Visa brings $16 billion megadeal to high-grade bond market; bank, financial paper widens

By Aleesia Forni and Cristal Cody

New York, Dec. 9 – Visa Inc. entered Wednesday’s high-grade primary market with its debut bond offering, pricing $16 billion of bonds in six parts.

Proceeds from the highly anticipated jumbo deal will be used to help fund a portion of the purchase price for the acquisition of Visa Europe Ltd.

The deal, which is the fifth-largest offering brought to the high-grade market this year, priced after the issuer stood down on Tuesday due to unfavorable market conditions.

One source noted that the market’s tone was “looking a little better” on Wednesday following the turbulent start to the week and the no-print Tuesday session.

In the day’s only other reported new issue, Bank of Nova Scotia sold $1.25 billion of subordinated notes at the tight side of guidance.

In total, issuers have printed more than $24.85 billion of supply so far this week.

Investment-grade bank and financial paper traded mostly softer during Wednesday’s session.

JPMorgan Chase & Co.’s 4.25% subordinated notes due 2027 eased 4 basis points.

Goldman Sachs Group Inc.’s notes were flat to weaker in the secondary market.

Bank of America Corp.’s 3.875% senior notes due 2025 eased about 1 bp.

The Markit CDX North American Investment Grade 25 index was unchanged to modestly softer going out at a spread of 86 bps.

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