Sweden's SEB, Macquarie Bank price; EOG Resources firms; bond spreads tighten

By Cristal Cody and Aleesia Forni

Virginia Beach, March 18 - Activity in the high-grade market was measured on Tuesday, as the market focused on the beginning of the first two-day Federal Open Market Committee meeting chaired by Janet Yellen.

Utilities including EOG Resources Inc., Dominion Resources Inc. and Oklahoma Gas & Electric Co. were joined in the primary market by foreign banks Macquarie Bank Ltd. and Skandinaviska Enskilda Banken AB.

Sweden's Skandinaviska Enskilda Banken brought $1.5 billion of 2.375% five-year senior notes to market with a spread of Treasuries plus 85 basis points.

In another new issue from the region, the Kingdom of Sweden priced a $2 billion issue of 0.75% notes due 2017 with a spread of mid-swaps minus 3 bps, according to a release.

The session also saw Macquarie Bank sell $1.25 billion of three-year senior notes in fixed- and floating-rate tranches, an informed source said.

A $500 million tranche of floaters priced at par to yield Libor plus 79 bps, while a $750 million tranche of 1.65% notes priced at Treasuries plus 90 bps.

The notes sold in line with talk.

EOG Resources brought to market a $500 million issue of 2.45% six-year senior notes at Treasuries plus 93 bps, which sold at the tight end of talk.

Dominion Resources issued $400 million of 1.25% three-year senior notes at Treasuries plus 53 bps, according to a market source.

The notes sold at the tight end of talk, which was in the Treasuries plus 55 bps area, tightened from Treasuries plus the low 60 bps area.

Oklahoma Gas & Electric sold a $250 million issue of 4.55% 30-year notes at Treasuries plus 95 bps.

Also on Tuesday, Entergy Mississippi Inc. sold $100 million of 3.75% 10-year first mortgage bonds with a spread of Treasuries plus 108 bps.

Pricing was tight of guidance.

With Tuesday's $6 billion of total issuance, the high-grade market has seen $13.75 billion of supply so far this week.

The pace of issuance has slowed in recent sessions, following back-to-back weeks that saw more than $30 billion of supply for the high-grade market.

As the market continues to digest the onslaught of issuance the market has seen this month, one sources said he expects Wednesday's level of activity to be similar to Tuesday's session.

Investment-grade bond spreads improved a second day as bonds continue to unwind the weakness seen in the previous week, according to market sources.

"Spreads a bit tighter," a trader said.

The Markit CDX North American Investment Grade series 21 index tightened 2 bps to a spread of 63 bps on Tuesday.

EOG Resources' 2.45% notes due 2020 firmed 3 bps in secondary trading after the issue priced, a trader said.

Dominion Resources 1.25% notes due 2017 and Energy Mississippi's bonds due 2024 priced late afternoon and were not initially seen in late-day trading, according to market sources.

In other secondary trading, Time Warner Cable Inc.'s 4.125% notes due 2021 headed out about 3 bps better, a market source said.

Sweden new issue

The Kingdom of Sweden sold $2 billion of 0.75% notes due April 12, 2017 with a spread of mid-swaps minus 3 bps, according to a release.

The notes priced at 99.64 to yield 0.87% or Treasuries plus 10.35 bps.

"It is a great start of the year for the Kingdom," said Maria Norstrom, head of funding. "Both volume and price illustrated strong investor demand."

Citigroup Global Markets Inc., Credit Suisse and Nordea were the bookrunners.

The final book for the deal was $3.25 billion.

Central banks bought 75% of the deal. Banks bought 12%, while the balance went to asset managers and others.

Investors in Asia bought around 48% of the bond, while 19% was sold to Europe and 17% was sold to the Middle East and Africa. The balance was sold to North American investors.

SEB prices five-years

Skandinaviska Enskilda Banken sold a $1.5 billion issue of 2.375% senior notes (A1/A+/A+) due March 25, 2019 on Tuesday with a spread of Treasuries plus 85 bps, according to a market source.

Barclays, BofA Merrill Lynch, Citigroup Global Markets, Goldman Sachs & Co. and Skandinaviska Enskilda Banken were the joint bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used for general corporate purposes.

The financial services company is based in Stockholm.

Macquarie Bank two-parter

Macquarie Bank priced $1.25 billion of senior notes (A2/A/A) in fixed- and floating-rate tranches due March 24, 2017 on Tuesday, according to an informed source.

There was $500 million of floating-rate notes priced at par to yield Libor plus 79 bps.

A second tranche was $750 million of 1.65% notes priced at 99.991 to yield 1.653%, or Treasuries plus 90 bps.

Pricing was in line with talk.

The joint bookrunners for the Rule 144A and Regulation S sale were Macquarie Capital, BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC.

The global investment bank and financial services company is based in Sydney, Australia.

EOG sells $500 million

EOG Resources priced $500 million of 2.45% senior notes due 2020 with a spread of Treasuries plus 93 bps, according to a syndicate source and an FWP filed with the Securities and Exchange Commission.

The notes (A3/A-/) priced at 99.844 to yield 2.478%.

Pricing was at the tight end of talk.

EOG Resources' 2.45% notes due 2020 tightened to 90 bps bid in the secondary market, a trader said.

Barclays, JPMorgan and RBC Capital Markets LLC were the active bookrunners. Passive bookrunners were DNB Markets Inc., Goldman Sachs, SG Americas Securities LLC and UBS Securities LLC.

Proceeds will be used for general corporate purposes, including the repayment of commercial paper and capital expenditures.

EOG is a Houston-based crude oil and natural gas company.

Dominion prices tight

Dominion Resources priced $400 million of 1.25% three-year series A senior notes (Baa2/BBB+/BBB+) on Tuesday with a spread of Treasuries plus 53 bps, according to a market source.

Pricing was at 99.898 to yield 1.285%.

The notes priced at the tight end of talk, which was in the Treasuries plus 55 bps area, tightened from Treasuries plus the low 60 bps area.

RBC Capital Markets and RBS Securities Inc. were the joint bookrunners.

Proceeds will be used for general corporate purposes and to repay debt, including commercial paper.

The energy producer and transporter is based in Richmond, Va.

OKG&E issues 30-years

Oklahoma Gas & Electric priced $250 million 4.55% 30-year senior notes (A1/A-/A+) on Tuesday with a spread of Treasuries plus 95 bps, according to an FWP filing with the SEC.

Pricing was at 99.677 to yield 4.57%.

Bookrunners were JPMorgan, Mizuho Securities USA Inc. and Mitsubishi UFJ Securities (USA) Inc.

Proceeds will be added to the company's general funds and used to repay debt, to fund capital expenditures, for working capital and for general corporate purposes.

The electric utility is based in Oklahoma City.

Entergy mortgage bonds

Entergy Mississippi priced a $100 million issue of 3.75% first mortgage bonds (A3/A-/) due 2024 with a spread of Treasuries plus 108 bps, according to an informed source and an FWP filed with the SEC.

Pricing was at 99.97 to yield 3.754%.

Price guidance was Treasuries plus 115 bps to 120 bps.

Goldman Sachs was the bookrunner.

Proceeds will be used to redeem the company's $95 million of 4.95% first mortgage bonds due June 1, 2018 and for general corporate purposes.

The electric utility is based in New Orleans.

Time Warner Cable better

Time Warner Cable's 4.125% notes due 2021 (Baa2/BBB/BBB) firmed to 72 bps bid on Tuesday, 3 bps tighter than where the notes traded on Friday, according to a market source.

Time Warner Cable sold $700 million of the notes at Treasuries plus 155 bps in 2010.

The notes tightened more than 100 bps in February on news that the New York City-based broadband communications company will be acquired by Comcast Corp. for $45.2 billion in stock.

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