Mondelez, Hewlett-Packard price; Fannie Mae sells Benchmark Notes; HP firms; Mondelez flat

By Aleesia Forni

Virginia Beach, Jan. 9 - Mondelez International Inc. and Hewlett-Packard Co. made their way on Thursday to the high-grade primary market, which displayed somewhat subdued activity compared to earlier during the week.

One source noted that potential issuers may have decided to stay on the sidelines ahead of Friday's non-farm payrolls report.

Hewlett-Packard was in the market with a $2 billion sale of five-year senior notes in fixed- and floating-rate tranches.

HP priced $750 million of floaters to yield Libor plus 94 basis points and $1.25 billion of 2.75% notes at Treasuries plus 102 bps.

The deal was flooded with orders, a source said, with a book reaching more than $5 billion.

In other primary action, Mondelez International sold $3 billion of notes in three tranches during the session.

A $400 million issue of five-year floaters was priced at par to yield Libor plus 52 bps.

There was also $850 million of 2.25% notes due 2019 sold with a spread of Treasuries plus 60 bps and $1.75 billion of 4% notes due 2024 priced at 105 bps over Treasuries.

International Bank for Reconstruction and Development (World Bank) was also in Thursday's primary, selling $4 billion of 1.875% five-year notes at mid-swaps plus 4 bps.

Fannie Mae also hit the primary to price $3 billion of 1.875% Benchmark Notes due 2019 at Treasuries plus 21 bps.

Investment-grade bonds traded flat to slightly better over the day, according to market sources.

The Markit CDX North American Investment Grade series 21 index was unchanged at a spread of 65 bps.

In the secondary market, Hewlett-Packard's 2.75% notes due 2019 firmed 5 bps, according to traders.

The two tranches of notes that Mondelez priced during the session traded wrapped around issuance, traders said.

Mondelez two-parter

Mondelez International priced a $3 billion three-part issue of senior notes (Baa1/BBB-/BBB) on Thursday, according to a market source.

The company priced $400 million of five-year floating-rate notes at par to yield Libor plus 52 bps.

There was also $850 million of 2.25% five-year notes priced at 99.541 to yield 2.347%, or Treasuries plus 60 bps.

A third tranche was $1.75 billion of 4% notes due 2024, which sold at 105 bps over Treasuries.

The notes priced at 99.892 to yield 4.013%.

The Mondelez notes traded mostly flat in the secondary market, according to traders. The 2.25% notes due 2019 traded at 59 bps bid, 55 bps offered and later at 60 bps bid, 56 bps offered.

The company's tranche of 4% notes due 2024 traded at 104 bps bid, 102 bps offered, a trader said. The 10-year notes were seen by another trader at 105 bps bid, 103 bps offered later in the day.

Proceeds will be used for general corporate purposes.

Barclays, J.P. Morgan Securities LLC, RBS Securities Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. were the joint bookrunners.

Mondelez, formerly Kraft Foods Inc., is a snack company based in Deerfield, Ill.

HP prices tight

Hewlett-Packard sold $2 billion of five-year senior notes (Baa1/BBB+/A-) in fixed-rate and floating-rate tranches, according to an informed source and two separate FWP filings with the Securities and Exchange Commission.

The sale included $750 million of floaters priced at par to yield Libor plus 94 bps.

A second tranche was $1.25 billion of 2.75% notes priced with a spread of Treasuries plus 102 bps.

Pricing was at 99.954 to yield 2.76%.

The fixed-rate tranche priced tight of the Treasuries plus 105 bps talk, which was tightened from 115 bps to 120 bps.

Hewlett-Packard's 2.75% notes due 2019 tightened after pricing to 96 bps bid, 91 bps offered, a trader said. The issue headed out wider on the offered side at 96 bps bid, 95 bps offered, according to a trader at another desk.

Proceeds will be used for general corporate purposes.

BofA Merrill Lynch, BNP Paribas Securities Corp., RBS Securities and Wells Fargo Securities LLC were the joint bookrunners.

ANZ Securities, Inc., Barclays, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities, HSBC Securities (USA), JPMorgan, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Santander Investment Securities Inc., SG Americas Securities, LLC and Standard Chartered Bank were the co-managers.

The Palo Alto, Calif-based computer and technology company was last in the market on March 7, 2012 with a two-part $2 billion sale of senior notes. The 2.6% notes due 2017 priced with a spread of Treasuries plus 175 bps and the 4.05% 10-year notes priced at 210 bps over Treasuries.

World Bank new issue

World Bank priced a $4 billion issue of 1.875% five-year notes (Aaa/AAA/) with a spread of mid-swaps plus 4 bps, according to an informed source.

The notes sold at 99.688 to yield 1.989%.

Citigroup Global Markets, JPMorgan, Nomura Securities Co. Ltd and RBC Capital Markets were the joint bookrunners.

World Bank was last in the U.S. bond market pricing $6 billion of notes in two tranches on Oct. 24, 2013.

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.

Fannie Mae prices

Fannie Mae priced $3 billion of 1.875% Benchmark Notes due Feb. 19, 2019 at Treasuries plus 21 bps, a market source said.

Pricing was at 99.518 to yield 1.975%.

The notes priced on top of talk, which was widened from Treasuries plus 20.5 bps.

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

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

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