Du Pont, Equifax, Clorox, Abbey National sell bonds, Regions plans deal; du Pont, Clorox gain

By Andrea Heisinger and Paul Deckelman

New York, Nov. 4 - The issues continued to pour into the high-grade bond market on Wednesday, despite the conclusion of a two-day Federal Reserve meeting. Clorox Co., Equifax Inc., E.I. du Pont de Nemours & Co., Barclays Bank plc and Abbey National Treasury Services plc all priced bonds.

The Fed announced it is keeping its key interest rate low and unchanged for an extended period of time.

The du Pont sale was the largest of the day at $2 billion in tranches of five-and 10-year notes.

Clorox priced first, doing $300 million of six-year notes.

Equifax was also a relatively small issue of an upsized $275 million in five-year notes. The amount was increased by $25 million.

The $1.5 billion of five-year notes from London-based Abbey National Treasury Services was one of the day's two sales from a foreign company selling dollar-denominated bonds. They priced via Rule 144A.

Barclays Bank was its accompanying London-based bank tapping the market. It did a much smaller $75 million of floaters due 2010.

Regions Financial Corp. announced an upcoming sale of five-year notes in a filing with the Securities and Exchange Commission.

Among the established issues in the secondary arena on Wednesday, a market source said the CDX Series 13 North American high-grade index was 1 basis point tighter versus Tuesday's level, at a mid spread level of 106 bps.

Advancing issues continued to trail decliners, by around a four-to-three ratio.

Overall market activity, reflected in dollar-volume totals, jumped by one-third from Tuesday's pace.

Spreads in general were seen tighter, in line with mostly higher Treasury yields; for instance, the yield on the benchmark 10-year notes widened by 5 bps on Wednesday to 3.52%.

Traders saw some modest tightening in the spreads of such newly priced issues as du Pont and Clorox.

The new Woodside Finance bonds which priced on Tuesday were also seen trading well under the spread versus comparable Treasuries at which the bonds had priced on Tuesday, although most of that pickup had come during Tuesday's aftermarket dealings, with only incremental further tightening Wednesday.

Du Pont ahead of Fed

Du Pont sold $2 billion of notes in two tranches ahead of a Fed announcement about interest rates.

The $1 billion tranche of 3.25% five-year notes priced at Treasuries plus 92 bps.

A $1 billion tranche of 4.625% 10-year notes priced at 117 bps over Treasuries.

Both tranches priced at the tight end of price guidance, a source close to the sale said. That was the 95 bps area for the five-year notes, with a margin of plus or minus 3 bps. The 10-year notes were talked in the 120 bps area, also with a margin of 3 bps.

The deal was more than three times oversubscribed with books totaling $7 billion, the source said.

Credit Suisse Securities, J.P. Morgan Securities and Morgan Stanley were tapped as bookrunners for the deal from the science and technology company based in Wilmington, Del.

Proceeds will be used for general corporate purposes.

Clorox sells six-years early

Consumer products maker Clorox sold $300 million of 3.55% six-year senior unsecured notes by early afternoon at Treasuries plus 120 bps. It was the first deal of the day to price, and priced at the size where it was talked.

The notes priced at the tight end of guidance in the 125 bps area, a source said, with a margin of plus or minus 5 bps.

Books for the deal were "north of $2 billion," he said.

Citigroup Global Markets, J.P. Morgan Securities and Wells Fargo Securities ran the books for the Oakland, California-based company.

Proceeds are going to retire commercial paper.

Equifax upsizes to $275 million

Atlanta-based information company Equifax sold an upsized $275 million of 4.45% five-year senior unsecured notes at Treasuries plus 212.5 bps.

The size was increased slightly from a planned $250 million, a source away from the deal said.

J.P. Morgan Securities and SunTrust Robinson Humphrey ran the books.

Proceeds will be used to repay borrowings under a commercial paper program.

Issuers price ahead of Fed

A good chunk of the day's many issues priced early - ahead of any announcement from the two-day Fed meeting that wrapped up in the afternoon Wednesday.

"We definitely tried to [get done early]," said a source who worked on the Du Pont sale. It priced uncharacteristically fast for a $2 billion sale in multiple tranches.

A source who worked on another of the day's sales said that deals were "definitely pushed up" to price earlier. "Everyone got in and out quickly," he said.

Another large deal from Abbey National also got done early, but was started on Tuesday, the source said.

The eventual announcement that the Fed would keep its key interest rate low didn't have much impact on the high-grade bond market, as most of the day's sales were already done.

"No one cared," a market source said. "We watched it, but it didn't do anything."

Two of the day's deals were heavily oversubscribed. Du Pont came in at more than three times over, with Clorox more than six times oversubscribed.

"There's still plenty of money out there, that's for sure," a source who worked on one of the sales said.

There is one deal expected for Thursday, from Regions Financial, but there will likely be others that decided to hold off on issuing until after the Fed meeting.

"We should see a couple [Thursday]," a syndicate source said. "I know we have one potential [deal]."

Abbey National offers $1.5 billion

London-based financial services provider Abbey National Treasury Services priced $1.5 billion of 3.875% five-year notes at Treasuries plus 150 bps as a Rule 144A private placement.

Barclays Capital and Credit Suisse Securities ran the books.

Barclays sells $75 million floaters

Barclays Bank priced $75 million of medium-term floating-rate notes due in 2010 at par to yield one-month Libor plus 38 bps, according to a 424B2 filing with the Securities and Exchange Commission.

Barclays Capital ran the books for the London-based financial services company.

Regions Financial to sell five-year notes

Regions Financial is planning a sale of five-year senior notes, with pricing expected on Thursday, a source close to the deal said. The deal was announced on Wednesday in a 424B3 filing with the Securities and Exchange Commission.

Bookrunners are Goldman Sachs & Co., J.P. Morgan Securities, Morgan Keegan & Co. and UBS Investment Bank.

Proceeds will be used for general corporate purposes.

The financial holding company is based in Birmingham, Ala.

Clorox, du Pont bonds firm modestly

A trader said that there had been some firming in the new bonds of Clorox and du Pont, both of which priced during Wednesday's session, lauding both credits as "good, solid American industrial names."

Clorox's $300 million of 3.55% notes due 2015 were seen as being bid at 114 bps over and finally going out at a 112 bps bid - in from the 120 bps level at which the bonds had priced.

Meanwhile, the new du Pont 3.25% notes due 2015 came in to 90 bps bid, 85 bps offered, versus the 92 bps level at which the $1 billion tranche had priced.

Another trader said he had heard those bonds quoted at 90 bps and as tight as 88 bps after the pricing.

The first trader saw the other half of that $2 billion mega-deal - du Pont's $1 billion of 4.625% notes due 2020 - having firmed a little to 113 bps bid, 108 bps offered.

That was a pickup of about 4 bps to 8 bps from the from the 117 bps level at which the bonds had priced.

Woodside continues tightening

Among Tuesday's issues, a trader saw Woodside Finance - an arm of Woodside Petroleum - continuing to firm from the levels at which the energy company's $700 million of 4.50% notes due 2014 had priced.

The bonds were being quoted Wednesday as tight as 197 bps, with a two-sided quote of 198 bps bid, 195 bps offered, "a pretty tight market," the trader said.

The company had priced its bonds issue - upsized from $500 million - on Tuesday at 230 bps over; those bonds were seen having firmed smartly on the break to levels around 215 bps bid, before continuing to tighten up and go home Tuesday bid around 200 bps over.

"So most of the heavy lifting had been done in Tuesday's session," a market source said, with just minimal additional tightening on Wednesday.

IBM little moved

A trader saw International Business Machines Corp.'s new floating-rate notes due 2010 having tightened a little Wednesday to Libor flat, versus the Libor plus 4 bps level at which at $750 million issue of floaters had priced on Tuesday.

Meantime, the Armonk, N.Y.-based computer giant's $1.25 billion of 2.10% notes due 2013 were being quoted at 71 bps bid, 67 bps offered, straddling the 70 bps spread at which the bonds priced Tuesday.

"Everyone always likes that name, and it trades well," the trader said. "But there was nothing today."

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