Fannie Mae, IADB price to close packed week; Ford eases; Verizon firms; Time Warner widens

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 27 - Two new deals were priced in the high-grade space on Friday, closing out a packed week for the primary market.

Roughly $31 billion of new high-grade paper was issued during the week, according to Prospect News data.

Friday's market saw Fannie Mae price a new issue of $4 billion of 1.625% five-year Benchmark Notes at Treasuries plus 30 basis points, according to an informed source.

There was also a new deal from Inter-American Development Bank, which priced $1 billion of 3% notes due Oct. 4, 2023 with a spread of mid-swaps plus 23 bps, an informed source said.

Predictions for next week are varied, due in part to the possibility of a potential government shutdown.

Some sources are expecting up to $20 billion of new issuance.

High-grade bonds traded moderately weaker on Friday, market sources said.

"It's 2 or 3 [bps] wider in general," a source said. "Stocks are down, Treasuries are better. It's Friday."

The Markit CDX North American Investment Grade series 21 index eased 1 bp to a spread of 81 bps.

Ford Motor Credit Co. LLC's 2.875% notes due 2018 widened about 2 bps from where the notes priced on Thursday, a source said.

BHP Billiton Finance (USA) Ltd.'s bonds (A1//A+) traded flat in Friday's session, but remain 10 bps better than where the paper priced on Wednesday, a source said.

In the technology, media and telecom sector, Verizon Communication Inc.'s bonds ended the session about 1 bp tighter, according to a market source.

Time Warner Cable Inc.'s bonds traded "5 bps wider on the day," a source said.

Fannie Mae's Benchmark Notes

Fannie Mae priced $4 billion of 1.625% five-year Benchmark Notes with a spread of Treasuries plus 30 bps on Friday, according to an informed source.

The bonds priced at 99.617 to yield 1.703%.

Barclays, Deutsche Bank Securities Inc. and Nomura Securities International Inc. were the bookrunners.

The government-backed mortgage buyer is based in Washington, D.C.

IADB sells $1 billion

In other primary news, Inter-American Development Bank priced $1 billion of 3% notes due Oct. 4, 2023 on Friday with a spread of mid-swaps plus 23 bps, an informed source said.

Citigroup Global Markets Inc., HSBC Securities (USA) LLC and Morgan Stanley & Co. LLC were the joint bookrunners.

The provider of development financing for Latin America and the Caribbean is based in Washington, D.C.

Ford weaker

Ford Motor Credit's 2.875% notes (Baa3/BBB-/) widened to 147 bps bid, 144 bps offered late Friday afternoon, a source said.

The company sold $1 billion of the five-year notes with a spread of Treasuries plus 145 bps on Thursday.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based automaker Ford Motor Co.

BHP unchanged

In other secondary trading, BHP Billiton Finance's 3.85% senior notes due 2023 were quoted late Friday at 115 bps bid, 112 bps offered, flat from Thursday's level, according to a market source.

BHP sold $1.5 billion of the notes at Treasuries plus 125 bps on Wednesday.

The company's tranche of 5% bonds due 2043 were quoted better since issuance at 120 bps bid, 117 bps offered. BHP sold $2.5 billion of the 30-year bonds at Treasuries plus 130 bps.

The company is a subsidiary of Melbourne, Australia-based natural resources developer BHP Billiton Ltd.

Verizon trades

Verizon's 5.15% notes due 2023 (Baa1/BBB+/A-) traded at 159 bps bid, 157 bps offered on Friday, a market source said.

The notes were quoted at 160 bps bid on Thursday.

Verizon sold $11 billion of the 10-year notes with a spread of Treasuries plus 225 bps in the $49 billion eight-tranche deal priced on Sept. 11.

The company's 6.55% bonds due 2043 firmed to 186 bps bid, 184 bps offered Friday afternoon. Verizon sold $15 billion of the 30-year bonds with a spread of Treasuries plus 265 bps.

The telecommunications company is based in New York City.

Time Warner Cable widens

Time Warner Cable's bonds (Baa2/BBB/BBB) traded about 5 bps weaker on Friday, a source said.

Time Warner Cable's 4.5% senior debentures due 2042 widened to 285 bps bid, 275 bps offered, or about 73.5 bid, 74.5 offered.

The company sold $1.25 billion of the debentures in August 2012 at a spread of Treasuries plus 183 bps.

The New York City-based broadband communications company's bonds have traded mostly wider over the week, sources report.

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