Bank of America, BNY Mellon, PNC, LeasePlan price notes; Toyota prints; flows improve

By Cristal Cody

Tupelo, Miss., Oct. 17 – Bank of America Corp. led volume in the high-grade primary market on Thursday with a $4 billion two-tranche offering of fixed-to-floating-rate senior notes.

Additional bank issuers also were in the primary market.

Bank of New York Mellon Corp. sold $750 million of five-year senior notes.

PNC Bank, NA priced $750 million of 10-year subordinated notes.

In other issuance, LeasePlan Corp. NV priced $750 million of five-year notes on Thursday following its roadshow this week.

Also on Thursday, Toyota Motor Credit Corp. sold $1.55 billion of one-year floating-rate medium-term notes using the SOFR benchmark.

Bank supply has been anticipated following the release of third quarter earnings reports this week.

Bank of America released its third quarter earnings report on Wednesday, while Citigroup Inc. posted its profit results on Tuesday.

On Thursday, Morgan Stanley released its profit report before the financial markets opened.

On Wednesday, Bank of Montreal priced a $500 million inaugural offering of three-year sustainability notes.

Also in the previous session, Citigroup tapped the sterling market with £650 million of seven-year registered senior notes.

More than $11 billion of high-grade corporate bonds have priced so far this week. Another $3 billion of notes have priced in the sovereign, supranational and agency market week to date.

About $10 billion to $15 billion of issuance was expected by market sources for the Columbus Day holiday-shortened week.

Lipper US Fund Flows reported corporate investment-grade funds inflows jumped to $2.89 billion in the week ended Wednesday from $1.84 billion in the previous week.

The Markit CDX North American Investment Grade 33 index closed the day modestly tighter at a spread of 55.7 basis points.

Bank of America sells $4 billion

Bank of America sold $4 billion of fixed-to-floating-rate senior notes (A2/A-/A+) in two tranches on Thursday, according to a market source.

The bank priced $2 billion of 2.456% green fixed-to-floaters due Oct. 22, 2025 at a spread of Treasuries plus 88 bps, tighter than initial talk in the 105 bps spread area.

The notes will reset in October 2024 to a floating rate of Libor plus 87 bps.

In a separate offering, Bank of America sold $2 billion of 2.884% fixed-to-floating-rate senior notes due Oct. 22, 2030 at a Treasuries plus 113 bps spread. The notes will reset to a floating rate of Libor plus 119 bps after the initial fixed-rate period.

The 2030 notes were initially talked to price with a spread in the 130 bps area.

BofA Securities Inc. was the bookrunner.

Proceeds from the green notes will be used for renewable energy projects, while proceeds from the second tranche of notes will be used for general corporate purposes, including debt repayment.

The financial services company is based in Charlotte, N.C.

BNY Mellon prices $750 million

Bank of New York Mellon priced $750 million of 2.1% five-year senior notes (A1/A/AA-) on Thursday at 99.825 to yield 2.137%, or a spread of Treasuries plus 57 bps, according to an FWP filing with the Securities and Exchange Commission.

BofA Securities, Mizuho Securities USA Inc., UBS Securities LLC and BNY Mellon Capital Markets LLC were the bookrunners.

Bank of New York Mellon is a financial products and services company based in New York.

PNC sells subordinated notes

PNC Bank priced $750 million of 2.7% 10-year subordinated notes (A3/A-/A) on Thursday at a spread of Treasuries plus 100 bps, according to a market source.

The notes were initially talked in the Treasuries plus 120 bps area.

Barclays, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and PNC Capital Markets LLC were the bookrunners.

PNC Bank is a subsidiary of PNC Financial Services Group, Inc., a Pittsburgh, Penn.-based financial services holding company.

LeasePlan brings deal

LeasePlan (Baa1/BBB-/BBB+/) priced $750 million of 2.875% five-year notes in a Rule 144A- and Regulation S-eligible offering on Thursday at a spread of 135 bps over Treasuries, according to a market source.

The notes were initially talked to price in the 155 bps over Treasuries spread area.

Citigroup Global Markets, Deutsche Bank Securities Inc., HSBC Bank plc and J.P. Morgan Securities LLC were the bookrunners.

LeasePlan is an Amsterdam, Netherlands-based automobile leasing company.

Toyota Motor Credit sells floaters

Toyota Motor Credit priced $1.55 billion of one-year floating-rate medium-term notes (Aa3/AA-/) on Thursday at par to yield SOFR plus 40 bps, according to an FWP filing.

Morgan Stanley and Toyota Financial Services Securities USA Corp. were the bookrunners.

Toyota Motor Credit is a Torrance, Calif.-based financing arm and subsidiary of Toyota Motor Corp.

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