Issuers await weekend's Greek election outcome; Qwest frees; Alberta tightens in secondary

By Aleesia Forni and Andrea Heisinger

New York, June 15 - The high-grade bond market emptied on Friday ahead of the weekend's elections in Greece and following days filled with a mix of sovereign and corporate deals.

There was $14.881 billion of bonds priced in the past week in 27 deals, according to data compiled by Prospect News. Issuance was similar to the previous week, as expected, which saw $14.552 billion of bonds sold.

The coming week's volume remains unclear, hinging on the outcome of Sunday's elections.

"Assuming the Greek elections go the way they're supposed to - whatever that means - we could be pretty busy," a syndicate source said late Friday.

"We have about seven situations we're looking at."

A source at another desk agreed that there could be "good volume," but neither would give a range of how much new paper could be seen in the primary.

Estimates of previous weeks have been between $10 billion and $15 billion.

"This is one of those things where we know something is going to happen over the weekend, but we don't know what," the second syndicate source said.

"Companies are definitely sitting on their hands waiting."

Qwest frees from syndicate

Qwest's new 7% $25-par senior notes due 2072 freed up on Friday after pricing - and doubling in size - on Thursday.

The trader quoted the issue at $24.92 bid, $24.95 offered.

The Monroe, La.-based telecommunications provider will apply to list the notes on the New York Stock Exchange.

Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., UBS Securities LLC and Wells Fargo Securities LLC were bookrunners.

Qwest is using proceeds from the sale to redeem its 7.5% notes due 2051 (NYSE: CTW). The issue closed down a penny at $26.01.

Alberta tightens in secondary

The recent $600 million of 1% notes from Province of Alberta traded at 27 bps bid on Friday, according to a market source.

Alberta sold the five-year notes (Aaa/AAA//) on Thursday to yield Treasuries plus 29.45 basis points.

Nova Scotia tightens

In the secondary market, Bank of Nova Scotia's 1.85% notes due 2015 tighten 15 bps on Friday to 69 bps bid, according to a market source.

The bank priced the $1 billion issue at 147 bps over Treasuries in January.

Merrill Lynch tightens

The secondary also saw Merrill Lynch's 6.875% notes due 2018 tighten 23 bps to 399 bps bid near the end of New York's session.

On April 22, 2008, the bank priced $5.5 billion ten-year notes at 320 bps over Treasuries.

Goldman Sachs tightens

Also in the secondary, Goldman Sachs' bond due 2018 widened 4 bps to 425 bps bid.

The bank priced $1.5 billion 6.15% 10-year bonds in April 2008 at Treasuries plus 237.5 bps.

Stephanie N. Rotondo and Cristal Cody contributed to this review

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