CA prices $850 million; primary action thins; Libor yield highest since 2009 following hike

By Cristal Cody

Tupelo, Miss., March 15 – CA, Inc. sold $850 million of senior notes in two tranches on Wednesday as the lone issuer in the high-grade bond market with attention mostly focused on the Federal Reserve’s meeting.

The Federal Reserve raised the benchmark interest rate to a range of 0.75% to 1% with plans for two more increases in 2017.

The three-month Libor yield rose 1 basis point to 1.13% early in the day and hit 1.148% following the Fed decision, the highest yield since April 2009, sources said.

The Markit CDX North American Investment Grade index tightened 3 bps over the session to a spread of 63 bps.

In other activity, Investar Holding Corp. announced plans to price an offering of subordinated notes.

Coming up on Thursday, the Ford Foundation is expected to price $280 million offering of 30-year 3(a)4 exempt taxable bullet bonds talked to price in the Treasuries plus 85 bps area.

Looking at the secondary market, Verizon Communications Inc.’s 4.125% notes due March 16, 2027 traded more than 1 point better on the day.

CA prices two tranches

CA sold $850 million of senior notes (Baa2/BBB+/BBB+) in two tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company placed $500 million of 3.6% notes due Aug. 15, 2022 at 99.91 to yield 3.619%. The notes priced with a spread of Treasuries plus 150 bps.

CA also sold $350 million of 4.7% 10-year notes at par to yield Treasuries plus 212.5 bps.

Both tranches priced on the tight side of talk.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, Barclays and Citigroup Global Markets Inc. were the bookrunners.

Proceeds will be used for general corporate purposes.

CA is an Islandia, N.Y.-based information technology company.

Investar markets notes

Investar Holding announced on Wednesday the company is offering subordinated notes and $30 million of common stock.

Sandler O'Neill + Partners, LP is the bookrunner.

Proceeds from the notes offering will be used to fund a portion of the purchase price of its merger with Citizens Bancshares, Inc. and for general corporate purposes, including investments in Investar Bank.

Baton Rouge, La.-based Investar Holding is the parent holding company of Investar Bank.

Verizon stronger

Verizon Communications’ 4.125% notes due March 16, 2027 climbed to 101.23 in secondary trading on Wednesday afternoon, according to a market source.

The notes (Baa1/BBB+/A-) were seen early Wednesday at 99.51 and last traded on Tuesday at 99.41.

Verizon sold $3.25 billion of the 10-year notes on Monday at 99.256 and a spread of Treasuries plus 160 bps.

The telecommunications company is based in New York City.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.