EnLink, Nomura price as week's total nears $30 billion; energy bonds tighten

By Cristal Cody and Aleesia Forni

Virginia Beach, March 12 - EnLink Midstream Partners LP, Nomura Holdings Inc. and CedarPoint Energy Houston Electric LLC were among issuers entering Wednesday's primary, selling more than $8 billion of investment-grade paper.

EnLink Midstream Partners came to market with $1.2 billion of senior notes priced in three tranches.

There was a $400 million tranche of 2.7% five-year notes priced at Treasuries plus 115 basis points and a $450 million tranche of 4.4% 10-year notes priced at Treasuries plus 170 bps.

A $350 million tranche of 5.6% 30-year bonds sold at Treasuries plus 195 bps.

All three tranches priced at the tight end of talk.

Nomura Holdings priced a $1 billion issue of five-year senior notes with a spread of Treasuries plus 130 bps.

The notes sold in line with price talk.

Also on Wednesday, Husky Energy Inc. sold $750 million of 10-year notes at Treasuries plus 130 bps.

Pricing was at the tight end of talk.

CedarPoint Energy Houston Electric sold an upsized $600 million of 4.5% 30-year general mortgage bonds at Treasuries plus 90 bps.

Quest Diagnostics, Inc. brought to market a $600 million issue of senior notes in five- and 10-year tranches on Wednesday.

The company priced $300 million of 2.7% notes due 2019 at Treasuries plus 113 bps and $300 million of 4.25% notes due 2024 at 158 bps over Treasuries.

Both tranches sold at the tight end of talk.

Landeskreditbank Baden-Wurttemberg-Forderbank (L-Bank) was also in Wednesday's market, pricing $2 billion of 0.875% three-year notes at mid-swaps plus 10 bps.

Meanwhile, the European Investment Bank sold a $3 billion issue of 2.5% notes due 2021 at mid-swaps plus 22 bps.

Pricing was in line with talk.

In other market action, Federal Home Loan Bank System said that it would not issue Global Notes in March.

Supply so far this week has reached nearly $30 billion, though the bulk of that total was issued at the start of the week.

"The market is just digesting all the supply we've seen lately," a market source said on Wednesday.

He added that he predicts Thursday's pace of issuance to be similar to Wednesday's.

Bonds continued to trade softer over the day, and the Markit CDX North American Investment Grade series 21 index eased 1 bp to a spread of 65 bps, according to informed sources.

New issues in the energy sector traded mostly better, according to market sources.

Husky Energy's 4% notes due 2024 firmed 6 bps in aftermarket trading, a trader said.

CenterPoint Energy's 4.5% bonds due 2044 traded 4 bps better going out, according to a market source.

Quest's two tranches of notes traded flat to about 1 bp better in the secondary market, a trader said.

EnLink's 5.6% bonds due 2044 tightened 4 bps on the offered side, according to a trader.

EnLink three-parter

EnLink Midstream Partners priced a $1.2 billion three-part offering of senior notes (Baa3/BBB/) on Wednesday, according to a market source.

The sale included $400 million of 2.7% notes due 2019 priced at 99.85 to yield 2.731%, or Treasuries plus 115 bps.

There was also a $450 million tranche of 4.4% notes due 2024 sold with a spread of Treasuries plus 170 bps.

The notes priced at 99.83 to yield 4.421%.

A third tranche was $350 million of 5.6% 30-year bonds priced at Treasuries plus 195 bps, or 99.925, to yield 5.605%.

All three tranches sold at the tight end of talk.

EnLink's 2.7% notes due 2019 and 4.4% notes due 2024 were not initially seen in aftermarket trading, a source said.

The 5.6% bonds due 2044 tightened in secondary trading to 191 bps offered.

Proceeds will be used to fund a tender offer, to reduce borrowings under the company's revolving credit facility and for general corporate purposes, including growth capital expenditures, according to a 424B2 filed with the Securities and Exchange Commission.

The bookrunners were BofA Merrill Lynch, Citigroup Global Markets Inc., RBC Capital Markets LLC, BMO Capital Markets, Mitsubishi UFJ Securities Inc., BBVA Securities Inc., Comerica Securities, J.P. Morgan Securities LLC, RBS Securities Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC.

EnLink Midstream Partners, formerly known as Crosstex Energy, LP, is a midstream natural gas company based in Dallas.

Nomura sells $1 billion

Nomura Holdings priced $1 billion of senior notes (Baa3/BBB+/), series A, on Wednesday with a spread of Treasuries plus 130 bps, according to an informed source and an FWP filed with the SEC.

Pricing was at 99.403 to yield 2.879%.

The notes priced in line with talk.

Nomura Securities International Inc. was the bookrunner.

The financial holding company is based in Tokyo.

Husky Energy 10-years

Husky Energy priced $750 million of senior notes due 2024 with a spread of Treasuries plus 130 bps, according to a market source and an FWP filed with the SEC.

The notes (Baa2/BBB+/) priced at 99.791 to yield 4.025%.

Pricing was at the tight end of talk.

Husky Energy's 4% notes due 2024 tightened to 124 bps bid, 123 bps offered in secondary trading, a trader said.

JPMorgan, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC are the bookrunners.

Proceeds will be used for general corporate purposes, which may include the purchase, redemption or payment of the company's outstanding 5.9% notes due 2014.

The petroleum company is based in Calgary, Alta.

CedarPoint upsizes

CedarPoint Energy priced an upsized $600 million sale of 4.5% general mortgage bonds, series X, due 2044 with a spread of Treasuries plus 90 bps, according to an FWP filing with the SEC.

The notes priced at 98.925 to yield 4.566%.

CenterPoint Energy's 4.5% bonds due 2044 traded better in the secondary market at 86 bps bid, 84 bps offered, according to a trader.

BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mitsubishi UFJ, SunTrust Robinson Humphrey Inc. and Wells Fargo were the joint bookrunners.

Proceeds will be used for general limited liability company purposes, including the repayment of short-term notes payable to affiliated companies.

The electric utility is based in Houston.

Quest prices tight

Quest Diagnostics sold $600 million of senior notes (Baa2/BBB+/BBB) in tranches due 2019 and 2024 on Wednesday, according to a market source and an FWP filed with the SEC.

A $300 million tranche of 2.7% five-year notes priced with a spread of Treasuries plus 113 bps.

The notes sold at 99.934 to yield 2.714%.

Quest also sold $300 million of 4.25% notes due 2024 at 99.554 to yield 4.305%, or 158 bps over Treasuries.

Both tranches sold at the tight end of talk.

Quest's 2.7% notes due 2019 firmed to 112 bps bid in secondary trading, a trader said.

The tranche of 4.25% notes due 2024 traded flat at 158 bps bid, 154 bps offered.

Goldman Sachs & Co., RBS, Wells Fargo, JPMorgan and Morgan Stanley were the joint bookrunners.

Proceeds will be used to repay outstanding debt under the company's senior unsecured revolving credit facility and secured receivables credit facility. Any remaining proceeds will be used for general corporate purposes.

The diagnostic testing company is based in Madison, N.J.

EIB new issue

EIB priced $3 billion of 2.5% notes (Aaa/AAA/AAA) due April 15, 2021 at mid-swaps plus 22 bps, according to a market source.

The notes priced in line with talk.

Pricing was at 99.885 to yield 2.518%.

BNP Paribas Securities Corp., Deutsche Bank and JPMorgan were running the books.

The lender for the European Union is based in Kirchberg, Luxembourg.

L-Bank prices

L-Bank priced $2 billion of 0.875% three-year notes at mid-swaps plus 10 bps, according to an informed source.

Pricing was at 99.66 to yield 0.988%.

Barclays, JPMorgan, RBC and Unicredit were the joint bookrunners for the Regulation S deal.

The financial services provider is based in Karlsruhe, Germany.

FHLB passes

The Federal Home Loan Bank System announced on Wednesday that it will not issue Global Notes in March.

The government-sponsored banks for financial institutions are based in Washington, D.C.

Bank/brokerage CDS rise

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

Bank of America Corp.'s CDS costs eased 1 bp to 67 bps bid, 70 bps offered. Citigroup Inc.'s CDS costs rose 1 bp to 79 bps bid, 82 bps offered. JPMorgan Chase & Co.'s CDS costs widened 3 bps to 61 bps bid, 64 bps offered. Wells Fargo & Co.'s CDS costs eased 1 bp to 40 bps bid, 44 bps offered.

Merrill Lynch's CDS costs eased 1 bp to 69 bps bid, 73 bps offered. Morgan Stanley's CDS costs rose 3 bps to 90 bps bid, 95 bps offered. Goldman Sachs Group, Inc.'s CDS costs widened 4 bps to 91 bps bid, 96 bps offered.

Paul Deckelman contributed to this review.

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