Morgan Stanley, AutoZone in market; bank, financial paper flat to better; spreads firm

By Cristal Cody

Eureka Springs, Ark., April 18 – Two high-grade issuers tapped the primary market on Monday, bringing $4.15 billion of bonds.

Market sources expect about $30 billion of issuance for the week.

Morgan Stanley sold $3.5 billion of series F five-year global medium-term senior notes (A3/BBB+/A) in two tranches, according to a market source and an FWP filing with the Securities and Exchange Commission.

The $2.5 billion tranche of 2.5% notes due April 21, 2021 priced at 99.664 to yield 2.572%. The spread was 135 bps over Treasuries.

Morgan Stanley sold $1 billion of floating-rate notes due April 21, 2021 at par to yield Libor plus 140 bps.

Morgan Stanley & Co. LLC was the bookrunner.

AutoZone, Inc. priced $650 million of senior notes (Baa1/BBB/BBB) in two parts.

Investment-grade bank and financial paper traded flat to modestly better earlier in the day.

Bank of America Corp.’s senior notes (Baa1/BBB+/A) were unchanged to about 3 basis points tighter.

Credit Suisse Group Funding (Guernsey) Ltd.’s senior notes due 2026 improved about 1 bp from Friday.

Wells Fargo & Co.’s new 3% senior notes due 2026 were unchanged.

The Markit CDX North American Investment Grade index opened soft on Monday but ended the session 2 bps tighter at a spread of 78 bps.

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