KeyCorp prices $450 million preferreds; steady bond supply eyed; Walmart notes firm

By Cristal Cody

Tupelo, Miss., April 22 – KeyCorp priced an upsized $450 million of 5.625% $25-par perpetual non-cumulative redeemable preferred stock on Monday in the day’s sole reported investment-grade offering.

Activity stayed fairly quiet over the session with several financial markets including in Europe closed for Easter Monday observance, sources report.

The Markit CDX North American Investment Grade 32 index softened modestly over the day to a spread of 57 basis points.

The week is expected to see a seasonal $15 billion to $25 billion of issuance, according to a BofA Merrill Lynch report released on Friday.

Corporate issuers priced about $19 billion of investment-grade bonds last week ahead of the early U.S. market close on Thursday and Good Friday holiday.

Bank and financial supply was in focus in the past week.

The four largest U.S. banks issued $8.75 billion of dollar-denominated notes, €1 billion of euro-denominated notes and C$1 billion of Canadian dollar-denominated notes following first quarter earnings reports last week, BofA Merrill Lynch analysts note in the note.

In the secondary market, financial paper traded mostly flat to softer on Monday, a source said.

Walmart Inc. 3.25% notes due July 8, 2029 priced last week tightened 2 bps.

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