BMW US Capital prices $2.7 billion of notes; light holiday supply on tap

By Cristal Cody

Tupelo, Miss., April 15 – BMW US Capital, LLC priced a $2.7 billion four-part offering of senior notes on Monday as issuance remained light on the U.S. tax day.

Some high-grade supply is expected on Tuesday, one source said.

Deal volume is expected to be light this week with the markets set to close at 2 p.m. ET on Thursday and remain closed on Friday for the Good Friday holiday.

About $10 billion to $15 billion of supply is predicted by syndicate sources for the week.

High-grade volume last week included about $8.5 billion of issuance.

Supply from bank and financial issuance is being eyed following the release of earnings results, according to market sources.

Citigroup Inc. and Goldman Sachs Group, Inc. released earnings reports on Monday, following the release of first-quarter earnings on Friday from JPMorgan Chase & Co. and Wells Fargo & Co.

Bank of America Corp. reports profit results on Tuesday, and Morgan Stanley will release its first-quarter earnings results on Wednesday.

Investment-grade credit spreads improved over the day, while bank and financial paper traded mostly flat to tighter in the secondary market, sources said.

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