High-grade primary market quiet; pipeline builds; bank, financial paper mixed; Citibank firms

By Cristal Cody

Tupelo, Miss., May 18 – Investment-grade issuers stayed on the sidelines on Thursday with no supply priced over the session as attention remains focused on the White House, sources report.

Pricing action is expected to pick up before the Memorial Day holiday slowdown.

Export Development Canada intends to hold global investor calls on Monday for an upcoming deal.

Ascension Health Alliance is marketing a $220 million reopening of its 3.945% senior bonds due Nov. 15, 2046.

Also, Becton, Dickinson and Co. (Baa2/BBB+/BBB-) is holding fixed-income investor calls on Thursday and Friday for an upcoming dollar- and euro-denominated senior notes offering.

Financial paper was mixed in the secondary market on Thursday.

Citibank, NA’s 2% notes due March 20, 2019 firmed 2 basis points.

BB&T Corp.’s 2.75% senior medium-term notes due April 1, 2022 eased 2 bps.

Mitsubishi UFJ Financial Group, Inc.’s 3.677% senior notes due Feb. 22, 2027 softened about 5 bps.

The Markit CDX North American Investment Grade index recovered about 1 bp on Thursday to close at a spread of 64 bps. Credit spreads widened more than 3 bps on Wednesday.

EDC plans deal

Export Development Canada (Aaa/AAA) plans to hold global investor calls on Monday for an upcoming dollar-denominated three-year global green bond offering, according to a market source.

HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and SEB are arranging the calls.

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

Ascension Health to reopen

Ascension Health Alliance plans to price a $220 million add-on to its 3.945% senior bonds due Nov. 15, 2046 (Aa2/AA+), according to a market source on Thursday.

Morgan Stanley & Co. LLC is the bookrunner.

The company sold $700 million of the bonds on April 26, 2016 at spread of Treasuries plus 122 bps.

Ascension Health is a St. Louis-based nonprofit health care system.

Citibank improves

Citibank’s 2% notes due March 20, 2019 tightened 2 bps on Thursday to 54 bps bid, according to a market source.

Citibank sold $1.5 billion of the notes (A1/A+/) on March 13 at a spread of Treasuries plus 67 bps.

The commercial and consumer banking products and services company is based in Sioux Falls, S.D.

BB&T eases

BB&T’s 2.75% notes due April 1, 2022 traded about 1 bps wider at 65 bps bid, a market source said.

The company priced $1 billion of the five-year notes (A2/A-/A+) on March 16 at a spread of 75 bps over Treasuries.

The bank and financial services company is based in Winston-Salem, N.C.

MUFG widens

MUFG’s 3.677% notes due Feb. 22, 2027 softened about 5 bps on Thursday to 104 bps bid, a market source said.

The $1 billion tranche of 10-year notes (A1/A/A) priced on Feb. 15 at a Treasuries plus 118 bps spread.

The bank is based in Tokyo.

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