NXP, Moody’s, Caterpillar tap primary market; ING eyes deal; Deutsche Bank paper widens

By Cristal Cody

Tupelo, Miss., Dec. 3 – More than $4 billion of high-grade bonds priced in the primary market on Monday.

NXP BV and co-issuer NXP Funding LLC sold $2 billion of senior notes in three tranches.

Caterpillar Financial Services Corp. priced $1.25 billion of medium-term notes in three tranches.

In addition, Moody's Corp. brought an $800 million two-part offering of senior notes to the market.

ING Groep NV initially talked an offering of fixed-rate subordinated resettable notes due Dec. 12, 2033 to print on Monday, but the deal was postponed.

In other investment-grade issuance, Federal Home Loan Bank System announced that it priced a $250 million reopening of its 3.25% Global Notes due Nov. 16, 2028.

About $15 billion to $20 billion of high-grade issuance was expected by market sources for the week.

However, the bond markets will be closed on Wednesday as part of a national day of mourning for former president George Bush.

Volume is expected to decline over the rest of the month with only about $25 billion to $30 billion of total supply predicted for December, according to syndicate sources.

More than $30 billion of bonds priced in the previous week.

Stocks rallied on Monday on plans to delay tariffs on Chinese goods that were set to take effect Jan. 1, pending further talks.

The Markit CDX North American Investment Grade 31 index firmed about 1 basis point to end at a spread of 75 bps.

Caterpillar Financial Services’ existing notes were mostly unchanged in the secondary market on Monday, a source said.

Elsewhere, Deutsche Bank AG’s paper remained weak after the company’s Frankfurt headquarters were raided by police last week on suspicion of money laundering.

Deutsche Bank’s 4.1% notes due Jan. 13, 2026 were nearly 20 bps wider on Monday at 264 bps bid, a source said. The issue went out on Friday about 8 bps weaker at 245 bps bid.

Deutsche Bank sold $750 million of the notes (A3/BBB+/BBB+) on Jan. 8, 2016 at a spread of Treasuries plus 200 bps.

NXP raises $2 billion

NXP sold $2 billion of senior notes (Baa3/BBB-/BBB-) in three tranches on Monday on the tight side of guidance, a market source said.

The deal included $1 billion of 4.875% notes due March 1, 2024 that priced with a spread of Treasuries plus 205 bps. Deal guidance was in the Treasuries plus 210 bps area, plus or minus 5 bps, tighter than initial talk in the Treasuries plus 225 bps area.

NXP sold $500 million of 5.35% notes due March 1, 2026 at a 245 bps over Treasuries spread. The issue was guided to price in the Treasuries plus 250 bps area, plus or minus 5 bps, compared to initial talk in the 255 bps area.

A final $500 million tranche of 5.55% 10-year notes priced with a spread of 260 bps over Treasuries, on the tight side of guidance of 265 bps over Treasuries area, plus or minus 5 bps. Initial price talk was in the Treasuries plus 275 bps area.

Barclays and Credit Suisse Securities (USA) LLC were the bookrunners.

The notes will be guaranteed by parent company NXP Semiconductors NV, as well as NXP Semiconductors Netherlands BV and NXP USA Inc.

NXP is an Eindhoven, the Netherlands-based manufacturer and retailer of semiconductor chips.

Caterpillar taps market

Caterpillar Financial Services priced $1.25 billion of medium-term notes (A3/A/A) in three tranches on Monday, according to a market source and FWP filings with the Securities and Exchange Commission.

A $400 million tranche of floating-rate notes due Dec. 7, 2020 priced at par to yield Libor plus 35 bps.

The company sold $350 million of 3.35% two-year fixed-rate notes at 99.983 to yield 3.359% and a spread of 53 bps over Treasuries.

Caterpillar priced $500 million of 3.65% five-year notes at 99.95 to yield 3.661%, or Treasuries plus 83 bps.

Citigroup Global Markets Inc., BofA Merrill Lunch and MUFG were the bookrunners.

Nashville, Tenn.-based Caterpillar Financial Services is a financing arm of Caterpillar Inc.

Moody's sells two tranches

Moody's sold $800 million of senior notes (/BBB+/BBB+) in two parts on Monday, according to a market source and an FWP filing.

A $400 million tranche of 4.25% notes due Feb. 1, 2029 priced at 99.249 to yield 4.343%.

The notes were placed with a spread of 135 bps over Treasuries, on the tight side of guidance in the Treasuries plus 140 bps area, plus or minus 5 bps. Initial price talk was in the 145 bps over Treasuries area.

Moody’s sold $400 million of 4.875% notes due Dec. 17, 2048 at 98.328 to yield 4.983%, or a Treasuries plus 170 bps spread. Price guidance on the notes was in the Treasuries plus 175 bps area, plus or minus 5 bps.

J.P. Morgan Securities LLC, Citigroup, BofA Merrill Lynch and Barclays were the bookrunners.

New York-based Moody’s is the parent company of credit ratings agency Moody’s Investors Service.

ING delays deal

ING Groep (Baa1/A-/A+) planned to price fixed-rate subordinated resettable notes due Dec. 12, 2033 in a Rule 144A and Regulation S offering, according to a market source.

The deal was expected to price on Monday but was postponed due to market conditions.

Initial price talk was in the Treasuries plus 275 bps area.

Citigroup, Goldman Sachs & Co., HSBC Securities (USA) Inc., ING Financial Markets LLC and UBS Securities LLC are the lead managers.

The global financial institution is based in Amsterdam.

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