By Andrea Heisinger
New York, Feb. 2 - Fannie Mae priced $5.5 billion of 0.375% three-year Benchmark Notes to yield Treasuries plus 15.5 basis points, according to a press release on Thursday.
The sale had been announced at benchmark size on Wednesday and was priced in line with talk of 15.5 bps over Treasuries, a trader said.
The notes were priced at 99.744 to yield 0.458%.
The new paper was trading slightly tighter at about 15 bps bid, 14.5 bps offered, the trader said.
"There's pretty good demand in the three-year [maturity] bucket," he added. "From what I understand it was well-received and price tightened half a [basis point]. Any time you're able to sell $5.5 billion of something, it shows there's pretty good demand out there."
The bonds were mostly bought by U.S. investors, which made up almost 65% of the books, followed by 26.4% from countries outside of Europe or Asia. Fund managers bought 57.4% of the paper, followed by central banks at 32.7% of the books.
BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the bookrunners.
Co-managers were CastleOak Securities LP, Citigroup Global Markets Inc., Drexel Hamilton LP, FTN Financial Capital Markets, J.P. Morgan Securities LLC and UBS Securities LLC.
The government-backed home mortgage lender is based in Washington, D.C.
| Issuer: | Fannie Mae
|
| Issue: | Benchmark Notes
|
| Amount: | $5.5 billion
|
| Maturity: | March 16, 2015
|
| Bookrunners: | BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc.
|
| Co-managers: | CastleOak Securities LP, Citigroup Global Markets Inc., Drexel Hamilton LP, FTN Financial Capital Markets, J.P. Morgan Securities LLC, UBS Securities LLC
|
| Coupon: | 0.375%
|
| Price: | 99.744
|
| Yield: | 0.458%
|
| Spread: | Treasuries plus 15.5 bps
|
| Trade date: | Feb. 2
|
| Settlement date: | Feb. 6
|
| Price talk: | 15.5 bps
|
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