Goldman, Caterpillar, Colgate price as primary flood continues; Time Warner Cable, Comcast better

By Cristal Cody and Aleesia Forni

Virginia Beach, Feb. 26 - Goldman Sachs Group Inc., Caterpillar Financial Services Corp. and Colgate-Palmolive Co. came to Wednesday's primary market, pushing the week's total supply to nearly $24 billion.

Goldman came to market with a $3 billion issue of 4% notes due 2024 with a spread of 137.5 basis points over Treasuries.

The notes sold nearly 10 bps tighter than original guidance.

Also on Wednesday, Caterpillar Financial Services sold $1.35 billion of senior notes in three parts.

A $300 million tranche of three-year floaters sold at par to yield Libor plus 23 bps, while $800 million of 1% three-year notes sold at Treasuries plus 35 bps.

There was also a $250 million tap of Caterpillar's existing 3.75% notes due 2023 priced at Treasuries plus 88 bps.

Colgate-Palmolive came to the session with $1 billion of senior notes in two maturities, both pricing at the tight end of talk.

There was a $500 million tranche of 1.75% notes due 2019, which sold at Treasuries plus 30 bps.

The company also priced a $500 million tranche of 3.25% 10-year notes at 65 bps over Treasuries.

Both tranches priced at the tight end of talk.

The deal's orderbook was nearly three times oversubscribed, a market source said.

Also on Wednesday, Huntington National Bank sold $500 million of 2.2% notes due 2019 at 75 bps over Treasuries.

The session also saw the European Investment Bank sell $5 billion of 0.875% three-year notes to yield mid-swaps plus 5 bps.

The notes sold in line with talk.

In other market action, Landwirtschaftliche Rentenbank priced a tap of its existing floating-rate notes due 2018, though full details were not available at press time.

The week has seen roughly $24 billion of paper price so far, nearing sources' predictions of around $30 billion of supply.

"Things are looking really good, so I wouldn't be surprised," one market source said of the likelihood of a $30 billion week.

Investment-grade bond spreads were flat to slightly softer over the day, according to market sources.

Time Warner Cable Inc.'s notes tightened in secondary trading, a market source said.

Comcast Corp.'s 3.6% senior notes due 2024 (A3/A-/A-) priced a week ago traded higher, a source said.

EIB prices three-years

The European Investment Bank priced $5 billion of 0.875% three-year notes on Wednesday to yield mid-swaps plus 5 basis points, according to syndicate source.

The notes (Aaa/AAA/AAA) priced in line with talk.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC ran the books.

The lender for the European Union is based in Kirchberg, Luxembourg.

Goldman brings $3 billion

Goldman Sachs priced $3 billion of 4% 10-year senior notes (Baa1/A-/A) Wednesday with a spread of 137.5 bps over Treasuries, according to a source away from the trade.

Pricing was at 99.698 to yield 4.037%.

Goldman Sachs & Co. was the bookrunner.

The financial services company is based in New York City.

Colgate upsizes

Colgate-Palmolive priced an upsized $1 billion issue of five- and 10-year notes (Aa3/AA-/AA-) during Wednesday's session, according to a market source and two separate FWP filings with the Securities and Exchange Commission.

The company sold $500 million of 1.75% notes due 2019 at 99.88 to yield 1.775%, or Treasuries plus 30 bps.

A $500 million tranche of 3.25% notes due 2024 priced with a spread of 65 bps over Treasuries. Pricing was at 99.397 to yield 3.321%.

Both tranches priced at the tight end of talk.

Bookrunners are Goldman Sachs, Wells Fargo Securities LLC and Citigroup Global Markets.

Proceeds will be used to repay debt and for general corporate purposes, which may include the retirement of commercial paper.

Colgate-Palmolive is a New York City-based consumer products company.

Huntington prices tight

Huntington National Bank priced a $500 million issue of 2.2% notes due 2019 at 75 bps over Treasuries, according to market sources.

The notes (A3/BBB+/) sold at 99.842 to yield 2.233%.

Pricing was at the tight end of talk.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities were the joint bookrunners.

The banking affiliate of Huntington Bancshares is based in Columbus, Ohio.

Time Warner Cable firms

Time Warner Cable's 4.125% notes due 2021 (Baa2/BBB/BBB) firmed 1 bp on the day to 72 bps bid, better than where the notes traded on Friday at 77 bps bid, according to sources on Wednesday.

The seven-year notes traded in the 215 bps area earlier in the month before the company announced that it will be acquired by Comcast in a $45.2 billion all-stock deal.

Time Warner Cable sold $700 million of the 4.125% notes due 2021 at Treasuries plus 155 bps in 2010.

The broadband communications company is based in New York City.

Comcast rises

Comcast's 3.6% notes due 2024, priced at 99.426 to yield 3.669% in a $1.2 billion offering on Feb. 19, rose to 100.78 on Wednesday, up from 99.52 at the start of the week, a market source said.

The media, technology and entertainment company is based in Philadelphia.

Bank/brokerage CDS flat to lower

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

Bank of America Corp.'s CDS costs firmed 1 bp to 69 bps bid, 72 bps offered. Citigroup Inc.'s CDS costs were unchanged at 76 bps bid, 79 bps offered. JPMorgan Chase & Co.'s CDS costs ended flat at 60 bps bid, 63 bps offered. Wells Fargo & Co.'s CDS costs were unchanged at 39 bps bid, 42 bps offered.

Merrill Lynch's CDS costs were flat at 71 bps bid, 74 bps offered. Morgan Stanley's CDS costs ended unchanged at 85 bps bid, 88 bps offered. Goldman Sachs Group's CDS costs declined 1 bp to 85 bps bid, 90 bps offered.

Paul Deckelman contributed to this review.

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