Wells Fargo, Coca-Cola, Ventas Realty tap primary market; Lam firms; credit spreads better

By Cristal Cody

Eureka Springs, Ark., May 25 – May is topping out with nearly $156 billion of investment-grade corporate bond issuance brought to market through Wednesday.

The pace of issuance was steady over the day.

Wells Fargo Bank NA priced $2.25 billion of three-year notes in fixed- and floating-rate tranches.

A $500 million tranche priced at Libor plus 60 bps, and the bank sold $1.75 billion of 1.75% notes with a spread of 70 bps over Treasuries.

Coca-Cola Co. placed $1.73 billion of notes in three tranches.

Ventas Realty, LP sold an upsized $400 million of seven-year notes during the session.

Landwirtschaftliche Rentenbank priced an upsized $600 million of five-year floating-rate notes.

In addition, the Province of British Columbia sold $750 million of 10-year bonds.

The Markit CDX North American Investment Grade index closed the day more than 2 basis points tighter at a spread of 77 bps.

In secondary trading earlier in the day, Lam Research Corp.’s 3.9% notes due 2026 were quoted early Wednesday trading at 198 bps offered in the secondary market, a source said.

The $1 billion tranche of 10-year notes priced on Monday at 210 bps over Treasuries.

HSBC Holdings plc’s 3.9% subordinated notes due 2026 firmed about 2 bps from Tuesday to 204 bps offered in secondary trading earlier in the session, according to a market source.

The company sold $2.5 billion of the notes on May 18 at Treasuries plus 210 bps.

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