Westpac Banking, Dominion, Albemarle issue bonds; Scripps firms; Albemarle mixed

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 17 – Another flood of issuers raced to the primary market on Monday, pricing more than $8 billion during the session.

Westpac Banking Corp. came to market with $2 billion of three-year notes in fixed- and floating-rate tranches, both pricing at the tight end of talk.

Also on Monday, Dominion Resources Inc. sold $1.65 billion of senior notes in three parts.

Albemarle Corp. sold $1.03 billion of senior notes in three parts at the tight end of talk, attracting an orderbook that was more than five times oversubscribed.

In other primary happenings, Scripps Networks Interactive Inc. sold a $1 billion two-part offering at the tight end of talk.

KeyBank NA also came to Monday’s primary, upsizing its new $750 million offering from an initial size of $500 million.

The deal sold around 20 basis points tight of initial guidance and garnered a book that was more than three times oversubscribed.

The session also saw new deals price from Interstate Power & Light Co., Duke Energy Progress Inc., DTE Energy Co. and Nationwide Financial Services Inc.

With the market continuing to feel supportive, players are preparing for another $30 billion-plus week for the final full week of the month.

Investment-grade credit spreads opened flat but headed out weaker, market sources said.

The Markit CDX North American Investment Grade series 23 index closed 1 b wider at a spread of 66 bps.

In the secondary market, Scripps Networks’ two tranches of notes tightened 1 bp to 1.5 bps, a trader said.

Albemarle’s notes traded wrapped around issuance to 1 bp weaker on the long issue, a trader said.

Interstate Power & Light’s 3.25% notes due 2024 firmed 4 bps on the offered side, according to a trader.

No aftermarket activity was seen in Westpac Bank’s paper as the session closed, a trader said.

Other issuers also priced late afternoon with no trading seen in bonds from Nationwide Financial Services, Dominion Resources, Duke Energy and DTE Energy, traders said.

Westpac two-parter

Westpac Banking priced $2 billion of three-year notes (Aa2/AA-/) in fixed- and floating-rate tranches on Monday, according to a market source and an FWP filed with the Securities and Exchange Commission.

The sale included $650 million of floaters due 2017 priced at par to yield Libor plus 37 bps.

A second tranche was $1.35 billion of 1.5% notes due 2017 priced at 99.994 to yield 1.502%, or Treasuries plus 55 bps.

Pricing was at the tight end of talk.

BofA Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.

Proceeds from the offering will be used for general corporate purposes.

The banking organization is based in Sydney, Australia.

Dominion brings $1.65 billion

Dominion Resources sold $1.65 billion of senior notes (Baa2/BBB+/BBB+) in three parts on Monday, according to a market source and an FWP filed with the SEC.

The sale included $700 million of 2.5% series B notes due 2019 priced at 99.85 to yield 2.532%, or Treasuries plus 90 bps.

The notes sold at the tight end of talk, which firmed around 5 bps compared to initial guidance.

A second tranche was $500 million of 3.625% series C notes due 2024 priced at 99.833 to yield 3.645%, or Treasuries plus 130 bps.

The notes sold at the tight end of talk, which was unchanged from initial guidance.

A third tranche was $450 million of 4.7% series D notes due 2044 priced with a spread of Treasuries plus 165 bps. Pricing was at 99.632 to yield 4.723%.

The notes sold in line with talk, which was unchanged compared to initial price thoughts.

BofA Merrill Lynch, JPMorgan, Deutsche Bank Securities Inc., RBC Capital Markets LLC and Scotia Capital (USA) Inc. are the joint bookrunners.

Proceeds will be used for general corporate purposes, to repay debt including commercial paper and to offset the payment of the redemption price to be paid in connection with the redemption of outstanding senior debt securities.

The energy producer and transporter is based in Richmond, Va.

Albemarle prices tight

Albemarle sold $1,025,000,000 senior notes (Baa3/BBB-/) in three parts, according to a market source and an FWP filed with the SEC.

The sale included $250 million of 3% five-year notes priced with a spread of 140 bps. Pricing was at 99.875 to yield 3.027%.

A $425 million tranche of 4.15% notes due 2024 priced at 99.658 to yield 4.192%, or Treasuries plus 185 bps.

Finally, $350 million of 5.45% 30-year bonds sold at 99.705 to yield 5.47%, or Treasuries plus 240 bps.

All three tranches sold at the tight end of talk.

BofA Merrill Lynch, JPMorgan and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to fund the company’s acquisition of Rockwood Holdings, Inc., with any remaining proceeds being used for general corporate purposes.

No secondary trading was seen late afternoon in Albemarle’s 3% notes due 2019, a trader said.

The company’s tranche of 4.15% notes due 2024 traded mostly flat at 185 bps bid, 182 bps offered, the trader said.

Albemarle’s 5.45% notes due 2044 were quoted weaker in aftermarket trading at 241 bps bid, 237 bps offered.

The specialty chemical company is based in Baton Rouge, La.

Scripps brings $1 billion

Scripps Networks Interactive priced $1 billion of senior notes (Baa1/A-/) in two tranches, according to an FWP filed with the SEC.

A $500 million tranche of 2.75% five-year notes sold at 99.645 to yield 2.827%, or Treasuries plus 120 bps.

A $500 million tranche of 3.9% notes due 2024 sold with a spread of Treasuries plus 165 bps.

Pricing was at 99.266 to yield 3.99%.

Both parts sold at the tight end of price talk.

BofA Merrill Lynch, JPMorgan, Wells Fargo Securities and MUFG were the bookrunners.

Proceeds will be used for general corporate purposes, including the repayment of the company’s 3.55% notes due Jan. 15, 2015.

In the secondary market, Scripps Networks’ 2.75% notes due 2019 tightened to 118.5 bps bid, a trader said as the session closed.

The tranche of 3.9% notes due 2024 firmed to 164 bps bid, the trader said.

Scripps is a Knoxville, Tenn.-based lifestyle content and interactive services company.

KeyBank upsizes

KeyBank priced $750 million of 2.5% senior bank notes (A3/A-/A-) with a spread of Treasuries plus 88 bps, a market source said.

The notes sold at 99.956 to yield 2.509%.

Pricing was at the tight end of talk.

Goldman Sachs & Co., JPMorgan, Morgan Stanley and Keybanc Capital Markets LLC were the joint bookrunners.

Proceeds will be used for general corporate purposes.

KeyBank is a Cleveland-based financial services company.

Duke Energy two-part offer

Duke Energy Progress priced a $700 million two-part offering of first mortgage bonds (Aa2/A/A+) on Monday, according to a market source and an FWP filed with the SEC.

The deal included a $200 million floating-rate tranche due 2017 priced at par to yield Libor plus 20 bps.

The notes sold in line with price talk.

There was also $500 million of 4.15% notes due 2044 priced at 99.658 to yield 4.17%, or Treasuries plus 110 bps.

Pricing was at the tight end of talk.

BNP Paribas Securities Corp., Goldman Sachs, JPMorgan, MUFG and Wells Fargo Securities are the bookrunners.

Proceeds will be used to repurchase eight series of tax-exempt bonds, to repay intercompany short-term debt under its money-pool borrowing arrangement with Duke Energy Corp. and for general corporate purposes.

Raleigh, N.C.-based Duke Energy Progress generates and distributes electricity in North Carolina and South Carolina.

Nationwide new issue

Nationwide Financial Services priced a $400 million issue of 5.3% 30-year senior notes (Baa1/BBB+/) on Monday at Treasuries plus 225 bps, a market source said.

Pricing was at 99.643 to yield 5.324%.

The deal was done under Rule 144A and Regulation S

BofA Merrill Lynch, JPMorgan, Morgan Stanley and Wells Fargo Securities were the bookrunners.

The unit of the insurance company is based in Columbus, Ohio.

DTE Energy prices tight

DTE Energy priced $300 million of 2.4% five-year senior notes with a spread of Treasuries plus 80 bps, according to an informed source and an FWP filed with the SEC.

The notes (A3/BBB/BBB) sold at the tight end of price talk.

Pricing was at 99.882 to yield 2.425%.

JPMorgan, RBS Securities Inc. and UBS Securities LLC were the bookrunners.

Proceeds will be used to repay short-term borrowings and for general corporate purposes.

DTE is a Detroit-based utility involved in the development and management of energy-related businesses and services nationwide.

Interstate P&L debentures

Interstate Power & Light sold $250 million of 3.25% 10-year senior debentures (A3/A-/) on Monday at Treasuries plus 100 bps, according to an informed source and an FWP filed with the SEC.

Pricing was at 99.255 to yield 3.338%.

The notes were sold at the tight end of talk.

Barclays, BNY Mellon Capital Markets LLC and Goldman Sachs were the joint bookrunners.

The company plans to use the proceeds for general corporate purposes, which may include the repayment or refinancing of debt, acquisitions, working capital, capital expenditures, investments and repurchases and redemptions of securities.

Interstate Power & Light’s 3.25% notes due 2024 firmed to 96 bps offered in aftermarket trading, according to a trader.

Interstate Power & Light is a Cedar Rapids, Iowa-based public utility.

World Bank sets talk

International Bank for Reconstruction and Development (World Bank) is planning to price a benchmark offering of 10-year notes, according to a market source.

The notes are talked in the mid-swaps plus 9 bps.

BNP Paribas Securities, JPMorgan, Morgan Stanley and RBC Capital Markets are the bookrunners.

The issuer is based in Washington, D.C.

Bank/brokerage CDS flat

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

Bank of America Corp.'s CDS costs were 2 bps wider at 68 bps bid, 71 bps offered. Citigroup Inc.'s CDS costs were 2 bps higher at 68 bps bid, 71 bps offered. JPMorgan Chase & Co.'s CDS costs rose 1 bp to 58 bps bid, 61 bps offered. Wells Fargo & Co.'s CDS costs were 2 bps higher at 46 bps bid, 49 bps offered.

Merrill Lynch's CDS costs increased 2 bps to 71 bps bid, 74 bps offered. Morgan Stanley's CDS costs were 1 bp higher at 77 bps bid, 80 bps offered. Goldman Sachs Group, Inc.'s CDS costs were also flat at 79 bps bid, 82 bps offered.

Paul Deckelman contributed to this review.

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