Fiserv, Spectra Energy, FPL among deals in stable primary; Goldman bonds active on headlines

By Andrea Heisinger

New York, June 6 - The prediction that this week is not expected to be a high-volume week rang somewhat true on Monday as only a few high-grade deals were sold.

Fiserv, Inc. entered the market with an upsized $1 billion sale in two parts, making it the largest offering of the day. The deal size was increased from $750 million.

A similar two-part sale came from natural gas pipeline Spectra Energy Partners, LP. The company sold $500 million with maturities of 2016 and 2021.

Electric utility Florida Power & Light Co. priced $250 million of 30-year first mortgage bonds to repay a portion of commercial paper.

There was a reopening of notes by Valmont Industries, Inc. The fabricated metal products company reopened its 6.625% notes due 2020 to add $150 million. The total outstanding is now $450 million.

"I would say the market's been pretty stable today," a syndicate source said. "As long as nothing crazy happens, I'd say we'll be active again tomorrow."

Goldman Sachs Group, Inc. bonds were trading heavily in the secondary market again after news that the financial is selling its mortgage unit, Litton Loan Servicing LP, to Ocwen Financial Corp.

Markets in Asia were closed for a holiday, leaving the secondary with low volume, a source said early in the day.

"I would say it was dull today," a trader said.

Overall volume remained steady from Friday at roughly $6.7 billion.

A couple of the day's new deals were seen trading. Fiserv's new five-year notes were seen slightly tighter after pricing, and Florida Power & Light's new 30-year mortgage bonds were trading around where they priced. One of the new Spectra notes traded tighter on the offer side.

Treasury bonds were mostly unchanged by the end of the day with the five- and-10-year yields each seen at the same levels as Friday.

The 30-year Treasury bond yield was about 4 basis points wider at 4.26%.

Fiserv notes price tight

Fiserv priced an upsized $1 billion of senior notes (Baa2/BBB-) in two tranches, a source close to the offering said.

The deal was originally at $750 million, but increased at the launch.

The $600 million of 3.125% five-year notes was sold at a spread of 155 bps over Treasuries. The notes sold at the tight end of talk in the 160 bps area.

A $400 million tranche of 4.75% 10-year notes sold at Treasuries plus 180 bps. It was priced at the lowest end of guidance in the 185 bps area.

Active bookrunners were Bank of America Merrill Lynch and J.P. Morgan Securities LLC. Proceeds are being used to fund the purchase of 6.125% notes due 2012 in a tender offer.

The notes are guaranteed by the company's domestic subsidiaries.

In the secondary market, the five-year notes were seen trading a bit tighter while the 10-year notes were not immediately seen.

The five-year paper was bid at 153 bps and offered at 149 bps for a gain of between 2 and 6 bps, a trader said.

The financial services technology provider is based in Brookfield, Ill.

Spectra sells in two parts

Spectra Energy Partners priced $500 million of senior notes (Baa3/BBB/BBB) in two parts, a source who worked on the trade said.

The deal was roughly four times oversubscribed at $2 billion on the books, the source said.

The $250 million of 2.95% five-year notes was priced at a spread of Treasuries plus 140 bps. The notes were priced at the tightest end of guidance in the 145 bps area, plus or minus 5 bps.

A second tranche of $250 million in 4.6% 10-year notes sold at Treasuries plus 160 bps. It also sold at the tightest end of talk in the 165 bps area, plus or minus 5 bps.

Bookrunners were Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co., Inc. and RBS Securities LLC.

Proceeds are being used to repay outstanding borrowings under a term loan, repay all but $40 million of funds borrowed under a credit facility and for general corporate purposes.

One of the Spectra bonds was seen in the secondary market. The 2.95% 2016 was tighter by 10 bps on the offer side at 130 bps, a source said.

The natural gas pipeline gathering and transportation company is based in Houston.

FPL's mortgage bonds

Florida Power & Light sold $250 million of 5.125% 30-year first-mortgage bonds (Aa3/A/AA-) to yield Treasuries plus 87 bps, according to an FWP filing with the Securities and Exchange Commission.

Bookrunners were BNP Paribas Securities Corp., BNY Mellon Capital Markets LLC, J.P. Morgan Securities LLC and Mitsubishi UFJ (USA) Inc.

Proceeds will be added to the company's general funds and used to repay a portion of outstanding commercial paper as well as for general corporate purposes.

The new FPL notes were wrapped around where they priced in trading, a market source said.

He quoted them at a bid of 87 bps and offer of 84 bps.

The electric subsidiary of NextEra Energy, Inc. is based in Juno Beach, Fla.

Valmont reopens 10-years

Omaha-based Valmont Industries reopened its split-rated 6.625% senior notes due 2020 to add $150 million, according to a market source.

The notes (Ba1/BBB-) were sold at a spread of Treasuries plus 220 bps.

Total issuance is $450 million, including $300 million sold on April 7, 2010 at Treasuries plus 273.5 bps

Bank of America Merrill Lynch ran the books.

Proceeds are being used to finance the redemption of 6.875% senior subordinated notes due in May of 2014.

The deal is guaranteed by the subsidiaries that guarantee the company's revolving credit facility.

The issuer is a maker of fabricated metal products.

Goldman bonds trade heavily

Three of the four top-traded bonds in the high-grade secondary in early afternoon were from Goldman Sachs Group, a source said.

One of the most traded was a fairly recent 3.625% bonds due 2016 that had volume of 71,854. This was much higher than trading of banking giant's 6% bonds due 2020 that came in behind the 2016 in volume.

An older 6.75% bond due 2037 was also trading heavily.

This is the third day in a row that Goldman bonds have been active. They rose in trading late the previous week on headlines that they were being subpoenaed by Manhattan prosecutors for their role in the financial crisis.

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