U.S. Bancorp, U.S. Bank, Sydney Airport tap market; Morgan Stanley, Anheuser-Busch active

By Cristal Cody

Eureka Springs, Ark., April 21 – Banks and financials continued to dominate the high-grade primary market on Thursday for a second straight session.

U.S. Bancorp sold $1 billion of 10-year subordinated medium-term notes a day after the company reported that first quarter earnings slipped but revenue rose modestly.

Its U.S. Bank NA unit placed $1.5 billion of fixed-rate and floating-rate three-year notes in two tranches during the session.

Sydney Airport Finance Co. Pty Ltd. was in the primary market with a $900 million offering of 10-year notes.

Details emerged on a $3.5 billion four-tranche offering of notes from Goldman Sachs Group Inc.

Credit Agricole SA (London Branch) also brought a $1.4 billion two-part sale of notes.

In addition, Wells Fargo & Co. priced a $500 million reopening of its 3% 10-year senior notes.

Primary action is expected to be quiet on Friday.

“It’s been a light week, it will probably be quiet the rest of the week here,” a source said.

The Markit CDX North American Investment Grade index eased 1 basis point over the day to a spread of 74 bps.

In the secondary market, Morgan Stanley & Co. Inc.’s 3.875% notes due 2026 were among the day’s mostly heavily traded, a market source said. The notes were seen going out 2 bps softer.

Anheuser-Busch InBev Finance Inc.’s 3.65% senior notes due 2026 also were active and traded 1 bp better on the day.

U.S. Bancorp prices $1 billion

U.S. Bancorp sold $1 billion of 3.1% 10-year subordinated medium-term notes (A1/A-/AA-) at 99.923 to yield 3.109% on Thursday, according to a market source and a FWP filing with the Securities and Exchange Commission.

The company priced the series W notes due April 27, 2026 with a spread of Treasuries plus 123 bps. The notes were talked to price at Treasuries plus 125 bps, plus or minus 2 bps.

U.S. Bancorp Investments, Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC were the bookrunners.

U.S. Bancorp is a financial services holding company based in Minneapolis.

U.S. Bank sells three-year notes

U.S. Bank placed $1.5 billion of three-year notes (/AA-/AA) in two tranches on Thursday, according to a market source.

The company priced $250 million of floating-rate notes at Libor plus 41 bps.

U.S Bank sold $1.25 billion of 1.4% notes due April 26, 2019 with a spread of Treasuries plus 50 bps, on the tight side of guidance of 50 bps to 55 bps over Treasuries.

Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and U.S. Bank were the bookrunners.

The bank is based in Cincinnati.

Goldman prices four tranches

Goldman Sachs Group raised $3.5 billion in a four-part offering of three- and five-year fixed- and floating-rate notes (A3/BBB+/A) in Wednesday’s sale, according to a market source.

The final book size on the deal was $13.5 billion, or a bid-to-cover ratio of 3.86 times.

The company priced $500 million of floating-rate notes due April 25, 2019 at par to yield a spread of Libor plus 104 basis points.

Goldman sold $500 million of 2% fixed-rate notes due April 25, 2019 at 99.722 to yield 2.096%, or a spread of Treasuries plus 113 bps.

The $1 billion tranche of floating-rate notes due April 23, 2021 pried at par with a spread of Libor plus 136 bps.

In the final tranche, Goldman sold $1.5 billion of 2.625% notes due April 25, 2021 at 99.935 to yield 2.639%. The notes priced with a spread of Treasuries plus 133 bps.

Goldman, Sachs & Co. was the bookrunner.

The financial services company is based in New York City.

Credit Agricole raises $1.4 billion

Credit Agricole SA (London Branch) sold $1.4 billion of notes (A2//A) in two tranches, according to details from a market source.

The bank priced $400 million of five-year floating-rate notes at Libor plus 118 bps.

Credit Agricole sold $1 billion of 2.375% notes due July 1, 2021 at a spread of Treasuries plus 115 bps, on the tight side of guidance of 115 bps to 120 bps.

Credit Agricole Securities (USA) Inc. was the bookrunner.

The London-based bank is a subsidiary of Credit Agricole SA.

Wells Fargo taps 10-year notes

Wells Fargo priced a $500 million reopening of its 3% 10-year senior notes at 99.205 on Wednesday, according to a market source and a 424B2 filing with the Securities and Exchange Commission.

The notes due April 22, 2026 (A2/A/AA-) priced with a spread of 125 bps over Treasuries.

Wells Fargo originally sold $3 billion of the notes on Friday at 99.657 to yield 3.04%, or a spread of Treasuries plus 130 bps.

The total outstanding is $3.5 billion.

Wells Fargo Securities, LLC was the bookrunner.

San Francisco-based Wells Fargo provides retail, commercial and corporate banking services.

BOC Aviation sells $750 million

BOC Aviation sold $750 million of 3.875% senior notes due April 27, 2026 at Treasuries plus 215 bps, according to a market source.

The notes (/BBB+/A-) priced on the tight side of guidance of 215 bps to 220 bps over Treasuries.

BOC, Citigroup Global Markets Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp. and Wells Fargo Securities, LLC were the lead managers.

Proceeds will be used for capital expenditures and general corporate purposes.

BOC Aviation is a global aircraft leasing company based in Singapore.

Sydney Airport prints $900 million

Sydney Airport Finance priced $900 million of 3.625% 10-year notes at 175 bps over Treasuries on Thursday, according to a market source.

The notes due April 28, 2026 (Baa2//BBB) priced on the tight side compared to guidance of 180 bps, plus or minus 5 bps.

ANZ Securities, Inc., BofA Merrill Lynch, J.P. Morgan Securities LLC and Scotia Capital (USA) Inc. were the bookrunners.

Sydney Airport Finance operates the Sydney Airport in Australia.

Morgan Stanley eases

In the secondary market Morgan Stanley’s 3.875% notes due 2026 eased 2 bps to 158 bps bid on Thursday in heavy secondary trading, according to market sources.

Morgan Stanley sold $3 billion of the notes (A3/BBB+/A) on Jan. 22 at a spread of 185 bps over Treasuries.

The financial services company is based in New York City.

Anheuser-Busch firms

Anheuser-Busch’s 3.65% notes due 2026 firmed 1 bp over the day to 118 bps bid, a market source said.

The company sold $11 billion of the 10-year notes (A2/A-) on Jan. 13 at Treasuries plus 160 bps.

The brewery is based in Leuven, Belgium.

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