Wells Fargo, Morgan Stanley, Marathon, Constellation Brands, SSA price; inflows dip

By Cristal Cody

Tupelo, Miss., April 23 – High-grade supply ramped up on Thursday with more than $17 billion of corporate bonds and $3 billion of sovereign, supranational and agency notes priced.

Wells Fargo & Co. led supply with a $6.5 billion two-part offering of medium-term senior redeemable fixed-to-floating-rate notes.

Morgan Stanley came by with $3 billion of six-year global medium-term fixed-to-floating-rate senior notes.

Expedia Inc. priced an upsized $2.75 billion of five-year notes in two tranches in a Rule 144A deal.

Marathon Petroleum Corp. sold $2.5 billion of senior notes in two tranches.

Constellation Brands, Inc. priced $1.2 billion of senior notes in two parts.

Also, Nasdaq, Inc. tapped the primary market on Thursday with $500 million of 30-year senior notes.

Travelers Cos., Inc. priced $500 million of 30-year senior notes.

In addition, First Horizon Bank priced an upsized $450 million of 10-year subordinated notes.

The SSA market saw new dollar-denominated issuance from Bank of England and Kommuninvest I Sverige AB.

Bank of England priced $2 billion of three-year notes, while Kommuninvest sold $1 billion of notes due Feb. 2, 2022.

Deal volume totals more than $33 billion week to date.

Inflows dip

Investment-grade corporate funds saw inflows for a second week for the past week ended Wednesday, Refinitiv Lipper US Fund Flows reported Thursday.

Inflows totaled $2.15 billion, down from $5.81 billion of inflows in the previous week.

The net outflow year to date is $58.63 billion.

Stocks were mixed over the day, while high-grade credit and exchange-traded funds improved.

The Markit CDX North American Investment Grade 33 index headed out about 1.5 basis points tighter at a spread of 93.5 bps.

The iShares iBoxx Investment Grade Corporate Bond ETF rose 0.42% to 129.99 in early trading and finished up 0.42% at 129.99.

The Pimco Investment Grade Corporate Bond Index ETF was up 0.6% at 110.53 over the morning and closed the day 0.51% better at 110.43.

Wells Fargo sells $6.5 billion

Wells Fargo priced $6.5 billion of medium-term senior redeemable fixed-to-floating-rate notes (A2/A-/A+) in two tranches in its offering on Thursday, according to a market source.

A $3 billion tranche of 2.188% notes due April 30, 2026 priced at a spread of 183 bps over Treasuries. Initial price talk was in the Treasuries plus 215 bps spread area.

The fixed rate on the notes will convert in April 2025 to a floating rate of SOFR plus 200 bps.

Wells Fargo priced $3.5 billion of 3.068% notes due April 30, 2041 at a spread of 190 bps over Treasuries. Initial price talk was in the Treasuries plus 220 bps area.

The rate will reset in April 2040 to a floating rate of SOFR plus 253 bps.

Wells Fargo Securities LLC was the bookrunner.

The financial services company is based in San Francisco.

Morgan Stanley brings $3 billion

Morgan Stanley (A3/BBB+/A) priced $3 billion of 2.188% global medium-term fixed-to-floating-rate senior notes due April 28, 2026 on Thursday at par to yield a spread of 183 bps over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.

Price guidance was in the Treasuries plus 185 bps area, plus or minus 2 bps, with the notes launched in a $3 billion tranche at Treasuries plus 183 bps.

The coupon will reset April 28, 2025 to but excluding the maturity to a floating rate of SOFR plus plus 199 bps.

Morgan Stanley & Co. LLC was the bookrunner.

Morgan Stanley is a New York-based financial products and services company.

Expedia upsizes deal

Expedia priced an upsized $2.75 billion of senior notes (Baa3/BBB-/BBB-) in two tranches in a Rule 144A transaction on Thursday, according to market sources.

A $2 billion tranche of five-year notes priced at par to yield 6.25%.

Initial price talk was in the 7% area and the tranche was upsized from $1 billion.

Expedia sold $750 million of five-year notes with two years of call protection at par to yield 7% versus talk in the 7.75% area.

The tranche size was downsized from $1 billion.

BofA Securities, Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Mizuho Securities USA Inc. were the bookrunners.

The travel company is based in Bellevue, Wash.

Marathon Petroleum prices

Marathon Petroleum sold $2.5 billion of senior notes (Baa2/BBB/BBB) in two tranches on Thursday, according to a market source.

A $1.25 billion tranche of 4.5% three-year notes priced at a spread of Treasuries plus 425 bps.

Marathon sold $1.25 billion of 4.7% five-year notes with a Treasuries plus 437.5 bps spread.

The company dropped an offering of 10-year notes from the final deal.

All three tranches were initially talked to price in the Treasuries plus 500 bps area.

Bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Mizuho.

Marathon Petroleum is a crude oil refiner based in Findlay, Ohio.

Constellation Brands prints

Constellation Brands priced $1.2 billion of senior notes (Baa3/BBB) in two tranches on Thursday, according to a market source and an FWP filing.

The company sold $600 million of 2.875% 10-year notes at 99.801 to yield 2.898% and a spread of Treasuries plus 230 bps.

Initial price talk on the five-year notes was in the Treasuries plus 285 bps area.

A $600 million tranche of 3.75% 30-year notes priced at 99.286 to yield 3.79% and a Treasuries plus 260 bps spread.

The notes were talked at the 305 bps spread area.

BofA Securities, Goldman Sachs & Co. LLC, J.P. Morgan, BMO Capital Markets Corp. and TD Securities (USA) LLC were the bookrunners.

Constellation Brands is a Victor, N.Y.-based producer, importer and distributor of beer, wine and liquor.

Travelers raises $500 million

Travelers priced $500 million of 2.55% 30-year senior notes (A2/A/A) at 99.231 to yield 2.587%, or a spread of Treasuries plus 140 bps on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.

Initial guidance was in the 180 bps spread area.

Citigroup, HSBC Securities, J.P. Morgan and Wells Fargo were the bookrunners.

Travelers is a New York-based holding company for auto, home and business property casualty insurance companies.

Nasdaq sells notes

Nasdaq priced $500 million of 3.25% 30-year senior notes (Baa2/BBB) on Thursday at 98.098 to yield 3.351%, or a spread of Treasuries plus 215 bps, according to a market source and an FWP filing.

The notes were guided to print in the Treasuries plus 300 bps area.

BofA Securities, Goldman Sachs, J.P. Morgan, Mizuho and Morgan Stanley were the bookrunners.

Nasdaq is a New York City-based financial services company that owns and operates the Nasdaq stock market.

First Horizon upsizes

First Horizon Bank priced an upsized $450 million of 5.75% 10-year subordinated notes (Baa3//BBB-) on Thursday at a spread of 514.7 bps over Treasuries, according to a market source.

Initial price talk was at the 6% area.

The deal was upsized from $300 million.

FHN Financial Capital Markets, Goldman Sachs, J.P. Morgan and Morgan Stanley were the bookrunners.

Memphis-based bank parent holding company First Horizon National Corp. held fixed income investor calls for the offering on Wednesday.

Bank of England in primary

Bank of England priced $2 billion of 0.5% notes due April 28, 2023 (Aa2/AA/AA-) at a Treasuries plus 26 bps spread on Thursday, according to a market source.

Initial price talk was in the Treasuries plus 32 bps area with guidance tightened to Treasuries plus 26 bps.

BofA Securities, HSBC Securities, RBC Capital Markets, LLC and TD Securities were the bookrunners of the Rule 144A and Regulation S offering.

London-based Bank of England is the central bank of the United Kingdom.

Kommuninvest prices

Kommuninvest (Aaa/AAA) priced $1 billion of 0.5% notes due Feb. 2, 2022 in a Rule 144A and Regulation S transaction on Thursday at mid-swaps plus 15 bps, or a spread of Treasuries plus 33.35 bps, according to an informed source.

Initial price talk was in the mid-swaps plus 20 bps area with guidance tightened to mid-swaps plus 15 bps.

BofA Securities, Barclays, SEB Securities, Inc. and TD Securities were the bookrunners.

Kommuninvest is an Orebro-based company that offers funding to municipalities of Sweden.

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