AT&T, CBS, Symantec, Rubbermaid among deals as window opens; NiSource prices, steady in trading

By Aleesia Forni and Andrea Heisinger

New York, June 11 - The high-grade bond market made a strong start to the week Monday as deals from names like CBS Corp., Newell Rubbermaid Inc., Symantec Corp. and AT&T Inc. poured into the primary.

Other corporate deals came from PPL Capital Funding, Inc., NiSource Finance Corp., UnionBanCal Corp. and New York Life Global Funding.

Export Development Canada announced a $1 billion offering of three-year notes.

Canada has another deal in the market with Hydro-Quebec announcing an offering of five-year notes.

Astoria Financial Corp. announced plans for a $250 million sale of five-year notes to be priced this week.

The preferred stock market saw a $25-par deal of 60-year subordinated notes unveiled by NextEra Energy Capital Holdings Inc.

Most of the corporate sales were less than $1 billion, but sold in multiple tranches.

AT&T was the exception to that trend, pricing $2 billion in tranches due 2017 and 2022.

Newell Rubbermaid priced $500 million split evenly between notes due in 2015 and 2022.

Mass media company CBS sold an upsized $900 million of guaranteed notes in five-year and 30-year maturities.

Energy holding company NiSource priced $750 million of guaranteed paper due in 2023 and 2043 to repay debt and Symantec priced $1 billion of senior notes in two parts.

Among the smaller trades was PPL Capital Funding with $400 million of 10-year notes.

UnionBanCal priced $400 million of 10-year senior notes to help pay for its acquisition of Pacific Capital Bancorp.

NY Life priced $500 million of two-year floating-rate notes after the deal size was doubled.

A $200 million sale of two-year notes was announced by Zions Bancorporation that will be done via online auction.

Issuers jumped into the market while they could on Monday, following news that Spain had asked for a bailout from euro zone countries, and ahead of elections in Greece over the coming weekend.

The tone had improved throughout the day on Friday following a string of successful, oversubscribed deals in the days before and a rare end-of-week sale from Time Warner Inc.

"Things looked good enough [at the open]," a source said late on Monday.

By day's end, eight corporate deals had priced in the high-grade primary and the pace is expected to slow on Tuesday.

"I think everyone got it out of their system early," a syndicate source said after the close. "I know of a few who will look, but I don't think we'll see as much [as Monday]."

CBS prices tight

CBS sold an upsized $900 million of senior notes (Baa2/BBB/BBB) in two tranches, a syndicate source said.

The deal size was increased from $800 million, the source said.

The $400 million of 1.95% five-year bonds sold at a spread of Treasuries plus 150 bps. The tranche sold tighter than initial talk in the 175 bps area and at the low end of revised guidance in the 155 bps area.

A $500 million tranche of 4.85% 30-year bonds priced at a spread of 230 bps over Treasuries. The bonds were priced tighter than initial guidance in the 240 bps area and at the low end of revised talk in the 235 bps area.

The tranche due 2017 tightened in the secondary, according to a market source, trading at 145 bps bid, 143 bps offered near the New York close.

Additionally, the 30-year bonds widened near the end of the session to 236 bps bid, 226 bps offered.

There was about $3.4 billion in demand for the five-year notes, the source said, with about $2.1 billion for the bonds.

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

Proceeds are being used to repay $152 million of 8.625% debentures due on August 1 at maturity and to redeem $338 million of 5.625% senior notes due on August 15. Any remainder will be used to repurchase or repay other debt including 8.2% senior notes due on May 15, 2014 and for general corporate purposes.

The deal is guaranteed by CBS Operations Inc.

AT&T's two tranches

AT&T priced $2 billion of notes (A2/A-/A) in two parts, an informed source said.

There was about $4 billion on the books, the source said, adding that orders were "skewed towards the five-year."

The $1.15 billion of 1.7% five-year notes priced at a spread of Treasuries plus 105 bps. The notes were sold at the tight end of guidance in the 110 bps area.

A second tranche was a reopening of 3% notes due 2022 to add $850 million. The notes were sold at Treasuries plus 135 bps. The tranche was priced at the low end of price talk in the 140 bps area.

The issue size is now $1.85 billion including $1 billion sold at 105 bps over Treasuries as part of a $3 billion deal in three tranches on February 8.

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

Proceeds are being used for general corporate purposes.

The telecommunications company is based in Dallas.

Symantec sells $1 billion

Symantec sold $1 billion of senior notes (Baa2/BBB/) in two parts, a source close to the deal said.

The $600 million of 2.75% five-year notes priced at a spread of Treasuries plus 210 bps. The tranche was sold at the tight end of guidance in the 215 bps area, plus or minus 5 bps.

The second part was $400 million of 3.95% 10-year paper sold at 245 bps over Treasuries. The notes were priced at the low end of talk in the 250 bps area, plus or minus 5 bps.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC ran the books.

Proceeds are being used for general corporate purposes including retirement or repayment of the company's 1% convertible senior notes due on June 15, 2013.

The security, storage and systems management company is based in Mountain View, Calif.

NiSource's $750 million

NiSource Finance priced $750 million of notes (Baa3/BBB-/BBB-) in two parts, a source close to the trade said.

There was about $2.5 billion on the books for the deal.

The $250 million of 3.85% notes due 2023 were sold at a spread of Treasuries plus 230 bps. The notes were sold tighter than talk in the range of 240 bps to 245 bps, the source said.

A second tranche was $500 million of 5.25% bonds due 2043 that were priced at 255 bps over Treasuries. The bonds were also priced tighter than guidance in the 260 bps to 265 bps range.

In the secondary, both tranches traded flat, a source said.

The notes due 2023 traded at 230 bps bid, 225 bps offered, while the tranche due 2043 traded at 255 bps bid, 251 bps offered.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were bookrunners.

Proceeds are being used to repay short-term borrowings under a revolving credit facility and commercial paper program, and for general corporate purposes.

The deal is guaranteed by NiSource Inc.

The energy holding company is based in Merrillville, Ind.

Rubbermaid sells in two parts

Newell Rubbermaid sold $500 million of senior notes (Baa3/BBB-/BBB) in two maturities, a market source said.

A $250 million tranche of 2% three-year notes priced at a spread of 175 bps over Treasuries.

The $250 million of 4% 10-year notes sold at 245 bps over Treasuries.

J.P. Morgan Securities LLC and RBC Capital Markets LLC were bookrunners.

Proceeds are being used to redeem the company's outstanding 5.25% convertible quarterly income preferred securities, to reduce borrowings under a commercial paper program, and to reduce amounts under a receivables financing facility.

The Atlanta-based diversified consumer and commercial products company was last in the market with $550 million of 4.7% 10-year notes priced at 175 bps over Treasuries on Aug. 2, 2010.

UnionBanCal offers $900 million

UnionBanCal priced an upsized $900 million senior notes (A2/A+/A) in two maturities, a market source said.

The deal size was increased from $400 million.

A $500 million tranche of 2.125% five-year notes sold at a spread of 150 bps over Treasuries.

The second part was $400 million of 3.5% 10-year notes priced at 200 bps over Treasuries.

Bookrunners are Bank of America Merrill Lynch, Mitsubishi UFJ Securities (USA) Inc. and Morgan Stanley & Co. LLC.

Proceeds are being used to provide a portion of cash funds required to consummate a merger with Pacific Capital Bancorp.

The financial and commercial bank holding company is based in San Francisco.

PPL prices 10-year

PPL Capital Funding sold $400 million of 4.2% 10-year senior notes (Baa3/BBB-/) to yield 265 bps over Treasuries, a source away from the trade said.

BNP Paribas Securities Corp., Goldman Sachs & Co., J.P. Morgan Securities LLC and UBS Securities LLC ran the books.

Proceeds are being loaned to subsidiaries of PPL Corp. to be used for general corporate purposes.

The deal is guaranteed by parent company PPL Corp.

The energy and utility holding company is based in Allentown, Pa.

NY Life offers floaters

New York Life Global Funding priced an upsized $500 million of two-year floating-rate notes at par to yield Libor plus 12 bps, a source who worked on the trade said.

The deal was doubled in size from $250 million, the source said.

The notes (Aaa/AA+/) were priced under Rule 144A and Regulation S.

Barclays Capital Inc., Deutsche Bank Securities Inc. and Jefferies & Co. ran the books.

The unit of the mutual insurance company is based in New York City.

Astoria Financial's five-years

Astoria Financial announced plans for a $250 million sale of five-year senior notes in filings with the Securities and Exchange Commission.

The notes (Baa2/BBB-/BBB-) are to be priced this week, according to an FWP filing with the SEC.

Jefferies & Co. and Sandler O'Neill & Partners LP are bookrunners.

Proceeds are being used to repay $250 million of 5.75% notes due 2012 and for general corporate purposes.

The bank holding company is based in Lake Success, N.Y.

Zions Bank's online sale

Zions Bancorporation announced a $200 million sale of 4% two-year senior notes to be sold via an online auction, according to a press release and 424B3 filing with the SEC.

The auction will open on June 12 at 3 p.m. ET and close on June 13 and 3 p.m. ET.

The minimum bid for the notes is 97.5, or a yield of 4.693% with a maximum price of 102 per note, or yield of 3.46%.

Deutsche Bank Securities Inc. is bookrunner while Zions Direct is the auction agent.

Proceeds are being used for general corporate purposes including the possible redemption of series D preferred stock held by the U.S. Treasury or senior floating-rate notes due on June 21.

The bank holding company is based in Salt Lake City.

NextEra's $25-pars

NextEra Energy Capital Holdings announced a sale of $25-par series H junior subordinated debentures due June 15, 2072, according to a prospectus filed with the Securities and Exchange Commission.

Price talk is around 5.625%, a trader said.

"I thought that was pretty good," he said.

He said the paper was trading at $24.65 to $24.70 in the gray market at midday.

However, as the market fell off towards the close, so did the new issue.

After the bell, a market source quoted the paper at $24.58 bid, $24.68 offered.

"Ouch," he said.

NextEra Energy Inc. is guarantor of the notes.

Interest will be payable the 15th of March, June, September and December. However, interest payments can be deferred for up to 10 consecutive years.

The company is applying to list the notes on the New York Stock Exchange.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. Inc., UBS Securities LLC and Wells Fargo Securities LLC are bookrunners.

Proceeds from the offering will be contributed to NextEra's general funds. The company will then use the funds to repay a portion of its commercial paper obligations and for other general corporate purposes.

NextEra is a Juno Beach, Fla.-based energy provider.

Hydro Quebec preps five-year

Hydro-Quebec (Aa2/A+/) is expected to bring a U.S.-dollar denominated benchmark offering of five-year notes, a bond source said.

The notes are talked at mid-swaps plus low to mid 30 bps and pricing is expected on Tuesday.

Bank of America Merrill Lynch, CIBC World Markets Inc., HSBC Securities and RBC Capital Markets LLC are the lead managers.

Hydro-Quebec was in the U.S. market on June 23, 2011 with a $1 billion offering of 2% global five-year notes (Aa2/A+/) that priced at mid-swaps plus 22 bps, or Treasuries plus 55.7 bps.

Hydro-Quebec is a Quebec government-owned electric power generator and distributor.

EDC plans $1 billion deal

Export Development Canada is planning a $1 billion sale of three-year notes, a source away from the trade said on Monday.

The notes (Aaa/AAA/) are expected to price on Tuesday.

Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and TD Securities (USA) LLC are bookrunners.

The government-backed agency for exporters is based in Ottawa.

Cristal Cody and Stephanie N. Rotondo contributed to this review

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