Amgen brings $4.5 billion; Nasdaq prices wide; DirecTV tightens; AT&T mostly better

By Cristal Cody and Aleesia Forni

Virginia Beach, May 19 - The high-grade bond market saw another busy start to its week, with new deals from Amgen Inc., Enable Midstream Partners LP and AmerisourceBergen Corp. pricing on Monday.

Amgen sold the largest deal of the day, bringing a $4.5 billion offering of senior notes in five parts.

A $600 million tranche of three-year floaters priced to yield Libor plus 38 basis points, while $850 million of 1.25% notes due 2017 priced at 50 bps over Treasuries.

Amgen also priced $250 million of five-year floaters yielding Libor plus 60 bps and $1.4 billion of 2.2% notes due 2019 at Treasuries plus 70 bps.

There was also a $1.4 billion tranche of 10-year notes priced with a spread of Treasuries plus 110 bps.

All three tranches sold in line with initial guidance.

Meanwhile, Enable Midstream issued $1.65 billion of notes in five-, 10- and 30-year maturities, according to an informed source.

The oil and gas company sold $500 million of 2.4% five-year notes at Treasuries plus 87.5 bps.

A $600 million tranche of 3.9% 10-year notes priced at 137.5 bps over Treasuries, while a $550 million tranche of 30-year bonds priced at Treasuries plus 162.5 bps.

The session also saw AmerisourceBergen bring to market $1.1 billion of notes priced in three- and 10-year tranches, both selling at the tight end of talk.

There was $600 million of 1.15% three-year notes priced with a spread of 40 bps over Treasuries.

AmerisourceBergen also priced $500 million of 3.4% notes due 2024 at Treasuries plus 90 bps.

Kimberly-Clark Corp. sold $600 million of senior notes in two tranches during the session.

A $300 million two-year floating-rate note priced at par to yield Libor plus 5 bps.

There was also a $300 million tranche of 1.9% five-year notes priced at Treasuries plus 37.5 bps.

Both tranches priced tight of initial guidance.

In other market action on Monday, Nasdaq OMX Group Inc. sold $500 million of 4.25% 10-year notes on Monday with a spread of Treasuries plus 175 bps.

A market source noted that pricing was wide of initial guidance, which was set in the Treasuries plus 160 basis points area.

Highwoods Realty LP sold an upsized $300 million of 3.2% seven-year senior notes on Monday at Treasuries plus 130 bps, at the tight end of the Treasuries plus 135 bps area talk.

In forward calendar news, KfW announced plans to price an offering of two-year notes via three bookrunners.

In total, about $8.6 billion of investment-grade paper priced during Monday's session.

One source said he expects the bulk of the week's supply to be sold during the first part of the week, similar to what the market saw during the previous week's primary.

However, unlike the previous week, the source doubts the week's total will surpass $30 billion.

"More like $20 [billion] to $25 billion," he said.

New issues traded mostly 1 bp to 2 bps better, according to market sources.

Highwoods Realty's 3.2% notes due 2021 firmed about 1 bp in aftermarket trading, a trader said.

Kimberly-Clark's floating-rate notes due 2016 were not seen in the secondary market, while the company's tranche of 1.9% notes due 2019 traded about 1½ bps tighter, a trader said.

AmerisourceBergen's two tranches of notes tightened 1 bp to 2 bps in aftermarket trading, a trader said.

New paper from Amgen, Nasdaq OMX and Enable Midstream also were active in secondary trading.

In other trading on Monday, DirecTV Holdings LLC's 4.45% notes due 2024 were "about 15 to 20 bps tighter," a trader said.

The company's notes firmed on the weekend news that AT&T Inc. will acquire the satellite provider in a cash and stock deal valued at about $48.5 billion.

AT&T's 3.9% notes due 2024 (A3/A-/A) traded mostly better but on little trading action in the paper, according to market sources.

Moody's Investors Service announced that it placed A&T's A3 ratings on review for downgrade following the deal agreement.

The Markit CDX North American Investment Grade series 22 index headed out flat at a spread of 65 bps.

Amgen brings $4.5 billion

Amgen was in Monday's market with a $4.5 billion offering of senior notes (Baa1/A/BBB) in five tranches, according to a market source.

The sale included $600 million of three-year floaters priced at par to yield Libor plus 38 bps.

An $850 million tranche of 1.25% three-year notes priced at 50 bps over Treasuries, or 99.891, to yield 1.287%.

There was also $250 million of five-year floaters sold at par to yield Libor plus 60 bps.

A $1.4 billion tranche of 2.2% notes due 2019 sold at Treasuries plus 70 bps.

The notes sold at 99.807 to yield 2.241%.

Finally, $1.4 billion of 10-year notes sold at 110 bps over Treasuries, or 99.834, to yield 3.645%.

Morgan Stanley & Co. LLC was the global coordinator for all five tranches of notes.

Barclays and Goldman Sachs & Co. were the joint bookrunners for the three- and 10-year tranches, while Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners for the notes due 2019.

Amgen's notes due 2017 were not seen in aftermarket trading, a trader said.

The company's notes due 2019 traded at 65 bps bid, 63 bps offered.

The notes due 2024 headed out at 108 bps bid, 104 bps offered in secondary trading.

Proceeds will be used to either repurchase all of subsidiary ATL Holdings Ltd.'s class A preferred shares or to repay the company's term loan credit agreement. Remaining proceeds will be used to repay debt and for general corporate purposes.

The manufacturer and marketer of human therapeutics based upon advances in cellular and molecular biology is based in Thousand Oaks, Calif.

Enable Midstream three-parter

Enable Midstream Partners priced $1.65 billion of senior notes in three tranches due 2019, 2024 and 2044 on Monday, according to an informed source.

The sale included a $500 million of 2.4% five-year notes priced with a spread of Treasuries plus 87.5 bps.

There was also $600 million of 3.9% 10-year notes, which priced at 137.5 bps over Treasuries.

A third tranche was $550 million of notes due 2044 sold with a spread of Treasuries plus 162.5 bps.

In the secondary market, Enable Midstream's notes due 2019 traded at 82 bps bid, 81 bps offered, a trader said.

The notes due 2024 were quoted at 135 bps bid, 133 bps offered.

The bonds due 2044 traded at 160 bps bid, 158 bps offered, according to the trader.

BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, RBC Securities LLC, RBS Securities Inc., Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. were the bookrunners for the Rule 144A and Regulation S deal.

The oil and gas company is based in Houston.

AmerisourceBergen prices tight

AmerisourceBergen sold a $1.1 billion issue of senior notes (Baa2/A-/) in two tranches due in 2017 and 2024, according to an informed source and an FWP filed with the Securities and Exchange Commission.

A $600 million tranche of 1.15% three-year notes priced at 40 bps over Treasuries, or 99.892, to yield 1.187%.

There was also $500 million of 3.4% notes due 2024 priced at 99.715 to yield 3.434%, or Treasuries plus 90 bps.

Both tranches sold at the tight end of talk.

AmerisourceBergen's 1.15% notes due 2017 were quoted in the secondary late in the day at 39 bps bid, 38 bps offered, a trader said.

The 3.4% notes due 2024 traded tighter at 88 bps bid, 86 bps offered.

Proceeds will be used to redeem all of the company's 5.875% senior notes due on Sept. 15, 2015.

Remaining proceeds will be used for general corporate purposes, including repurchases of shares of the company's common stock under its share repurchase programs.

BofA Merrill Lynch, JPMorgan and Mitsubishi UFJ Securities are the joint bookrunners.

Based in Chesterbrook, Pa., AmerisourceBergen provides drug distribution and related services to pharmaceutical manufacturers in the United States and Canada.

Kimberly-Clark new issue

Kimberly-Clark priced $600 million of senior notes (A2/A/) in two parts, according to a syndicate source and an FWP filed with the SEC.

The sale included $300 million of floating-rate notes due 2016 at par to yield Libor plus 5 bps.

A second tranche was $300 million of 1.9% five-year notes due 2019 sold with a spread of Treasuries plus 37.5 bps.

Pricing was at 99.948 to yield 1.911%.

Both tranches sold tight of initial guidance.

Kimberly-Clark's 1.9% notes due 2019 firmed to 36 bps bid, 34 bps offered in secondary trading, according to a trader.

The bookrunners were Barclays, Citigroup Global Markets, Goldman Sachs and JPMorgan.

Proceeds will be used for general corporate purposes.

Kimberly-Clark was last in the market with $850 million of notes in three parts on May 20, 2013.

The sale included $250 million of three-year floating-rate notes priced at par to yield Libor plus 12 bps, $350 million of 2.4% 10-year notes sold with a spread of 70 bps over Treasuries and $250 million of 3.7% 30-year bonds priced at Treasuries plus 80 bps.

The consumer paper products company is based in Irving, Texas.

Nasdaq prices wide

Nasdaq OMX Group sold $500 million of 4.25% 10-year notes on Monday with a spread of Treasuries plus 175 bps, according to an informed source.

Pricing was wide of guidance, which was set in the Treasuries plus 160 bps area.

The notes (Baa3/BBB/) sold at 99.653 to yield 4.293%.

Nasdaq OMX's notes due 2024 were seen in the aftermarket trading at 170 bps offered, a trader said.

The joint bookrunners were JPMorgan and Wells Fargo Securities LLC.

Proceeds will be used for general corporate purposes, which may include acquisitions, repayment of debt, capital expenditures and working capital.

The global exchange group is based in New York City.

Highwoods upsizes

Highwoods Realty priced an upsized $300 million of 3.2% senior notes (Baa2/BBB/) due 2021 on Monday with a spread of Treasuries plus 130 bps, according to an informed source and an FWP filing with the SEC.

The notes sold at the tight end of the Treasuries plus 135 bps area talk.

Pricing was at 98.983 to yield 3.363%.

Highwoods Realty's 3.2% notes due 2021 traded slightly better at 129 bps bid, 127 bps offered in the secondary market, a trader said.

Bookrunners were Wells Fargo Securities, Jefferies & Co. Inc., BB&T Capital Markets, Mitsubishi UFJ Securities and U.S. Bancorp Investments.

The company plans to use the proceeds to reduce amounts outstanding under its $475 million revolving credit facility and for general corporate purposes.

The real estate investment trust is based in Raleigh, N.C.

KfW plans two-year notes

KfW plans to price an offering of notes due 2016, according to an informed source.

BNP Paribas Securities, Credit Suisse Securities and RBC Capital Markets are the joint bookrunners.

The German government-owned development bank is based in Frankfurt.

DirecTV tightens

DirecTV's 4.45% notes due 2024 (Baa2/BBB/) tightened to 117 bps offered on Monday from the 132 bps offered area on Friday, a trader said.

The notes were little changed at 105.64 over the day from 105.67 on Friday, according to a market source.

DirecTV Holdings and DirecTV Financing Co. sold $1.25 billion of the notes on March 17 at 99.63 to yield 4.496%, or a spread of Treasuries plus 180 bps.

The digital entertainment company is based in El Segundo, Calif.

AT&T better

AT&T's 3.9% notes due 2024 (A3/A-/A) traded in the 95 bps area on Monday in light trading, a trader said.

The notes were not active in the secondary market on Friday, and the issue was last seen in the 109 bps area on Thursday, according to the trader.

The notes rose to 103.56 during Monday's session, up from 102.75 on Friday, according to a market source.

AT&T sold $1 billion of the 10-year notes on March 5 at 99.696 to yield 3.937%, or Treasuries plus 125 bps.

The telecommunications company is based in Dallas.

Bank/brokerage CDSs mostly lower

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

Bank of America Corp.'s CDS costs firmed 1 bp to 66 bps bid, 69 bps offered. Citigroup Inc.'s CDS costs declined 1 bp to 69 bps bid, 72 bps offered. JPMorgan Chase & Co.'s CDS costs firmed 1 bp to 54 bps bid, 57 bps offered. Wells Fargo & Co.'s CDS costs were unchanged at 34 bps bid, 37 bps offered.

Merrill Lynch's CDS costs firmed 1 bp to 70 bps bid, 73 bps offered. Morgan Stanley's CDS costs fell 1 bp to 74 bps bid, 77 bps offered. Goldman Sachs Group, Inc.'s CDS costs were flat at 81 bps bid, 84 bps offered.

Paul Deckelman contributed to this review

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