American Honda, NWB price upsized deals; month’s supply tops $119 billion; spreads ease

By Aleesia Forni

Virginia Beach, April 30 – American Honda Finance Corp. and Nederlandse Waterschapsbank NV priced upsized deals to close out a month that topped sources’ expectations.

More than $119 billion of new issuance came to market in April, besting predictions of around $90 billion to $100 billion.

Nederlandse Waterschapsbank sold a $600 million add-on to its existing 1.25% notes due 2017 in line with price guidance.

Meantime, American Honda Finance attracted around $750 million of orders for its new $550 million issue of notes.

The issue priced around 10 basis points tight of initial guidance.

Investment-grade bond spreads were again wider to close Thursday’s session.

The Markit CDX North American Investment Grade series 23 index eased 2 bps to a spread of 63 bps.

Meanwhile, Apple Inc.’s bonds were mixed in the secondary market following the company’s announcement earlier this week that it will continue to access the domestic and international debt markets to fund its expanded capital return program.

NWB adds on

Nederlandse Waterschapsbank priced an upsized $600 million add-on to its existing 1.25% notes due Sept. 18, 2017 at mid-swaps plus 2 bps, an informed source said.

The notes were guided in the mid-swaps plus 2 bps area.

Pricing was at 100.579.

The issue’s size is now $2.6 billion, including $500 million priced on Sept. 26, 2014 and $1.5 billion priced on Sept. 9, 2014.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Scotia Capital are the bookrunners for the Rule 144A and Regulation S deal.

The financial services company for the public sector is based in the Hague, the Netherlands.

American Honda upsizes

American Honda Finance sold an upsized $550 million issue of notes (A1/A+/) due May 5, 2017 at Treasuries plus 43 bps, according to a market source.

The notes priced at 99.909 to yield 0.996%.

Pricing was at the tight end of guidance set in the 45 bps area.

Deutsche Bank Securities and Mizuho Securities were the bookrunners.

Proceeds will be used for general corporate purposes.

The U.S. arm of Honda Financial Services is based in Torrance, Calif.

Apple mixed

Bonds from Apple traded mixed in the secondary market on Thursday.

Apple’s 2.5% notes due 2025 traded 5 bps wider at 92 bps bid, according to a market source.

Apple sold $1.5 billion of the notes (Aa1/AA+/) on Feb. 2 at Treasuries plus 85 bps.

The company’s 3.45% notes due 2024 (Aa1/AA+/) edged 1 bp wider to 78 bps bid, according to a market source.

Apple sold $2.5 billion of the 10-year notes at a spread of Treasuries plus 77 bps on April 29, 2014.

Meanwhile, its $1.5 billion of 1.05% notes due 2017 traded flat at 18 bps bid.

The notes priced at 18 bps over Treasuries on April 29, 2014.

The computer and mobile communications device company is based in Cupertino, Calif.

Banks, brokers CDSs higher

Banks and brokers CDS costs were higher on Thursday, according to a market source.

Bank of America Corp.’s CDS costs were 1 bp higher at 64 bid, 67 offered. Citigroup Inc.’s CDSs were also 1 bp higher at 74 bid, 78 offered. JPMorgan Chase & Co.’s CDSs were 1 bp higher at 62 bid, 66 offered. Wells Fargo & Co. CDS costs were up 1 bp to 42 bid, 46 offered.

Among brokers, Merrill Lynch’s CDS costs rose 1 bp to 67 bid, 70 offered. Morgan Stanley’s CDS rose 1 bp to 75 bid, 79 offered. Goldman Sachs Group Inc. ended 1 bp higher at 84 bid, 88 offered.

Paul Deckelman contributed to this review.

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