At least five companies tapped the public debt markets on Monday, including two banks with new issues guaranteed by the federal government.
American Express Co. trotted out the largest issue, a $5.25-billion, three-part debt sale that will be backed by the Federal Deposit Insurance Corp., according to Reuters. The sale includes $500 million in two-year floating-rate notes expected to price at about 85 basis points over the one-month London interbank offered rate; $1.25 billion in three-year floating rate notes expected to price at around 98 basis points over one-month Libor; and $3.5 billion in three-year fixed rate debt, expected to yield around 88 basis points over mid-swaps.
Regions Bank, part of Regions Financial, sold $3.5 billion in a four-part debt sale that will be guaranteed by the FDIC.
And in a sale not guaranteed by the government, Shell International Finance B.V., a subsidiary of Royal Dutch Shell Plc, sold $2.75 billion of 30-year senior notes, priced to yield 6.415 percent, 325 basis points over comparable Treasuries. The issue was rated Aa1 by Moody’s and AA-plus by S&P.
General Dynamics Corp. sold $1 billion in five-year notes, priced to yield 5.354 percent, or 365 points over Treasuries. The issue was rated A2 by Moody’s and Single-A by S&P.
And Wisconsin Electric sold $250 million of seven-year senior notes. The A1/A-minus issue was priced to yield 6.261 percent, 425 points over Treasuries.
On Friday, – Harvard College sold $1.5 billion of three-part debt in the private placement market.