eBay, First Republic Bank price new issues; Kommunalbanken plans add-on; AT&T, Verizon ease

By Cristal Cody

Tupelo, Miss., May 30 – eBay Inc. and First Republic Bank tapped the high-grade bond market on Tuesday in an otherwise mostly quiet session following the long holiday weekend.

eBay sold $2.5 billion of senior notes in four tranches. The company dropped a second floating-rate tranche from the deal.

First Republic Bank brought $500 million of five-year senior notes to the market during the session.

Looking ahead to Wednesday, Kommunalbanken AS intends to price a $250 million tap of its senior floating-rate notes due March 17, 2020.

About $20 billion to $25 billion of volume is expected by syndicate sources for the week.

In the secondary market, AT&T Inc.’s 4.25% notes due March 1, 2027 softened 4 basis points.

Verizon Communications Inc.’s 4.125% notes due March 16, 2027 traded 2 bps softer.

The Markit CDX North American Investment Grade index closed steady at a spread of 62 bps.

eBay raises $2.5 billion

eBay priced $2.5 billion of senior notes (Baa1/BBB+/BBB) in four parts in the deal on Tuesday, according to a market source.

eBay sold $500 million of 2.15% three-year notes at a spread of Treasuries plus 75 bps.

The company sold $400 million of floating-rate notes due Jan. 30, 2023 at Libor plus 87 bps.

eBay priced $750 million of 2.75% fixed-rate notes due Jan. 30, 2023 at a Treasuries plus 100 bps spread.

The final $850 million tranche of 3.6% 10-year notes priced with a spread of 140 bps over Treasures.

A three-year floating-rate tranche was dropped from the final sale.

The fixed-rate notes priced on the tight side of guidance.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes, which may include repayment of debt, capital expenditures, share repurchases or possible acquisitions.

eBay is a San Jose, Calif.-based online commerce company.

First Republic sells notes

First Republic Bank placed $500 million of 2.5% five-year senior notes (Baa1/A-/A-) with a spread of Treasuries plus 75 bps, according to a market source.

The notes priced on the tight side of guidance in the Treasuries plus 80 bps area, plus or minus 5 bps.

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

Proceeds will be used for general corporate purposes, which may include funding loans or purchasing investment securities for the company’s portfolio, according to a company news release announcing the sale.

First Republic Bank is a San Francisco-based private bank and wealth management company.

Kommunalbanken eyes tap

Coming up in primary action, Kommunalbanken (Aaa/AAA/) plans to price a $250 million reopening of its senior floating-rate notes due March 17, 2020 on Wednesday, according to a market source.

The notes were initially talked to price in the Libor plus 4 bps area.

BofA Merrill Lynch, BMO Capital Markets Corp. and Scotia Capital (USA) Inc. are the lead managers.

Kommunalbanken originally sold $500 million of the notes on March 10, 2015 at par to yield Libor plus 7 bps. The total outstanding currently is $1.15 billion.

The government-funded lender to municipalities is based in Oslo.

AT&T softens

AT&T’s 4.25% notes due March 1, 2027 eased 4 bps to 173 bps bid in the secondary market on Tuesday, a source said.

The company priced $2 billion of the notes (Baa1/BBB+/A-) on Jan. 31 at a spread of Treasuries plus 180 bps.

AT&T is a Dallas-based telecommunications company.

Verizon eases

Verizon Communications’ 4.125% notes due March 16, 2027 traded 2 bps wider at 149 bps bid in secondary trading, a market source said.

Verizon sold $3.25 billion of the notes (Baa1/BBB+/A-) on March 13 at a spread of Treasuries plus 160 bps.

The telecommunications company is based in New York City.

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