Bank of New York Mellon, Manufacturers & Traders price notes; CPPIB, Cades plan deals

By Cristal Cody

Tupelo, Miss., Jan. 22 – High-grade deal action stayed light on Monday with two reported issuers as a government shutdown loomed over financial markets.

The shutdown is expected to be short-lived after the House and Senate passed bills on Monday with the government expected to reopen on Tuesday.

Bank of New York Mellon Corp. tapped the primary market with a $1.75 billion two-part offering of notes.

Also, Manufacturers & Traders Trust Co. came with $1 billion of three-year notes in two tranches.

Deal action for Tuesday was beginning to take shape with at least two issuers planning to price notes.

CPPIB Capital Inc. intends to sell three-year dollar-denominated notes during the session.

Caisse d’Amortissement de la Dette Sociale is expected to bring a benchmark sized offering of three-year notes to the market on Tuesday.

Syndicate sources said they expect smaller bank and financial issuance over the week following heavy supply from the major U.S. banks in the previous week.

About $20 billion to $25 billion of deal volume is expected for the week with some desks predicting as little as $15 billion of total issuance.

The Markit CDX North American Investment Grade 29 index closed the day modestly tighter at a spread of 47 basis points.

BNY Mellon sells $1.75 billion

Bank of New York Mellon priced $1.75 billion of series J senior medium-term notes notes (A1/A/AA-) in two tranches on Monday, a source said.

The bank sold $1 billion of 2.95% five-year notes on the tight side of guidance at a spread of 53 bps over Treasuries.

Bank of New York Mellon placed $750 million of 3.4% 10-year notes at a Treasuries plus 75 bps spread. The notes priced on the tight side of talk.

Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and BNY Mellon Capital Markets LLC were the bookrunners.

Bank of New York Mellon is a financial products and services company based in New York.

Manufacturers Trust prices

In the other new offering on Monday, Manufacturers & Traders Trust (A3/A/) sold $1 billion of three-year notes in fixed- and floating-rate tranches, a market source said.

The company priced $350 million of floating-rate notes due Jan. 25, 2021 at Libor plus 27 bps.

Manufacturers & Traders Trust sold $650 million of 2.625% three-year fixed-rate notes at a spread of 47 bps over Treasuries.

Barclays, Morgan Stanley and UBS Securities LLC were the lead managers.

The Buffalo, N.Y-based trust operates M&T Bank, Inc.

CPPIB readies deal

Coming up on Tuesday, CPPIB Capital (Aaa/AAA/AAA) is expected to price a Rule 144A and Regulation S offering of U.S. dollar-denominated notes due Jan. 30, 2021, according to a market source.

The three-year notes were initially talked to price with a spread in the mid-swaps plus 9 bps area.

Barclays, BNP Paribas Securities Corp., Citigroup Global Markets and TD Bank Securities (USA) LLC are the bookrunners.

CPPIB Capital is a Toronto-based investment management company for the Canada Pension Plan Investment Board.

Cades price talk

Also on Tuesday, Caisse d’Amortissement de la Dette Sociale intends to price a benchmark sized offering of U.S. dollar-denominated notes due Jan. 29, 2021, according to a market source.

The notes were initially talked to price in the mid-swaps plus 14 bps area.

Barclays, HSBC Securities (USA) Inc. and SG Americas Securities, LLC are the lead managers.

The French debt agency also known as Cades is based in Paris.

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