Hungary sells $3.25 billion notes in two tranches; Russia's NLMK notes widen in trading

By Aleesia Forni

Columbus, Ohio, Feb. 12 - Hungary sold a two-part issue of dollar-denominated notes on Tuesday, as the tone of the market "remains steady," a London-based analyst said.

The sovereign priced $3.25 billion notes in five- and 10-year tranches during the session.

In other primary action, OAO Novatek set talk for its proposed four-year, ruble-denominated notes at 7¾%.

Meanwhile, the secondary saw OJSC Novolipetsk Steel's (NLMK) recent issuance trading better at the session's open, with one analyst seeing the notes 6 basis points tighter.

Later in the day, a trader quoted the notes at 100 1/8 on the bid side near the end of London's session.

Hungary sells $3.25 billion

Hungary priced $3.25 billion of notes in two tranches on Tuesday, according to a market source.

The deal included a $1.25 billion tranche of five-year notes, which sold at a spread of 335 bps over Treasuries.

A $2 billion issue of 10-year notes was also sold at a spread of 345 bps over Treasuries.

Goldman Sachs, Deutsche Bank, BNP Paribas and Citigroup were bookrunners for the transaction.

NLMK book hits $2.7 billion

The final book for Monday's new issue from Russia's NLMK reached $2.7 billion, according to a market source.

The $800 million five-year notes were quoted "as high as 100.4375" during London's session, a trader there said.

The source continued that the notes last priced at 100 1/8 bid, 1003/8 offered prior to Tuesday's close.

The Lipetsk, Russia-based steel company sold the notes at par.

Novatek sets talk

Russia's Novatek set talk for its proposed issue of four-year ruble-denominated notes at 7¾%, according to a market source.

Barclays, Gazprombank, Goldman Sachs and Sberbank are the bookrunners for the Rule 144A and Regulation S deal.

The company previously held a roadshow in London and New York.

Novatek is an independent gas producer based in Tarko-Sale, Russia.

J&F pulls deal

Tuesday's session saw Brazil's J&F Participacoes SA postpone its previously announced $300 million offering of notes due 2020, according to a market source.

Barclays, Morgan Stanley, Banco do Brasil and Banco Santander were the bookrunners for the deal.

The beef processing and marketing company is based in Sao Paulo.

Christine Van Dusen contributed to this review.

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