Goldman Sachs, National Rural, BPCE bring issues; bonds mixed; Morgan Stanley paper weak

By Aleesia Forni and Cristal Cody

Virginia Beach, Jan. 20 – Goldman Sachs Group Inc., National Rural Utilities Cooperative Finance Corp., BPCE SA and Southwestern Energy Co. priced new bonds on Tuesday, opening the shortened week on a positive note.

Goldman Sachs sold a $3 billion offering of senior notes in three tranches.

All three parts of the sale sold tight of guidance, according to a market source, and the sale attracted an orderbook that was three times oversubscribed.

The session also saw National Rural Utilities Cooperative Finance bring an upsized $900 million two-part offering of collateral trust bonds, both pricing around 10 basis points tight of the midpoint of initial guidance.

Southwestern Energy priced all three tranches of its new $2.2 billion sale at the tight end of talk.

France's BPCE was also in the market, though details of the sale were unavailable at press time.

In forward calendar news, Kommuninvest i Sverige AB, Dexia Credit Local and Third Point Re (USA) Holdings Inc. announced plans to bring new bond offerings to market in the coming sessions.

Bonds were mixed in secondary trading over the session, according to market sources.

Southwest Energy’s tranche of notes due 2020 were active in aftermarket trading, while the other issues were not immediately seen, according to a trader.

Morgan Stanley’s paper (Baa2/A-/A) traded flat to weaker over the day after the investment bank reported lower-than-expected fourth-quarter revenue, according to a market source.

Verizon Communications Inc.’s bonds (Baa1/BBB+/A-) were mostly stable in front of the company’s fourth-quarter earnings report scheduled for release on Thursday, a source said.

The Markit CDX North American Investment Grade series 23 index eased 1 bp to a spread of 73 bps.

Goldman Sachs’ $3 billion

Goldman Sachs Group priced $3 billion of senior notes (Baa1/A-/A) in three parts on Tuesday, a market source said.

There was $300 million of five-year floaters sold at Libor plus 116 bps.

A second tranche was $1 billion of 2.6% five-year notes sold at 135 bps over Treasuries.

Finally, $1.7 billion of 3.5% notes due 170 bps over Treasuries.

Goldman Sachs & Co. is the bookrunner.

Proceeds will be used for general corporate purposes.

The financial services company is based in New York City.

Southwestern’s three-parter

Southwestern Energy priced $2.2 billion of senior notes (Baa3/BBB-/) in three tranches on Tuesday, according to a market source.

The company priced $350 million of 3.3% three-year notes with a spread of 248 bps over Treasuries.

There was also $850 million of 4.05% notes due 2020 sold at 278 bps over Treasuries.

Finally, $1 billion of 4.95% notes due 2025 sold at 318 bps over Treasuries.

The bookrunners include BofA Merrill Lynch, RBS Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BBVA, Credit Agricole, MUFG, Mizuho Securities, RBC Capital Markets LLC and SMBC Nikko.

Proceeds will be used to repay amounts outstanding under the company’s bridge facility and a portion of its revolving credit facility.

In the secondary market, Southwest Energy’s tranche of notes due 2020 traded at 275 bps bid, 265 bps offered, a trader said.

Southwestern Energy is a Houston-based independent natural gas and oil company.

National Rural upsizes

National Rural Utilities was in Tuesday’s market with an upsized $900 million two-part offering of collateral trust bonds, according to a market source and two separate FWP filings with the Securities and Exchange Commission.

The issue was upsized from an expected $700 million deal.

The sale included $400 million of 2% five-year bonds priced at 99.792 to yield 2.044%, or Treasuries plus 75 bps.

Pricing was at the tight end of the Treasuries plus 80 bps area talk, having firmed from initial guidance in the 85 bps area over Treasuries.

There was also $500 million of 2.85% 10-year notes priced at 99.939 to yield 2.857%, or Treasuries plus 105 bps.

The notes sold at the tight end of talk, which was set in the 110 bps area over Treasuries, tightened from guidance set in the Treasuries plus 115 bps area.

JPMorgan, MUFG, RBC Capital Markets, Scotia Capital and SunTrust Robinson Humphrey Inc. were the bookrunners.

Proceeds will be used for general corporate purposes, including repayment of short-term debt, primarily consisting of commercial paper.

The market lender for electric cooperatives is based in Herndon, Va.

Kommuninvest sets talk

Kommuninvest set price talk for a planned three-year offering of notes (Aaa/AAA/AAA) in the mid-swaps plus 4 bps area, an informed source said.

BNP Paribas Securities Corp., Citigroup Global Markets, Deutsche Bank Securities Inc. and Nordea are the bookrunners for the Rule 144A and Regulation S deal.

Kommuninvest offers funding to municipalities of Sweden and is based in Orebro.

Dexia on deck

Dexia Credit Local is planning to price a benchmark offering of five-year notes (Aa3/AA/) on Wednesday, according to an informed source.

The notes are talked in the mid- to high-40 bps area over mid-swaps.

Deutsche Bank Securities, JPMorgan, Morgan Stanley & Co. and Societe Generale are the joint bookrunners.

The regional bank, focusing on sustainable development, is based in Brussels.

Third Point plans offering

Third Point Re (USA) Holdings, a wholly owned subsidiary of Third Point Reinsurance Ltd., plans to price an offering of senior notes, according to an FWP filed with the SEC.

Proceeds will be used to partially finance the capitalization of wholly owned subsidiary Third Point Reinsurance (USA) Ltd.

Third Point is a Bermuda-based provider of specialty property and casualty reinsurance products.

Morgan Stanley mixed

Morgan Stanley’s 2.375% notes due 2019 headed out unchanged in late afternoon trading at 119 bps offered, a market source said.

Morgan Stanley sold $2.5 billion of the notes on July 17, 2014 at a spread of Treasuries plus 85 bps.

Morgan Stanley’s 3.875% notes due 2024 widened to 164 bps bid from 155 bps bid on Friday, the source said.

The notes priced in a $3 billion offering on April 23, 2014 at Treasuries plus 130 bps.

Morgan Stanley is a financial services company based in New York City.

Verizon steady

In other secondary trading, Verizon’s 4.15% notes due 2024 were flat at 163 bps bid, a market source said.

Verizon sold $1.25 billion of the notes on March 10, 2014 at Treasuries plus 140 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.