ADM remarkets; Brandywine, Delta price; Time Warner bonds lose gains; others trade tighter

By Andrea Heisinger

New York, March 30 - Archer-Daniels-Midland Co. sold two tranches of notes in a remarketing on Wednesday and was the latest in a string of large offerings so far this week.

The crop processing company sold $1.75 billion of notes with maturities of 2021 and 2041. The deal was a remarketing of $1.75 billion of notes due 2041 originally sold as components of equity units.

A sale of 10-year split-rated senior notes was priced by Verisk Analytics, Inc. after going overnight. The $450 million offering was upsized from $350 million.

Another split-rated deal came from Brandywine Operating Partnership LP. The real estate investment trust priced $325 million of seven-year notes.

Aircraft leasing company Aviation Capital Group Corp. more than doubled the size of its sale from $350 million to $750 million of 10-year notes, a source said. The notes sold in line with guidance.

Circuit maker Analog Devices, Inc. priced $375 million of five-year notes by mid-afternoon.

Delta Air Lines Inc. sold a $292.75 million deal of Class A pass-through certificates due in 2019 in order to finance aircraft.

With the end of the month on Thursday, sources said that the market should be quiet.

"I don't know of anyone with deals," a syndicate source said. "Should be slow."

The month of March is already a record month for issuance largely due to the number of benchmark-size deals in the market for the past two weeks following two weeks of volatile conditions.

"We know it's a record, but we won't see numbers until tomorrow," one source said.

New and recent bonds fared better in trading than other names had earlier in the week.

Sources said the new Archer Daniels bonds tightened about 5 basis points in the gray market and more in trading. Other bonds from Analog Devices and Verisk Analytics were quoted at least 5 to 10 bps better.

Time Warner Inc. saw its two new bonds widen from where they were trading on Tuesday to around the pricing levels, a trader said.

The Delta pass-through certificates were seen trading up slightly from their price at par.

Treasury yields tightened from the previous day - especially the five-year and 10-year maturities. The five-year note came in by 5 bps to 2.17% and the 10-year also tightened by 5 bps to 3.44%, a source said.

ADM deal oversubscribed

Archer-Daniels-Midland remarketed $1.75 billion of debentures (A2/A/A) in two tranches late in the day, said a source who worked on the deal.

The sale had about $10 billion on the books, he added.

The $750 million of 4.479% 10-year notes sold at a spread of Treasuries plus 95 bps.

A second tranche was $1 billion of 5.765% 30-year bonds priced at 120 bps over Treasuries.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. were remarketing agents.

The proceeds are being used to purchase treasury portfolios then used to secure purchase contract obligations of holders of corporate units.

The remarketed $1.75 billion of 4.7% debentures due 2041 was originally issued as components of 35,000 equity units issued in June of 2008.

Archer Daniels last priced bonds in a $1.5 billion sale of floating-rate notes due 2012 on Feb. 9.

The 10-year notes tightened immediately by 4 bps in the gray market, a trader said. They moved in further in the secondary to a bid of 89 bps and offer of 88 bps, or between 6 and 7 bps better.

The 30-year bond performed slightly better. It also moved in 4 bps in the gray market to a bid of 116 bps and was later seen at a bid of 109 bps and offered at 108 bps.

The crop processor is based in Decatur, Ill.

Verisk Analytics upsizes

Verisk Analytics sold an upsized $450 million of 5.8% 10-year split-rated senior notes (Ba1/BBB-/A) at Treasuries plus 237.5 bps, according to a press release and market source.

The size was increased from the $350 million announced on Tuesday.

Bookrunners were J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Inc.

Proceeds are being used for general corporate purposes, including debt repayment and/or acquisitions.

The sale is guaranteed by Insurance Services Office, Inc. and other subsidiaries that guarantee the company's revolving credit facility.

The notes moved tighter in the secondary, traders said. They were quoted first at a bid of 228 and offer of 224 by one trader and later at a 227 bps bid and 222 bps offer.

The financial services company is based in Jersey City, N.J.

Analog Devices five-years

Analog Devices sold $375 million of 3% five-year senior notes (A3/A-) to yield 90 bps over Treasuries, said a source away from the said.

Credit Suisse Securities (USA) LLC was active bookrunner and Merrill Lynch, Pierce, Fenner & Smith Inc. was passive

Proceeds are being used for general corporate purposes, including capital expenditures, common stock repurchase, dividend payments and acquisitions.

The 3% notes due 2016 made strong gains once freed for trading, a market source said. They were quoted about 6 bps better on the bid side at 84 bps and about 9 bps better on the offer side at 81 bps.

The maker of circuits for electronic equipment is based in Norwood, Mass.

Aviation Capital doubles size

Aviation Capital Group priced a hugely upsized $750 million of 6.75% 10-year senior notes at par to yield 6.75%, a market source said.

The notes sold in line with guidance in the 6.75% yield area, a source said. The size of the sale was increased from $350 million.

The securities (BBB/BBB-) sold at a spread of Treasuries plus 329.6 bps under Rule 144A.

Bookrunners were BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC.

Proceeds are being used for general corporate purposes.

The commercial jet aircraft leasing company is based in Newport Beach, Calif.

Delta sells pass-throughs

Atlanta-based commercial airline Delta priced $292.75 million of Class A pass-through certificates, series 2011-1 at par to yield 5.3%, a market source said.

The securities have a final expected distribution in 2019 and legal distribution in 2020. The average expected life is 5.4 years.

The certificates (Baa2/A-) sold at a spread of 310.5 bps over Treasuries.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co., Inc. were bookrunners.

The 5.3% eight-year certificates were quoted as having moved up from pricing at par, a trader said soon after they sold. They were quoted at 100.5 to 101.

Proceeds will be held in escrow and used to aquire equipment notes to buy aircraft.

Brandywine's seven-years

Brandywine Operating Partnership priced an upsized $325 million of 4.95% seven-year notes to yield 5.137%, a source close to the sale said.

The size was increased from $250 million and the notes sold in line with guidance in the low-to-mid 200 bps, the source said.

"There was interest enough," the source noted. "I think the company originally wanted to do more anyway."

The notes (Baa3/BBB-/BB+) sold at 98.907.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were bookrunners.

Proceeds are being used to reduce borrowings under a revolving credit facility and for general corporate purposes.

The deal is guaranteed by Brandywine Realty Trust.

The real estate investment trust for office and industrial properties is based in Radnor, Pa.

Time Warner loses gains

The two tranches of notes priced on Tuesday by Time Warner were wider than where they were trading soon after pricing, a source said.

The 6.25% bonds due 2041 fared best and were between 2 and 4 bps better than their 180 bps price at a bid of 178 bps and offer of 176 bps.

A second tranche of 4.75% notes due 2021 were sold at 140 bps over Treasuries and quoted at that level on the bid side with an offer of 138 bps.

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