GE Capital, Total Capital bring new deals to primary; GE firms; Total Capital mixed in trading

By Cristal Cody and Aleesia Forni

Virginia Beach, Jan. 8 - The high-grade primary was slightly less active on Wednesday compared to earlier this week, though General Electric Capital Corp. and Total SA did tap the market to price $5.5 billion during the session.

"The focus was mostly on the [Federal Open Market Committee] minutes," one market source said.

General Electric Capital sold the day's largest deal, bringing $3 billion of senior notes in three tranches.

The company priced $1.5 billion of two-year floaters at par to yield Libor plus 23 basis points and $1 billion of 2.3% five-year notes at Treasuries plus 57 bps.

A third tranche was $500 million of five-year floating-rate notes priced at par to yield Libor plus 51 bps.

Total Capital International, a wholly owned subsidiary of Total SA, came to market to price a $2.5 billion three-part issue of senior notes, according to a market source and an FWP filing with the Securities and Exchange Commission.

Total priced $500 million of 1% three-year notes at Treasuries plus 25 bps and $750 million of 2.125% five-year notes at 45 bps over Treasuries.

There was also a $1.25 billion tranche of 3.75% 10-year notes due 2024 sold at 85 bps over Treasuries.

In other market action, Toyota Motor Credit Corp. sold $1.5 billion of two-year floaters at par to yield Libor flat.

Looking to the session ahead, Fannie Mae announced plans to issue Benchmark Notes due Feb. 19, 2019.

The notes are being talked at Treasuries plus 20.5 bps and are expected to price on Thursday.

International Bank for Reconstruction and Development (World Bank) set talk for its planned benchmark offering of five-year dollar-denominated notes in the mid-swaps plus 5 bps area.

Nearly $18 billion of U.S. high-grade paper has priced so far this week. Sources had predicted around $20 billion of supply.

"We could certainly top that [estimate]," one market source said on Wednesday.

Spreads continued to widen over the day, according to market sources.

The Markit CDX North American Investment Grade series 21 index eased 1 bp to a spread of 65 bps.

General Electric Capital's 2.3% notes due 2019 firmed 2 bps in aftermarket trading, a source said.

Total Capital's three-part offering traded mostly flat. The company's tranche of 3.75% notes due 2024 eased 2 bps as the market closed, a trader said.

GE Capital three-parter

General Electric Capital priced $3 billion of senior notes (A1/AA+/) in three tranches on Wednesday, according to an informed source.

The company priced $1.5 billion of two-year floaters at par to yield Libor plus 23 bps.

There was also $1 billion of 2.3% five-year notes priced with a spread of Treasuries plus 57 bps.

A third tranche was $500 million of five-year floating-rate notes priced at par to yield Libor plus 51 bps.

In the secondary market, General Electric Capital's 2.3% notes due 2019 firmed to 55 bps bid, 54 bps offered, a trader said.

Full details were not available at press time.

The funding arm of General Electric Co. is based in Norwalk, Conn.

Total Capital new issue

Total Capital International sold $2.5 billion of senior notes (Aa1/AA-/) in three tranches, according to a market source and an FWP filing with the SEC.

The sale included $500 million of 1% notes due 2017 priced with a spread of Treasuries plus 25 bps, or 99.78, to yield 1.075%.

A second tranche was $750 million of 2.125% five-year notes, which sold at 45 bps over Treasuries. The notes priced at 99.606 to yield 2.209%.

There was also a $1.25 billion tranche of 3.75% notes due 2024. Pricing was at 99.249 to yield 3.838%, or Treasuries plus 85 bps.

All of the tranches priced at the tight end of price talk.

Total Capital's 1% notes due 2017 traded flat at 25 bps bid, 21 bps offered in the secondary market, a trader said.

The 2.125% notes due 2019 traded unchanged on the bid side at 45 bps bid, 43 bps offered. The tranche of 3.75% notes due 2024 eased to 87 bps bid, 85 bps offered.

Barclays, BNP Paribas Securities Corp., Goldman Sachs & Co., SG Americas Securities LLC and J.P. Morgan Securities LLC are the joint bookrunners.

Proceeds will be used for general corporate purposes.

The oil and gas company's notes are guaranteed by parent company Total SA, which is based in Courbevoie, France.

Toyota prices floaters

Toyota Motor Credit priced $1.5 billion of series B floating-rate medium-term notes (Aa3/AA-/) due Jan. 14, 2015 on Wednesday at par to yield Libor flat, according to an FWP filing with the SEC.

Deutsche Bank Securities Inc. and JPMorgan were the agents.

The U.S. funding arm of Toyota is based in Torrance, Calif.

Fannie Mae plans sale

Fannie Mae is planning to issue Benchmark Notes due Feb. 19, 2019 on Thursday, market sources said.

The notes are being talked at Treasuries plus 20.5 bps.

The issue will settle on Jan. 13.

Barclays, JPMorgan and Nomura Securities International, Inc. are the joint lead managers.

Co-managers are Blaylock Robert Van, BNP Paribas Securities, FTN Financial Capital Markets, Loop Capital Markets LLC and Mischler Financial Group.

The government-backed mortgage lender is based in Washington, D.C.

World Bank eyes five-years

World Bank is planning to price a benchmark offering of five-year dollar-denominated notes, according to an informed source.

The notes are whispered in the mid-swaps plus 5 bps area.

Citigroup Global Markets Inc., JPMorgan and RBC Capital Markets LLC are the joint bookrunners.

World Bank was last in the U.S. bond market pricing $6 billion of notes (Aaa/AAA/) in two tranches on Oct. 24.

The company sold $3 billion of 0.375% two-year notes with a spread of Treasuries plus 7 bps and $3 billion of 2.125% seven-year notes at Treasuries plus 27 bps.

The issuer is based in Washington, D.C.

Bank/brokerage CDS costs rise

Investment-grade bank and brokerage CDS prices rose, according to a market source.

Bank of America Corp.'s CDS costs eased 3 bps to 78 bps bid, 81 bps offered. Citigroup Inc.'s CDS costs rose 2 bps to 70 bps bid, 73 bps offered. JPMorgan Chase & Co.'s CDS costs eased 2 bps to 67 bps bid, 70 bps offered. Wells Fargo & Co.'s CDS costs rose 1 bp to 39 bps bid, 42 bps offered.

Merrill Lynch's CDS costs widened 3 bps to 79 bps bid, 86 bps offered. Morgan Stanley's CDS costs eased 2 bps to 85 bps bid, 90 bps offered. Goldman Sachs Group, Inc.'s CDS costs eased 1 bp to 91 bps bid, 94 bps offered.

Paul Deckelman contributed to this review.

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