Fannie Mae sells $5.5 billion benchmark notes; Corning prices $250 million senior notes

By Sheri Kasprzak and Aleesia Forni

New York, Oct. 26 - Heading up Friday's light primary action in the investment-grade bond market, Fannie Mae brought $5.5 billion of five-year benchmark notes.

The 0.875% notes are due Dec. 20, 2017 and were priced at Treasuries plus 18.5 basis points. The notes were priced at 99.555 to yield 0.964%.

Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan & Co. were the joint bookrunners.

Fannie Mae provides global capital to finance affordable housing projects.

The Markit CDX Series 18 North American Investment Grade index was unchanged at a spread of 98 bps on Friday.

One trader commented that the secondary market was "a bit wider, not too much, maybe 3 to 5 basis points."

In secondary trading, notes from Morgan Stanley and Citigroup, both due in 2019, widened on Friday.

Corning sells senior notes

In other pricing action, Corning Inc. priced $250 million of senior unsecured notes, according to a statement from the company.

The notes were sold through joint bookrunners Citigroup and JPMorgan. The senior co-manager was Deutsche Bank Securities Inc.

The 1.45% notes due Nov. 15, 2017 were priced at 99.768 to yield 1.498%, or Treasuries plus 75 bps. The notes feature a make-whole call at any time at par.

Proceeds will be used to for general corporate purposes, including funding the purchase of outstanding notes in the tender offer and to redeem two series of outstanding debentures, as well as financing acquisitions, repurchasing common stock, making additions to working capital and making investments.

Based in Corning, N.Y., Corning is a technology manufacturing company.

Citigroup widens

The secondary market saw Citigroup's 8.5% 10-year notes widen 10 bps to 123 bps bid.

The bank priced $1 billion of the notes due 2019 at Treasuries plus 437.5 bps on June 11, 2009.

Morgan Stanley active

In other trading, Morgan Stanley's 7.3% notes due 2019 widened 9 bps to 210 bps bid.

Morgan Stanley priced $1 billion of the notes at 360 bps over Treasuries in May 2009.

© 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.