Truist Financial Corp. is pricing a $1.75 billion bond offering with strong demand on Wednesday, a source in the bond market told MarketWatch.
Truist Financial (TFC) is expected to price the notes maturing Oct. 30, 2029, about 225 basis points over the 5-year Treasury BX:TMUBMUSD05Y yield of about 4.9% on Wednesday.
Initial price talk was around 255 basis points but the spread tightened in a sign of healthy appetite for the debt. The Truist bond offering attracted about $8 billion in orders, in a sign of robust demand, the source said.
Truist bonds have also been drawing in more investors in the past 10 days than sellers in a reflection of interest in its corporate bonds.
Spreads on existing Truist debt have tightened or flattened in the days just before the bond offering in a sign of stability ahead of its debt issuance (see chart below).
Spreads on six separate bonds from Truist have flattened or tightened as the bank readied its latest bond offering
BondCliQ Media Services
Truist's stock rose by 0.8% on Wednesday.
Prior to Wednesday's offering, Truist issued $6.3 billion of fixed-to-floating rate senior notes with interest rates ranging from 4.78% and 6.05% due from June 8, 2027, to June 8, 2034, during the six months ended June 30, the company said in a filing.
Truist has typically issued debt three times a year since the company was formed in December 2019, after BB&T and SunTrust Banks closed their merger deal.