American Express, HSBC, Markel, Ryder price notes; Japan Bank eyes primary; Fidelity tightens

By Cristal Cody

Tupelo, Miss., May 15 – Deal volume remained strong in the high-grade primary market on Wednesday with supply led by banking and financial issuers.

American Express Co. priced $3 billion of senior notes in three tranches.

HSBC Holdings plc came with $3 billion of 11-year fixed-to-floating-rate senior notes.

Also during the session, Markel Corp. priced $600 million of 30-year senior notes.

Ryder System, Inc. sold $550 million of three-year medium-term notes.

Coming up on Thursday, Japan Bank for International Cooperation plans to price a dollar-denominated offering of five-year guaranteed bonds.

More than $10 billion of corporate bonds priced on Tuesday after issuers stayed out of the primary market on Monday. Deal volume so far this week has been led by Waste Management, Inc.’s $4 billion five-tranche offering of notes priced on Tuesday to help finance an acquisition of Advanced Disposal Services, Inc.

About $25 billion to $35 billion of investment-grade issuance is expected this week by market sources.

Fidelity National Information Services, Inc.’s $1 billion of 3.75% senior notes due May 21, 2029 tightened about 10 basis points in secondary trading after pricing on Tuesday, a market source said.

The 3.75% notes priced at 99.826 to yield 3.771%, or a spread of Treasuries plus 135 bps.

Fidelity sold the dollar notes in addition to pricing a €5 billion six-part offering and a £1.25 billion two-tranche issue of reverse Yankee bonds on Tuesday as part of the funding for its acquisition of Worldpay Inc.

The Markit CDX North American Investment Grade 32 index closed steady at a spread of 63 bps on Wednesday.

American Express prices

American Express priced $3 billion of senior notes (A3/BBB+/A) in three tranches on Wednesday, according to FWP filings with the Securities and Exchange Commission.

The company sold $900 million of floating-rate notes due May 20, 2022 at par to yield Libor plus 62 bps.

A $1.25 billion tranche of 2.75% three-year notes priced at 99.88 to yield 2.792%, or a Treasuries plus 67 bps spread.

American Express sold $850 million of 3.125% seven-year notes at 99.732 to yield 3.168%. The notes priced with a spread of 92 bps over Treasuries.

Barclays, BofA Securities, Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities LLC were the bookrunners.

The credit card services company is based in New York.

HSBC sells fixed/floaters

HSBC Holdings priced $3 billion of 3.973% fixed-to-floating-rate senior notes due May 22, 2030 (A2/A/AA-) at par to yield a spread of 160 bps over Treasuries on Wednesday, according to a market source and an FWP filing with the SEC.

Initial price talk was in the Treasuries plus 170 bps area.

The notes will reset May 22, 2029 to a floating rate of Libor plus 161 bps.

HSBC Securities was the bookrunner.

The banking and financial services group is based in London.

Markel in primary

Markel priced $600 million of 5% 30-year senior notes (Baa2/BBB/) on Wednesday at a spread of 220 bps over Treasuries, according to a market source and an FWP filing with the SEC.

The notes priced at 99.569 to yield 5.028%.

Initial price talk was in the Treasuries plus 235 bps area.

Citigroup Global Markets Inc. and Wells Fargo Securities were the bookrunners.

Markel is a financial holding company based in Glen Allen, Va.

Ryder System sells notes

Ryder System (Baa1/BBB+/A-) priced $550 million of 2.875% three-year medium-term notes at 99.942 and a spread of 77 bps over Treasuries, according to a market source and a 424B3 filed with the SEC on Wednesday.

The notes priced on the tight side of guidance and better than initial talk.

BNP Paribas Securities Corp., BofA Securities, Mizuho Securities USA LLC, PNC Capital Markets LLC and RBC Capital Markets, LLC were the bookrunners.

Ryder System is a Miami-based truck rental and fleet management company.

Japan Bank in deal pipeline

Japan Bank for International Cooperation plans to price a dollar-denominated offering of five-year guaranteed bonds (A1/A+/) on Thursday, according to a market source and a 424B5 filing with the SEC.

The bonds due May 23, 2024 were initially talked to price with a spread in the mid-swaps plus 40 bps area.

Barclays, Daiwa Capital Markets Europe Ltd., Goldman Sachs International and J.P. Morgan Securities plc are the bookrunners.

The notes will be guaranteed by Japan.

The financial institution is based in Tokyo.

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