Credit Suisse, Compass Bank, KeyBank, Western Union price; supply beats weekly forecast

By Cristal Cody

Tupelo, Miss., June 6 – The high-grade bond market capped off a third consecutive session of strong issuance on Wednesday.

In corporate supply, Credit Suisse Group AG, Jackson National Life Global Funding, Compass Bank, Alliant Energy Finance LLC, Edwards Lifesciences Corp., KeyBank NA and Western Union Corp. priced notes.

Also, KfW sold $4 billion of two-year global notes.

Issuers have priced more than $31 billion of bonds over the past three days, already more than the $25 billion of deal volume syndicate sources expected for the week.

The week’s supply was led on Tuesday by Union Pacific Corp.’s $6 billion seven-part sale of fixed-rate senior notes.

On Monday, primary action was led by Kraft Heinz Foods Co., John Deere Capital Corp., Hyundai Capital America and Goldman Sachs Bank USA.

New issues are trading mostly better in the secondary market, a source said.

Kraft Heinz Foods’ $3 billion of guaranteed senior notes (Baa3/BBB/BBB-) priced in three tranches on Monday firmed about 1 basis point to 3 bps from issuance, according to a market source.

The Markit CDX North American Investment Grade 30 index closed mostly unchanged at a spread of 64 bps.

Credit Suisse sells $2 billion

Credit Suisse Group sold $2 billion of senior notes (Baa2/BBB+/A-) in two tranches on Wednesday, according to a market source.

The company priced $750 million of floating-rate notes due June 12, 2024 at Libor plus 124 bps.

Credit Suisse sold $1.25 billion of 4.207% six-year fixed-to-floating-rate notes at a spread of Treasuries plus 140 bps. The notes will reset to a floating rate of Libor plus 124 bps after the initial fixed-rate period.

Credit Suisse Securities (USA) LLC was the bookrunner.

The financial services company is based in Zurich.

Jackson National taps primary

Jackson National Life Global Funding priced $1.2 billion of senior secured notes (A1/AA-/AA-) in three tranches, according to a market source.

The company sold $500 million of three-year floaters at Libor plus 48 bps.

Jackson National Life priced $300 million of 3.30% three-year fixed-rate notes at a spread of 70 bps over Treasuries.

The $400 million offering of 3.875% seven-year notes priced with a Treasuries plus 98 bps spread.

BofA Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC were the lead managers.

The company is a financing arm of Lansing, Mich.-based Jackson National Life Insurance Co.

Compass Bank prices $1.15 billion

Compass Bank priced $1.15 billion of senior notes (Baa2/BBB+/BBB+) in two parts, a market source said.

The bank sold $450 million of floating-rate notes due June 1, 2021 at Libor plus 73 bps.

The $700 million tranche of 3.50% three-year fixed-rate notes priced with a spread of 95 bps over Treasuries.

BBVA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs and Morgan Stanley & Co. LLC were the lead managers.

Compass Bank is part of Birmingham, Ala.-based financial holding company BBVA Compass Bancshares, Inc.

Alliant Energy sells two tranches

Alliant Energy Finance priced $700 million of senior notes (/BBB+) in two tranches on the tight side of guidance, a market source said.

The company sold $400 million of 3.75% five-year notes with a spread of Treasuries plus 95 bps. The notes were talked in the Treasuries plus 100 bps area, plus or minus 5 bps.

Alliant Energy Finance placed $300 million of 4.25% 10-year notes at a Treasuries plus 130 bps spread, tighter than guidance in the 135 bps over Treasuries spread area.

BofA Merrill Lynch, J.P. Morgan Securities and Mizuho Securities USA LLC were the bookrunners.

Alliant Energy Finance is a financing arm of the Madison, Wis.-based utility holding company.

Edwards Lifesciences sells notes

Edwards Lifesciences sold $600 million of 4.30% 10-year senior notes on the tight side of guidance at a spread of 135 bps over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes (Baa2/BBB-/) priced at 99.767 to yield 4.329%.

Initial price talk was in the Treasuries plus 150 bps-155 bps area with guidance later firmed to the Treasuries plus 140 bps area, plus or minus 5 bps.

The bookrunners were BofA Merrill Lynch, J.P. Morgan Securities, Deutsche Bank Securities, HSBC Securities (USA) Inc., Morgan Stanley and Wells Fargo Securities LLC.

The Irvine, Calif., company focuses on providing products and technologies to address cardiovascular disease.

KeyBank prices $500 million

KeyBank sold $500 million of 3.35% three-year senior notes (A3/A-/A-) at a spread of 70 bps over Treasuries, according to a market source.

The notes priced on the tight side of guidance in the Treasuries plus 72 bps area, plus or minus 2 bps.

Goldman, Sachs & Co., J.P. Morgan Securities LLC, KeyBank Capital Markets Inc. and Morgan Stanley & Co. LLC were the bookrunners.

KeyBank is a Cleveland, Ohio-based regional bank.

Western Union prices five-year notes

Western Union sold $300 million of 4.25% five-year senior notes at 99.92 to yield 4.268%, or a spread of Treasuries plus 145 bps, according to a market source and an FWP filing with the SEC.

The notes (Baa2/BBB/BBB+) priced on top of guidance.

Barclays and BofA Merrill Lynch were the bookrunners.

Western Union is an Englewood, Colo.-based money transfer network.

KfW prices $4 billion

KfW (Aaa/AAA/Scope: AAA) priced $4 billion of 2.75% global notes due July 15, 2020 on Wednesday at 99.982 and a spread of mid-swaps minus 3 bps, or Treasuries plus 23.8 bps, according to a market source and an FWP filing with the SEC.

The notes were initially talked to price with a spread in the mid-swaps minus 2 bps area.

Barclays, HSBC Securities and RBC Capital Markets, LLC were the lead managers.

KfW is a government-backed bank based in Frankfurt.

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