JPMorgan, Nordic Investment Bank, Brinker price as primary action slows; S&P Global improves

By Cristal Cody

Eureka Springs, Ark., Sept. 20 – More than $4 billion of high-grade bonds priced on Tuesday with activity slowing ahead of the conclusion of monetary policy meetings from the Federal Reserve and Bank of Japan on Wednesday.

JPMorgan Chase Bank NA brought $3 billion of senior notes in four tranches.

New issuance also included a $1 billion sale of two-year global notes from Nordic Investment Bank.

Brinker International, Inc. tapped the primary markets with a $350 million offering of split-rated non-callable eight-year senior notes.

The Markit CDX North American Investment Grade 27 index rolled to a new series and closed 7 basis points wider at a spread of 82 bps on Tuesday.

In the secondary market, S&P Global Inc.’s 2.95% senior notes due 2027 traded about 2 bps better than issuance earlier in the day. The notes priced Monday.

JPMorgan sells $3 billion

JPMorgan Chase Bank brought $3 billion of senior notes in four tranches to the primary market on Tuesday, a source said.

JPMorgan sold $1 billion of two-year floating-rate notes at Libor plus 45 bps.

The company priced $500 million of 1.45% two-year notes at a spread of 70 bps plus Treasuries.

JPMorgan sold $500 million of three-year floating-rate notes at Libor plus 59 bps.

The $1 billion tranche of 1.65% three-year notes priced with a spread of 77 bps plus Treasuries.

The fixed-rate notes priced on the tight side of guidance.

J.P. Morgan Securities LLC was the bookrunner.

The New York City-based consumer and commercial bank is a subsidiary of JPMorgan Chase & Co.

Nordic Investment Bank prices

Nordic Investment Bank sold $1 billion of two-year global notes (Aaa/AAA/) at 99.763 on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

HSBC Bank plc, JPMorgan and Nomura International plc were the bookrunners.

The bank plans to list the notes on the regulated market of the Luxembourg Stock Exchange.

Nordic Investment Bank is an international financial institution owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden.

Brinker sells eight-year notes

Brinker International priced a $350 million issue of split-rated non-callable eight-year senior notes (Baa3/BB+/BBB-) at par to yield 5% on Tuesday, according to a market source.

The yield printed on top of yield talk.

JPMorgan, BofA Merrill Lynch and Wells Fargo Securities LLC managed the sale.

The Dallas-based casual dining restaurant company plans to use the proceeds to repurchase up to $300 million of its common stock and to repay up to $50 million of outstanding debt under its revolving credit facility, with any remaining proceeds to be used for general corporate purposes.

S&P Global firms

S&P Global’s 2.95% notes due 2027 traded earlier on Tuesday at 133 bps bid in the secondary market, a source said.

S&P Global (Baa1//BBB+) sold $500 million of the notes on Monday at a spread of 135 bps over Treasuries in a Rule 144A/Regulation S private placement transaction.

The notes are guaranteed by subsidiary Standard & Poor's Financial Services LLC.

New York-based S&P Global provides ratings, benchmarks, analytics and data to capital and commodity markets.

Paul A. Harris contributed to this review

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