General Electric, CF Industries, AXIS enter primary; Time Warner Cable softer

By Cristal Cody and Aleesia Forni

Virginia Beach, March 6 - The high-grade primary market slowed somewhat on Thursday following two sessions flooded with issuance.

Still, General Electric Co., CF Industries Inc. and AXIS Specialty Finance plc were among the issuers to make their way to the primary during a session that saw $7.5 billion of supply.

That brings the week's total supply to more than $47 billion.

"With the way things are going in the secondary, I don't see this letting up," one market source said.

Even with the frenzy of supply, new issues continue to meet strong demand, sources said on Thursday.

One source noted that General Electric's new issue was nearly four times oversubscribed, as the company hit the primary market for the first time since 2012.

GE sold a $3 billion two-part offering of senior notes in tranches due 2024 and 2044 on Thursday, with both tranches pricing at the tight end of talk.

The company sold $750 million of 3.375% notes due 2024 at Treasuries plus 75 basis points.

GE also priced $2.25 billion of 4.5% 30-year bonds with a spread of Treasuries plus 87.5 bps.

CF Industries was also able to price its two-part new issue at the tight end of price talk.

The company sold $1.5 billion of senior notes in 20- and 30-year tranches.

A $750 million tranche of 5.15% notes due 2034 priced with a spread of 152 bps over Treasuries, while a $750 million tranche of 5.375% 30-year notes priced with a spread of Treasuries plus 172 bps.

Also during the session on Thursday, Nederlandse Waterschapsbank NV sold $1.75 billion of 1.875% senior notes due 2019 at 29 bps over mid-swaps.

In other market action, AXIS Specialty Finance plc sold $500 million of senior notes in five- and 31-year tranches.

The sale included $250 million issue of 2.65% five-year notes priced with a spread of 110 bps over Treasuries.

There was also a $250 million tranche of 5.15% 31-year bonds sold at 150 bps over Treasuries.

Both tranches priced at the tight end of talk.

Omega Healthcare Investors Inc. was in Thursday's market with an upsized $400 million split-rated issue of 4.95% senior notes due April 1, 2024.

The notes sold with a spread of 240 bps over Treasuries, according to a market source.

The issue was upsized from $250 million and sold at the tight end of talk.

Meanwhile, NextEra Energy Capital Holdings Inc. sold a $350 million issue of 2.7% senior notes due 2019 with a spread of Treasuries plus 113 bps, according to a market source.

The notes priced at the tight end of talk, which had tightened about 10 bps from earlier guidance.

Fannie Mae was also in the market on Thursday, selling $3 billion of 0.75% Benchmark Notes due 2017 at Treasuries plus 14.5 bps.

The notes priced in line with talk.

Investment-grade bonds were mixed in afternoon trading, a source said.

The Markit CDX North American Investment Grade series 21 index eased 1 bps to a spread of 63 bps on Thursday.

Time Warner Cable Inc.'s notes headed out softer in the secondary market, a source said.

GE prices tight

General Electric priced a $3 billion two-part offering of senior notes (Aa3/AA+/) in tranches due 2024 and 2044 during Thursday's session, according to a syndicate source.

A $750 million tranche of 3.375% notes due 2024 priced at 99.061 to yield 3.487%, or Treasuries plus 75 bps.

A second tranche was $2.25 billion of 4.5% 30-year bonds priced with a spread of Treasuries plus 87.5 bps. Pricing was at 99.089 to yield 4.556%.

Both tranches sold at the tight end of talk.

Barclays, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC were the joint bookrunners.

Proceeds will be used for general corporate purposes.

General Electric was last in the market pricing $7 billion of notes in three tranches on Oct. 1, 2012.

The technology and financial services company is based in Fairfield, Conn.

Nederlandse Waterschapsbank prices

Nederlandse Waterschapsbank priced a $1.75 billion issue of 1.875% five-year senior notes (Aaa/AA+/) on Thursday with a spread of 29 bps over mid-swaps, according to a market source.

Pricing was at 99.616 to yield 1.956%.

Barclays, BNP Paribas Securities Corp. and Nomura were the joint bookrunners.

The issuer provides loans to municipalities and other public programs and is based in the Hague, Netherlands.

CF Industries two-parter

CF Industries priced $1.5 billion of senior notes (Baa2/BBB-/BBB) in tranches due 2034 and 2044 on Thursday, according to a market source and an FWP filed with the Securities and Exchange Commission.

The company priced $750 million of 5.15% notes due 2034 with a spread of 152 bps over Treasuries, or 99.48, to yield 5.192%.

There was also a $750 million issue of 5.375% 40-year notes priced at 99.748 to yield 5.392%. The notes sold with a spread of Treasuries plus 172 bps.

Both tranches sold at the tight end of talk.

Bookrunners were Goldman Sachs & Co. and Morgan Stanley & Co. LLC.

The company plans to use the proceeds from the offering to fund capital expenditure programs and stock repurchases and for other general corporate purposes, including working capital.

The notes are guaranteed by CF Industries Holdings Inc.

The maker and distributor of nitrogen and phosphate products is based in Deerfield, Ill.

AXIS new issue

AXIS Specialty Finance priced $500 million of senior notes (Baa1/A-/) in two tranches during Thursday's session, according to a market source.

A $250 million issue of 2.65% five-year notes priced with a spread of 110 bps over Treasuries. The notes priced at 99.896 to yield 2.672%.

A second tranche was $250 million of 5.15% 31-year bonds priced at 150 bps over Treasuries, or 99.471, to yield 5.184%.

The notes will be guaranteed by AXIS Capital Holdings Ltd.

Both tranches sold at the tight end of talk.

Barclays, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. were the joint bookrunners.

Proceeds will be used to repay the company's 5.75% senior notes due 2014.

AXIS is a Bermuda-based holding company for specialty reinsurance.

Omega prices crossovers

Omega Healthcare Investors (Ba1/BBB-/) priced an upsized $400 million of 4.95% senior notes due April 1, 2024 on Thursday with a spread of 240 bps over Treasuries, according to a market source and a company press release.

The issue was upsized from $250 million and sold at the tight end of talk.

The notes priced at 98.58 to yield 5.132%.

BofA Merrill Lynch and J.P. Morgan Securities LLC were the joint bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used to repay a portion of the company's outstanding term loans and revolving credit facility borrowings.

The issuer is a Hunt Valley, Md.-based real estate investment trust investing in and providing financing to the long-term care industry.

NextEra brings $350 million

NextEra Energy priced $350 million of 2.7% senior debentures (Baa1/BBB+/A-) due Sept. 15, 2019 at par with a spread of Treasuries plus 113 bps, according to a market source and an FWP filed with the SEC.

The notes priced at the tight end of talk, which had tightened about 10 bps from earlier guidance.

Barclays, Citigroup Global Markets, Credit Suisse Securities and Mitsubishi UFJ Securities (USA) Inc. were the joint bookrunners.

Based in Juno Beach, Fla., NextEra is the parent company of Florida Power & Light Co.

Fannie Mae Benchmark Notes

Fannie Mae priced $3 billion of 0.75% Benchmark Notes due April 20, 2017 on Thursday with a spread of Treasuries plus 14.5 bps, according to a company news release.

The notes priced in line with talk.

Pricing was at 99.651 to yield 0.864%.

The issue will settle on March 10.

Barclays, Citigroup Global Markets and Deutsche Bank Securities were the joint lead managers.

Fannie Mae is a Washington, D.C.-based government-backed mortgage lender.

Time Warner Cable eases

Time Warner Cable's 4.125% notes due 2021 (Baa2/BBB/BBB) eased 1 bp to close the session at 71 bps bid, according to an informed source.

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

The seven-year notes traded as wide as the 215 bps area in February but came in after Time Warner Cable announced that it will be acquired by Comcast Corp. in a $45.2 billion all-stock transaction.

New York City-based Time Warner Cable is a broadband communications company.

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