IG primary slows; Verisk brings deal; Citi, JPMorgan price fixed-to-floaters

By Rebecca Melvin

New York, Sept. 6 – Investment-grade bonds saw a record week in the primary market. “U.S. IG new issuance continues to dominate with another $20.3 billion priced across 15 deals on Thursday, bringing $74.5 billion across 50 deals in three days, according to Bank of America credit strategists Hans Mikkelsen and Yunyi Zhang in a research note released on Friday.

“While refinancing trades took a breather after two very busy sessions, coming in at $7.5 billion [on Thursday], a number of banks took the baton and issued $9.5 billion for general corporate purposes,” Mikkelsen and Zhang wrote.

Citigroup and JPMorgan Chase & Co., which priced fixed-to-floating notes, and Bank of Montreal, which priced $500 million of floating-rate notes. And Pinnacle Financial Partners Inc. priced $300 million 4.125% fixed-to-floating rate subordinated notes due 2029. Those notes pay 4.125% for the first five years until Sept. 15, 2024, and then a floating-rate equal to Libor plus 277.5 bps.

Also, Jersey City, N.J.-based data analytics provider Verisk Analytics, Inc. (Baa2/BBB/BBB+) priced a $200 million add on to its 4.125% 10-year senior notes.

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