Panasonic, Micron Technology, Export Development Canada price; credit spreads tighten

By Cristal Cody

Tupelo, Miss., July 10 – Panasonic Corp. led deal volume on Wednesday with a $2.5 billion three-part Rule 144A and Regulation S offering of notes on Wednesday following a global roadshow.

Also in the primary market, Micron Technology, Inc. sold $1.75 billion of split-rated senior notes in two tranches.

In addition, Export Development Canada priced a $2 billion registered offering of three-year global notes.

Investment-grade supply has been strong this week with more than $24 billion of bonds pricing over the first three sessions.

About $15 billion to $20 billion of volume was expected by market sources for the week.

Supply has been led by a $4 billion two-tranche offering of senior notes from Sumitomo Mitsui Financial Group Inc. and a $4 billion four-part offering of guaranteed notes from Total Capital International on Monday.

Bonds from Sumitomo Mitsui and Total Capital traded flat to modestly better in the secondary market, a source said.

Sumitomo Mitsui’s two tranches of senior notes (A1/A-) improved about 1 basis point.

The Tokyo-based banking and financial company sold $2 billion of 2.696% notes due July 16, 2024 at a spread of Treasuries plus 85 bps and $2 billion of 3.04% notes due July 16, 2029 with a Treasuries plus 100 bps spread.

The Markit CDX North American Investment Grade 32 index came in about 2 bps on Wednesday to close at a spread of 52 bps.

Market sources report they are eying a possible rate cut of as much as 50 bps at the Federal Reserve’s July 30-31 monetary policy meeting. The focus on the rate cut follows comments from Federal Reserve chairman Jerome Powell who started a two-day monetary policy report to Congress on Wednesday.

Panasonic prices $2.5 billion

Panasonic (A3/A-/BBB) priced $2.5 billion of notes in three tranches in its offering on Wednesday, according to a market source.

A $1 billion tranche of 2.536% three-year notes priced on top of talk at a spread of Treasuries plus 75 bps.

The company sold $1 billion of 2.679% five-year notes on the tight side of guidance at a spread of 85 bps over Treasuries.

Panasonic priced $500 million of 3.113% 10-year notes with a 105 bps over Treasuries spread, on the firm side of guidance in the 110 bps area.

BofA Securities, Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC were the bookrunners.

The company began a roadshow on Friday in Asia, Europe and the United States for the notes.

Panasonic is an electronics company based in Kadoma-shi, Osaka, Japan.

Micron sells $1.75 billion

Micron Technology sold $1.75 billion of fixed-rate senior notes (Baa3/BB+/BBB-) in two tranches in its deal on Wednesday, according to a market source.

A $900 million tranche of 4.185% notes due Feb. 15, 2027 priced with a spread of 225 bps over Treasuries.

The notes were initially talked to price with a spread in the Treasuries plus 245 bps area with guidance later firmed to the 230 bps area.

Micron Technology sold $850 million of 4.663% notes due Feb. 15, 2030 at a 260 bps over Treasuries spread.

Initial price talk on the 10.5-year notes was in the 275 bps over Treasuries spread area. Guidance was later firmed to the 265 bps area.

Goldman Sachs, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.

Micron is a Boise, Idaho-based semiconductor company.

Export Development prices $2 billion

Meanwhile, Export Development Canada (Aaa/AAA) priced $2 billion of 1.75% three-year global notes on Wednesday at mid-swaps plus 8 bps, or a Treasuries plus 6.2 bps spread, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes due July 18, 2022 were initially talked to price in the mid-swaps plus 8 bps area.

The notes priced at 99.64 to yield 1.874%.

Deutsche Bank AG, London Branch, Goldman Sachs International, HSBC Bank plc, Nomura International plc and RBC Capital Markets, LLC were the bookrunners.

Ottawa-based Export Development Canada is a Canadian government-owned export credit agency.

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