Citibank, Coach, Sempra Energy, Harley-Davidson Financial price notes; credit spreads soften

By Cristal Cody

Tupelo, Miss., June 6 – High-grade companies priced more than $5 billion of bonds over the session on Tuesday.

Citibank, NA came with $2.5 billion of three-year bank notes fixed- and floating-rate tranches.

Citibank sold $500 million of floating-rate notes due June 12, 2020 at par to yield Libor plus 50 bps and $2 billion of 2.1% five-year fixed-rate notes at 99.957 to yield 2.115%, or a spread of Treasuries plus 70 bps.

Coach, Inc. priced a $1 billion two-part offering of senior notes to fund its acquisition of Kate Spade & Co.

The company priced $400 million of 3% five-year notes at 99.505 to yield 3.106% and a spread of 140 bps over Treasuries and $600 million of 4.125% 10-year notes at 99.858 to yield 4.142%, or a Treasuries plus 200 bps spread.

Deals in the energy sector also continued on Tuesday with two new transactions.

Sempra Energy sold $750 million of 10-year senior notes, while Union Electric Co., doing business as Ameren Missouri, priced $400 million of 10-year senior secured notes.

In bank pricing action, KeyBank NA sold $600 million of five-year senior notes on Tuesday.

Also, Harley-Davidson Financial Services, Inc. placed $400 million of five-year senior medium-term notes.

The Markit CDX North American Investment Grade index softened about 1 basis point to close at a spread of 61 bps.

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