American Express, BlackRock hit primary market; BlackRock notes tighten; bonds widen

By Cristal Cody and Aleesia Forni

Virginia Beach, March 13 - American Express Credit Corp., BlackRock Inc. and Royal Bank of Canada brought new deals to Thursday's high-grade market, adding $3.6 billion to the week's total supply.

American Express Credit priced a $2.25 billion sale of senior notes in fixed- and floating-rate tranches due 2019.

The company sold $1 billion of floaters at par to yield Libor plus 55 basis points and $1.25 billion of 2.125% notes at Treasuries plus 65 bps.

The notes priced at the tight end of talk.

BlackRock came to market with a $1 billion issue of 3.5% 10-year notes at Treasuries plus 87.5 bps.

The notes priced in line with talk, which was unchanged from earlier guidance.

Also on Thursday, Royal Bank of Canada sold a $400 million issue of 1.17% three-year senior global medium-term notes (Aa3/AA-/AA), series F at par.

The session also saw Landwirtschaftliche Rentenbank announce price talk for its planned $500 million issue of seven-year notes at mid-swaps plus 15 bps, according to an informed source.

Mizuho Financial Group Inc. is planning to start a roadshow on March 17 ahead of a planned 10-year subordinated tier 2 bonds offering.

Investment-grade bonds widened over the day, according to informed sources.

The Markit CDX North American Investment Grade series 21 index eased 2 bps to a spread of 67 bps.

The new issues from BlackRock and American Express Credit priced late in the day with little trading seen in the secondary market as the session closed, according to traders.

"Not seeing either," one trader said.

BlackRock's senior notes due 2024 traded at 85 bps offered, another trader said.

American Express Credit's notes were not immediately seen in aftermarket trading, according to traders.

American Express prices tight

American Express Credit was in the market Thursday with a $2.25 billion sale of senior notes (A2/A-/) in two parts, a market source said.

A $1 billion tranche of five-year floaters priced at par to yield Libor plus 55 bps.

There was also $1.25 billion of 2.125% notes due 2019 priced at 99.811 to yield 2.165%, or Treasuries plus 65 bps.

The notes priced at the tight end of talk.

Bookrunners were BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and RBS Securities Inc.

American Express is a New York-based financial services company.

BlackRock new issue

BlackRock priced $1 billion of 3.5% 10-year senior notes on Thursday at Treasuries plus 87.5 bps, according to a market source.

Pricing was in line with talk.

The notes (A1/A+/) priced at 99.66 to yield 3.54%.

BlackRock's senior notes due 2024 traded at 85 bps offered in the secondary market, a trader said.

BofA Merrill Lynch, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC were the joint bookrunners.

Proceeds will be used for general corporate purposes including the repayment of debt, according to a 424B5 filed with the Securities and Exchange Commission.

The investment management company is based in New York City.

RBC prices $400 million

Royal Bank of Canada priced $400 million of 1.17% three-year senior global medium-term notes (Aa3/AA-/AA), series F, on Thursday at par, according to an FWP filed with the SEC.

Citigroup Global Markets was the bookrunner.

RBC is a Montreal-based financial services company.

Rentenbank sets talk

Rentenbank set price talk for its planned $500 million offering of seven-year notes at mid-swaps plus 15 bps, according to an informed source.

BNP Paribas Securities Corp., Citigroup Global Markets and Deutsche Bank Securities are managing the Regulation S sale.

The German development agency for agribusiness is based in Frankfurt.

Mizuho eyes tier 2 bonds

Mizuho Financial Group has scheduled a roadshow to begin March 17 ahead of a planned 10-year issue of subordinated tier 2 bonds (/BBB+/BBB), according to market sources.

The notes will be issued by wholly owned subsidiary Mizuho Financial Group (Cayman) 3 Ltd.

Mizuho Securities, BofA Merrill Lynch, Goldman Sachs & Co. and JPMorgan are managing the Rule 144A and Regulation S sale.

Mizuho Financial is based in Tokyo.

Bank/brokerage CDS rise

Investment-grade bank and brokerage CDS prices rose, according to a market source.

Bank of America Corp.'s CDS costs eased 3 bps to 71 bps bid, 75 bps offered. Citigroup Inc.'s CDS costs rose 2 bps to 82 bps bid, 86 bps offered. JPMorgan Chase & Co.'s CDS costs eased 1 bp to 63 bps bid, 67 bps offered. Wells Fargo & Co.'s CDS costs rose 2 bps to 42 bps bid, 46 bps offered.

Merrill Lynch's CDS costs widened 3 bps to 73 bps bid, 77 bps offered. Morgan Stanley's CDS costs rose 3 bps to 94 bps bid, 98 bps offered. Goldman Sachs Group, Inc.'s CDS costs widened 3 bps to 98 bps bid, 102 bps offered.

Paul Deckelman contributed to this review.

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