PepsiCo, American Express price; Las Vegas Sands markets bonds; corporate inflows decline

By Cristal Cody

Tupelo, Miss., July 25 – Two high-grade issuers priced $3.5 billion of bonds over Thursday’s session.

PepsiCo Inc. tapped the primary market with a $2 billion two-tranche offering of senior notes.

American Express Co. sold $1.5 billion of five-year senior notes.

In other market action, Las Vegas Sands Corp. held fixed income investor calls on Thursday for a dollar-denominated three-part offering of senior notes.

Investment-grade issuers have priced more than $23 billion of bonds week to date, beating forecasts of about $15 billion to $20 billion of deal volume.

Bank and financial supply have been steady with issues from U.S. Bancorp, Bank of Nova Scotia and JPMorgan Chase & Co. on Wednesday, Bank of America Corp., BB&T Corp. and Bank of Montreal on Tuesday and Synchrony Financial and Citizens Financial Group, Inc. on Monday.

Lipper US Fund Flows reported that corporate investment-grade fund inflows declined to $2.5 billion for the week ended Wednesday from $3.65 billion in the previous week.

The Markit CDX North American Investment Grade 32 index softened about 1 basis point on Thursday to close at a spread of 51 bps.

In the secondary market, new bank and financial paper has traded mostly better than issuance, a source said.

U.S. Bancorp’s $2.25 billion of fixed-rate notes priced in two tranches on Wednesday tightened about 3 bps to 7 bps.

The company’s $1 billion tranche of 3% notes due July 30, 2029 (A1/A-/A+) firmed 7 bps to the 88 bps area. The notes priced at a spread of Treasuries over 95 bps.

Bank of Nova Scotia’s $1.25 billion of 2.7% senior notes due Aug. 3, 2026 (A2/A-/AA-) improved about 2 bps in secondary trading, according to the market source.

The bail-inable notes (A2/A-/AA-) priced at a Treasuries plus 82 bps spread.

Synchrony Financial’s $750 million of 2.85% senior notes due July 25, 2022 are trading about 12 bps tighter than where the notes priced.

Synchrony Financial (/BBB-/BBB-) sold the notes Monday at a Treasuries plus 110 bps spread.

PepsiCo prices $2 billion

PepsiCo priced $2 billion of senior notes (A1/A+/) in two tranches in the offering on Thursday, according to a market source.

The company sold $1 billion of 2.65% 10-year notes at a spread of 58 bps over Treasuries.

A $1 billion tranche of 3.375% 30-year bonds priced with a Treasuries plus 80 bps spread.

The notes priced on the tight side of guidance.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. were the bookrunners.

The food and beverage company is based in Purchase, N.Y.

American Express sells $1.5 billion

American Express sold $1.5 billion of 2.5% five-year senior notes (A3/BBB+/A) in its transaction at a spread of 72 bps over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.

Initial price talk was in the high 80 bps spread area.

The notes priced at 99.678 to yield 2.569%.

Barclays, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and RBC Capital Markets LLC were the bookrunners.

The credit card services company is based in New York.

Las Vegas Sands in pipeline

Las Vegas Sands held fixed income investor calls on Thursday for a three-part registered offering of senior notes (Baa3/BBB-/BBB-), according to a market source.

Barclays, BofA Securities Inc. and Goldman Sachs & Co. LLC are the arrangers for the investor calls that will continue through Friday.

Bookrunners on the bond offering also include BNP Paribas Securities Corp., Fifth Third Securities Inc., Scotiabank and SMBC Nikko Securities America Inc.

Las Vegas Sands is a Las Vegas-based developer of multi-use integrated resorts.

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