon.

Wells Fargo sells two-parter

Monday saw Wells Fargo price $3.5 billion of notes in two tranches during the session, according to an informed source.

There was $1.5 billion of 2.15% notes due 2019 priced with a spread of Treasuries plus 85 bps.

A $2 billion tranche of 5.375% notes due 2043 was priced with a spread of 170 bps over Treasuries.

Both tranches sold in line with guidance.

Full details were not available at press time.

The financial services company is based in San Francisco.

Citigroup prices $2 billion

Meanwhile, Citigroup sold $2 billion of senior notes (Baa2/A-/A) due 2023 with a spread of Treasuries plus 130 bps, according to a market source.

The notes priced at the tight end of the Treasuries plus 135 bps area talk.

Pricing was at 99.77 to yield 3.903%.

Citigroup Global Markets Inc. was the sole bookrunner.

The financial services company is based in New York.

Toyota prices $1.5 billion

Monday' session also saw Toyota Motor Credit price $1.5 billion of 2% medium-term notes, series B, (Aa3/AA-/) due Oct. 24, 2018 with a spread of Treasuries plus 65 bps, according to an FWP filing with the Securities and Exchange Commission.

Pricing was at 99.976 to yield 2.005%.

Citigroup Global Markets, BofA Merrill Lynch, Morgan Stanley & Co. LLC and RBC Capital Markets LLC were the joint bookrunners.

Fifth Third Securities Inc., MFR Securities Inc., Mizuho Securities USA Inc., Santander Investment Securities Inc., SMBC Nikko Securities America Inc. and Williams Capital Group LP were the co-managers.

The U.S. funding arm of Toyota is based in Torrance, Calif.

Leucadia sells 30-year notes

Also on Monday, Leucadia National priced $250 million of 6.625% senior notes (Baa2/BBB/BBB-) due 2043 at Treasuries plus 300 bps, according to a market source.

Pricing was at 98.781 to yield 6.72%.

Jefferies LLC was the sole bookrunner.

Proceeds will be used for general corporate purposes.

Leucadia National's 6.625% notes tightened in the secondary market to 293 bps bid, 290 bps offered, a trader said.

Leucadia is based in New York and engages in beef processing, manufacturing, gaming entertainment, real estate activities and medical product development.

Bank/brokerage CDS prices flat

Investment-grade bank and brokerage CDS prices were unchanged across the board on Monday, according to a market source.

Bank of America Corp.'s CDS costs went out at 89 bps bid, 93 bps offered. Citigroup Inc.'s CDS costs were 80 bps bid, 84 bps offered. JPMorgan Chase & Co.'s CDS costs closed at 76 bps bid, 79 bps offered. Wells Fargo & Co.'s CDS costs were flat at 52 bps bid, 56 bps offered.

Merrill Lynch's CDS costs ended at 90 bps bid, 95 bps offered. Morgan Stanley's CDS costs were unchanged at 110 bps bid, 114 bps offered. Goldman Sachs Group, Inc.'s CDS costs closed at 113 bps bid, 118 bps offered.

Paul Deckelman contributed to this review.

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