Texas Eastern Transmission, NADB price new issues; Morgan Stanley notes trade tighter

By Aleesia Forni

Columbus, Ohio, Oct. 19 - Texas Eastern Transmission and North American Development Bank came to market Friday to end a week that saw corporate bonds "on fire," a trader said.

Texas Eastern Transmission sold an upsized $500 million issue of 10-year bonds, while North American Development Bank took to the primary with a $250 million offering of senior notes.

The market saw its largest inflows into the corporate investment-grade market on record, with $2.4 billion coming into investment-grade funds for the week ended Oct. 17, according to a trader.

Another market source predicted that the week to come may not see as many issuers step up to price new deals.

"Maybe it will slow down a little bit," the source said.

In the secondary market, Thursday's issuance from Morgan Stanley firmed 5 basis points.

RPM International Inc.'s $300 million 3.45% 10-year notes tightened on the day in trading.

Texas Eastern upsized

Texas Eastern Transmission priced an upsized $500 million issue of 2.8% 10-year senior notes during Friday's session at 105 bps over Treasuries, a market source said.

The size of the trade was increased from $400 million.

The Houston-based company sold the notes at 99.802 to yield 2.823%.

J.P. Morgan Securities LLC, RBC Capital Markets LLC, RBS Securities Inc. and SunTrust Robinson Humphrey Inc. were the bookrunners for the Rule 144A and Regulation S deal.

Texas Eastern Transmission is a natural gas pipeline subsidiary of Spectra Energy.

NADB sells senior notes

North American Development Bank was also in the market on Friday, selling a $250 million issue of 2.4% 10-year senior notes, a market source said.

The notes were sold with a spread of Treasuries plus 65 bps.

Pricing was at 99.656 to yield 2.439%. The notes are non-callable.

Bank of America Merrill Lynch and BNP Paribas were the bookrunners on the deal.

The issuer finances environmental projects along the United States and Mexico border and is based in San Antonio.

Morgan Stanley firms

The secondary saw Morgan Stanley's $2 billion issue of 4.875% 10-year global medium-term subordinated notes trade at 305 bps bid.

The notes priced at Treasuries plus 310 bps on Thursday.

The financial services company is based in New York City.

RPM notes tighten

In other trading, RPM International's $300 million of 3.45% 10-year senior notes were quoted 2 bps tighter from late Thursday's levels.

A trader saw the notes at 170 bps bid on Friday. The notes sold at a spread of 165 bps over Treasuries.

The specialty chemical products maker is based in Medina, Ohio.

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