Shell, Williams Partners, Goldman hit primary market; Air Lease notes rise in secondary

By Cristal Cody and Aleesia Forni

Virginia Beach, Nov. 12 - Shell International Finance BV, Williams Partners LP and Goldman Sachs Group Inc. were among the issuers to bring new deals to Tuesday's market following the extended Veterans Day holiday weekend.

The largest of the day's deals was sold by Shell International. The company priced $4 billion of senior notes in four maturities during the session.

Shell priced $750 million of two-year floaters with a coupon of Libor plus 7 basis points and $1 billion of three-year floaters with a coupon of Libor plus 21 bps.

A $1 billion tranche of 0.9% three-year notes priced at Treasuries plus 32 bps.

Finally, a $1.25 billion tranche of 2% five-year notes sold with a spread of Treasuries plus 55 bps.

Williams Partners also came to Tuesday's market to price $1 billion of senior notes in two tranches.

There was $600 million of 4.5% senior notes due 2023 sold at Treasuries plus 180 bps and $400 million of 5.8% 30-year senior notes sold at Treasuries plus 195 bps.

Meanwhile, Goldman Sachs brought a $1 billion sale of five-year floating-rate notes at par to yield Libor plus 110 bps.

In other primary action, Air Lease Corp. priced an upsized $700 million issue of 3.375% senior notes due 2019 at Treasuries plus 195 bps.

FMC Corp. was also in the market on Tuesday, selling $400 million of 4.1% senior notes due 2024 with a spread of Treasuries plus 135 bps.

Also on Tuesday, Ares Capital Corp. said it plans to price a benchmark sale of five-year senior notes during the Nov. 11 week, according to a filing with the Securities and Exchange Commission.

In another new deal announcement, FMS Wertmanagement set price talk for its planned offering of five-year senior notes in the area of mid-swaps plus 15 bps, according to a syndicate source.

Looking ahead, sources continue to expect $15 billion to $20 billion of new issuance for the shortened week.

"We [have] a few lined up for tomorrow," one syndicate source said on Tuesday. "Nothing too overwhelming."

New paper sold on Tuesday traded mostly flat to better in the secondary market, while bond spreads headed out weaker, according to market sources.

Air Lease's 3.375% notes climbed higher in the secondary market, a trader said.

FMC's 4.1% senior notes traded flat.

Shell's tranches traded 1 bp tighter late in the day, a trader said.

The Markit CDX North American Investment Grade series 21 index ended 1 bp wider to a spread of 73 bps.

Shell prices $4 billion

Shell International Finance came to Tuesday's market to price $4 billion of senior notes (A1/AA/) in four parts, according to a market source.

The deal included $750 million of floating-rate notes due 2015 priced at par to yield Libor plus 7 bps.

A second tranche was $1 billion of three-year floaters priced at par to yield Libor plus 21 bps.

The company also priced $1 billion of 0.9% senior notes due 2016 with a spread of Treasuries plus 32 bps, or 99.876, to yield 0.942%.

The notes sold at the tight end of talk.

Finally, $1.25 billion of 2% five-year notes was priced at Treasuries plus 55 bps.

Shell sold the notes in line with talk.

The notes priced at 99.972 to yield 2.006%.

Shell International's 0.9% notes firmed to 31 bps bid, 28 bps offered in the secondary market, a trader said. The tranche of 2% notes headed out at 54 bps bid, 51 bps offered.

Goldman Sachs & Co. and J.P. Morgan Securities LLC are the joint bookrunners.

The company plans to use proceeds for general corporate purposes.

The oil and gas company, based in Hague, the Netherlands, was last in the market with $3.75 billion of guaranteed notes in three tranches on Aug. 7.

The notes are guaranteed by Royal Dutch Shell plc.

Williams two-parter

Williams Partners priced $1 billion of senior notes (/BBB/BBB-) in tranches due 2023 and 2043, according to an informed source and an FWP filed with the SEC.

The sale included $600 million of 4.5% 10-year senior notes priced at Treasuries plus 180 bps.

Pricing was at 99.396 to yield 4.576%.

There was also $400 million of 5.8% 30-year senior notes sold with a spread of Treasuries plus 195 bps, or 99.339, to yield 5.847%.

Williams Partners' 4.5% notes traded at 184 bps bid, 181 bps offered, according to a trader.

The 5.8% bonds traded at 199 bps bid, 196 bps offered.

JPMorgan, Morgan Stanley & Co. LLC, RBS Securities Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs and Scotia Capital (USA) Inc. were the joint bookrunners.

The company intends to use proceeds from the offering to repay amounts outstanding under its commercial paper program, to fund capital expenditures and for general partnership purposes.

Goldman Sachs sells floaters

Also on Tuesday, Goldman Sachs Group priced $1 billion of floating-rate senior notes (A3/A-/A-) due 2018 at par to yield Libor plus 110 bps, a source away from the trade said.

Goldman Sachs was the sole bookrunner.

The financial services company is based in New York City.

Air Lease new issue

The session saw Air Lease sell an upsized $700 million of 3.375% senior notes (/BBB-/) due 2019 with a spread of Treasuries plus 195 bps, according to an informed source.

Pricing was at 99.858 to yield 3.406%.

The joint bookrunners were BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs, JPMorgan, Barclays, BMO Capital Markets Corp., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Morgan Stanley, RBC Capital Markets LLC and RBS Securities.

Proceeds will be used for general corporate purposes.

Air Lease is a Los Angeles-based aircraft leasing company.

FMC sells $400 million

FMC was in Tuesday's market with a $400 million issue of 4.1% senior notes due Feb. 1, 2024 priced with a spread of Treasuries plus 135 bps, according to a syndicate source and an FWP filing with the SEC.

The notes (Baa1/A-/) priced at 99.84 to yield 4.12%.

In the secondary market, FMC's 4.1% senior notes traded flat on the bid side at 135 bps bid, 130 bps offered, according to a trader.

The bookrunners were BofA Merrill Lynch, Citigroup Global Markets and HSBC Securities (USA) Inc.

Proceeds will be used to repay commercial paper and for general corporate purposes.

The diversified chemical company is based in Philadelphia.

FMS sets talk

In other primary news, FMS Wertmanagement set price talk for its planned offering of five-year senior notes in the area of mid-swaps plus 15 bps, according to a syndicate source.

Deutsche Bank Securities, HSBC Securities, JPMorgan and Morgan Stanley are the bookrunners.

The company was last in the market with $1.5 billion of 1.125% senior notes due 2016 priced at 26 bps over Treasuries on Sept. 11.

The notes are guaranteed by the Federal Republic of Germany.

The financial services company is based in Munich.

Ares eyes five-year notes sale

Ares Capital is planning to price a benchmark offering of five-year senior notes during the Nov. 11 week, according to a filing with the SEC.

Proceeds will be used to repay outstanding debt and for general corporate purposes.

Active bookrunners are BofA Merrill Lynch, JPMorgan and Barclays.

Morgan Stanley, Wells Fargo Securities LLC and Stifel Nicolaus & Co. Inc. are the passive bookrunners.

BMO Capital Markets and Mizuho Securities are the co-managers.

The specialty finance company is based in Los Angeles.

Bank/broker CDSs mostly flat

Investment-grade bank and brokerage CDS prices were unchanged to lower on Tuesday, according to a market source.

Bank of America Corp.'s CDS costs were flat at 99 bps bid, 102 bps offered. Citigroup Inc.'s CDS costs eased 1 bp to 93 bps bid, 96 bps offered. JPMorgan Chase & Co.'s CDS costs widened 2 bps to 84 bps bid, 87 bps offered. Wells Fargo & Co.'s CDS costs closed unchanged at 53 bps bid, 57 bps offered.

Merrill Lynch's CDS costs ended unchanged at 100 bps bid, 105 bps offered. Morgan Stanley's CDS costs eased 2 bps to 111 bps bid, 114 bps offered. Goldman Sachs Group's CDS costs ended flat at 116 bps bid, 119 bps offered.

Paul Deckelman contributed to this review.

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