Wells Fargo, Fidelity bring new deals; Apollo upsizes; Wells Fargo, Fidelity firm in trading

By Aleesia Forni

Virginia Beach, May 27 - New deals from Wells Fargo & Co., Fidelity National Information Services, Inc. and Apollo Management Holdings LP priced to kick of the Memorial Day holiday-shortened week in the investment-grade primary market.

Wells Fargo priced the largest new issue of the day, selling $4.5 billion of senior notes in three tranches.

The sale included $700 million of three-year floaters yielding Libor plus 30 basis points and $1.3 billion of 1.15% three-year notes sold with a spread of Treasuries plus 42 bps.

The third tranche was $2.5 billion of 4.1% 12-year subordinated notes, which priced at Treasuries plus 160 bps.

Fidelity National Information Services, Inc. brought to market $1 billion of senior notes in two parts, an informed source said.

A $300 million tranche of 1.45% three-year notes priced at Treasuries plus 70 bps, while $700 million of 3.875% notes priced at Treasuries plus 140 bps.

Both tranches sold at the tight end of talk.

In other primary action, Apollo Management sold an upsized $500 million of 4% 10-year senior notes at the tight end of talk with a spread of Treasuries plus 152 bps.

Meanwhile, Marsh & McLennan Cos., Inc. sold a $400 million issue of 3.5% 10-year senior notes at the tight end of talk at Treasuries plus 100 bps.

The session also saw General Electric Capital Corp. sell a $150 million tap of its 4.375% senior notes due 2020 at Treasuries plus 109 bps.

The original $2 billion deal sold with a spread of Treasuries plus 175 bps in September 2010.

In total, more than $6.5 billion of high-grade paper sold during the session.

One source said he expects the week's primary activity to be "lighter than we've seen in recent weeks," though he added the primary "could get busier as the week goes on."

Sources are expecting around $20 billion of supply this week.

The investment-grade bond market returned after the Memorial Day holiday to tighter spreads, and spreads remained better over the session, according to market sources.

The Markit CDX North American Investment Grade series 22 index firmed 1 basis point to a spread of 62 bps.

New paper headed out mostly stronger in the secondary market, according to traders.

Wells Fargo's tranche of 1.15% notes due 2017 traded 12 bps better on the bid side, while the 4.1% notes due 2026 firmed 4 bps, a trader said.

Fidelity National's 1.45% notes due 2017 tightened 7 bps in the secondary market, a trader said. The company's tranche of 3.875% notes due 2024 firmed 2 bps in aftermarket trading, according to traders.

Apollo Global Management's 4% notes due 2024 traded about 3 bps better, according to a trader.

In other new issue trading, Marsh & McLennan's 3.5% notes due 2024 were seen going out 1 bp wider, a trader said.

Wells Fargo prices $4.5 billion

Wells Fargo & Co. was in Tuesday's market with a $4.5 billion three-part offering of senior notes, according to an informed source.

The bank priced $700 million three-year floating-rate notes at par to yield Libor plus 30 bps.

There was also $1.3 billion of 1.15% three-year notes priced at 99.874 to yield 1.193%, or Treasuries plus 42 bps.

A $2.5 billion 4.1% 12-year subordinate note sold with a spread of Treasuries plus 160 bps.

The notes sold at 99.897 to yield 4.111%.

Wells Fargo's 1.15% notes due 2017 tightened to 30 bps bid, 25 bps offered in the secondary market, a trader said.

The 4.1% notes due 2026 firmed to 156 bps bid, 155 bps offered.

Wells Fargo & Co. LLC was the bookrunner.

Wells Fargo is a San Francisco-based bank.

Fidelity National two-parter

Fidelity National Information Services, Inc. priced $1 billion of senior notes (Baa3/BBB/BBB) in two tranches, according to an informed source and an FWP filed with the Securities and Exchange Commission.

The company priced $300 million of 1.45% three-year notes at 99.909 to yield 1.481%, or Treasuries plus 70 bps.

Fidelity also sold $700 million of 3.875% notes with a spread of Treasuries plus 140 bps. Pricing was at 99.622 to yield 3.921%.

Fidelity National's 1.45% notes due 2017 tightened to 63 bps bid, 60 bps offered in aftermarket trading, a trader said.

The 3.875% notes due 2024 were quoted tighter at 138 bps bid, 133 bps offered in the secondary market.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mitsubishi UFJ Securities (USA) Inc., BofA Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners.

Proceeds will be used to repay the company's revolving credit facility, to repay up to $550 million of its term loan A-4 and for general corporate purposes. The company also plans to call for redemption its $500 million of 7.875% senior notes due 2020.

The notes are guaranteed by current and future domestic subsidiaries of Fidelity National.

Fidelity National is a Jacksonville, Fla.-based banking and payment technologies company.

Apollo upsizes

Apollo Management Holdings, an indirect subsidiary of Apollo Global Management LLC, priced an upsized $500 million of 4% senior notes due 2024 at 99.772 to yield 4.034%, or Treasuries plus 152 bps, according to a market source and a company release.

The notes (/A/A-) were sold via Rule 144A and Regulation S.

Proceeds will be used to repay a portion of the company's outstanding term loans under its existing credit facilities.

Apollo Global Management's 4% notes due 2024 headed out tighter in aftermarket trading at 149 bps bid, 146 bps offered, a trader said.

Late afternoon, the 10-year notes were seen at 147 bps offered, according to a trader at another desk.

Any remaining net proceeds will be used for general corporate purposes.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBC Capital markets LLC, UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.

Apollo is a global alternative investment manager based in New York.

Marsh & McLennan prices tight

Marsh & McLennan priced $400 million of 3.5% senior notes due 2024 on Tuesday with a spread of Treasuries plus 100 bps, according to a market source and a FWP filing with the Securities and Exchange Commission.

Pricing was at the tight end of talk.

The notes (Baa1/A-/BBB+) priced at 99.807 to yield 3.523%.

Marsh & McLennan's 3.5% notes due 2024 traded slightly wider at 101 bps bid, 99 bps offered in the secondary market, according to a trader.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays and Citigroup Global Markets Inc. were the joint bookrunners.

Proceeds will be used for general corporate purposes.

The professional services firm is based in New York City.

GE Capital add-on

GE Capital priced a $150 million add-on to its 4.375% senior notes due Sept. 16, 2020 at 110.107 to yield 2.622%, or Treasuries plus 109 bps, according to a FWP with the Securities and Exchange Commission.

The underwriter was U.S. Bancorp Investments Inc.

The original $2 billion issue priced at Treasuries plus 175 bps on Sept. 13, 2010.

The funding arm of General Electric Co. is based in Fairfield, Conn.

Bank, brokerage CDS costs decline

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

Bank of America Corp.'s CDS costs firmed 1 bp to 68 bps bid, 71 bps offered. Citigroup Inc.'s CDS costs firmed 1 bp to 69 bps bid, 72 bps offered. JPMorgan Chase & Co.'s CDS costs declined 2 bps to 54 bps bid, 57 bps offered. Wells Fargo & Co.'s CDS costs tightened 2 bps to 33 bps bid, 36 bps offered.

Merrill Lynch's CDS costs firmed 1 bp to 73 bps bid, 76 bps offered. Morgan Stanley's CDS costs firmed 1 bp to 72 bps bid, 76 bps offered. Goldman Sachs Group, Inc.'s CDS costs declined 1 bp to 81 bps bid, 84 bps offered.

Paul Deckelman contributed to this review

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