Midday Commentary: Deal flow continues with Deere, ACE, Nomura; Tuesday's bonds trade tighter

By Andrea Heisinger

New York, March 6 - A full set of new issues was announced in Wednesday's session, including those from ACE INA Holdings, Inc., Tupperware Brands Corp., CareFusion Corp., John Deere Capital Corp. and Nomura Holdings, Inc.

A benchmark-sized crossover trade from International Lease Finance Corp. is being done off of the high-grade desk.

ACE is pricing $950 million in two parts, while John Deere is selling in a possible three tranches including a floating-rate note. CareFusion is selling $300 million of 10-year notes via Rule 144A and Regulation S, and Tupperware is reopening a bond due 2021 to add $200 million.

Tokyo-based Nomura is tapping the market for three-year bonds in two parts, one with a fixed rate and the other a floating rate.

The secondary side of the market was said to be "off a touch" from Tuesday's tone and volume, according to a trader.

Volume sat at about $4.1 billion at midday, the trader said.

Among recent sales seen trading were the two tranches sold Tuesday by Burlington Northern Santa Fe LLC and issues from Markel Corp. and McKesson Corp.

Burlington Northern's 3% notes due 2023 were seen tighter than Tuesday, at an offer of 103 basis points over Treasuries, a trader said. The notes were sold at 110 bps.

The 4.45% bonds due 2043 were also better, at a bid of 130 bps and offer of 128 bps. The bonds were sold at 133 bps.

The 3.625% notes due 2023 from Markel remained 6 bps tighter than their pricing level of 175 bps, but unchanged from the previous day's trading at 169 bps bid, 164 bps offered. The 5% 30-year bonds from the sale were slightly tighter at 188 bps bid, 187 bps offered. The bonds were priced at 200 bps over Treasuries.

Meanwhile, McKesson's 1.4% five-year notes were seen in an odd lot trade at 61 bps - lower than the 67 bps spread. A 2.85% note due 2023 from the same issue traded 6 bps better at a bid of 91 bps. The notes were sold at 97 bps over Treasuries.

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