Huntington, WellPoint price; high-grade bonds a 'touch' tighter, Halliburton long bonds firm

By Cristal Cody and Aleesia Forni

Tupelo, Miss., July 30 - WellPoint Inc. and Huntington Bancshares Inc. were among the companies to price new issues on Tuesday in the investment-grade bond market space, sources said.

WellPoint came to market with $1.25 billion of senior unsecured notes in two parts.

The book for WellPoint's deal was "around $5 billion," according to a syndicate source, and both tranches sold at the tight end of talk.

Meanwhile, Huntington hit the primary selling $400 million of 2.6% senior notes due 2018 at 125 basis points over Treasuries.

The emerging markets space saw a high-grade new issue as China's Baidu Inc. sold $1 billion of 3.25% senior unsecured notes due Aug. 6, 2018.

The notes priced at Treasuries plus 190 bps, at the tight end of talk.

Players are expecting the session to quiet down on Wednesday following two solid days of new issuance.

"I'm not expecting much to happen tomorrow," one syndicate source said following the close.

In secondary market action, bonds traded "just a touch" tighter over the day, a source said.

"New issues are just kind of sitting around not doing much," the sources said, "mostly because they were squeezed out on price."

WellPoint prices

The high-grade primary market saw WellPoint price $1.25 billion of senior unsecured notes in two parts, according to a syndicate source and an FWP filing with the Securities and Exchange Commission.

Both tranches priced at the tight end of talk.

The company sold $650 million of 2.3% five-year bonds at 99.579 to yield Treasuries plus 100 bps or 2.391%.

Price talk was set at Treasuries plus 100 bps to 105 bps.

Additionally, the company priced $600 million of 5.1% 30-year bonds at 99.865 to yield 5.109%.

WellPoint talked the notes at Treasuries plus 145 bps to 150 bps.

Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. acted as the joint bookrunners. Passive bookrunners were J.P. Morgan Securities LLC and UBS Securities LLC.

The company plans to use proceeds from the offering to fund its cash tender offer for up to $600 million of its outstanding notes, including the payment of accrued interest and any applicable early tender premiums.

The remaining net proceeds will be used for general corporate purposes, including repurchases of other outstanding debt.

Wellpoint was last in the market with $3.25 billion of bonds in four maturities on Sept. 5, 2012.

The health benefits company is based in Indianapolis.

Huntington's new issue

Huntington Bancshares priced a $400 million issue of 2.6% senior notes due Aug. 2, 2018 at Treasuries plus 125 bps, according to an FWP filing with the Securities and Exchange Commission.

The notes sold at 99.8 to yield 2.643%.

Goldman Sachs & Co. and BofA Merrill Lynch were the bookrunners.

Proceeds will be used for general corporate purposes.

Huntington Bancshares is a financial holding company based in Columbus, Ohio.

Baidu sells $1 billion

In other primary news, Baidu hit Tuesday's market with $1 billion of 3.25% senior unsecured notes due Aug. 6, 2018, according to an FWP filing with the Securities and Exchange Commission and an informed source.

The notes priced at 99.835 to yield 3.286% or Treasuries plus 190 bps.

Talk was set in the area of 195 bps over Treasuries.

J.P. Morgan Securities LLC and Goldman Sachs (Asia) LLC were the bookrunners.

The proceeds from the deal will be used for general corporate purposes, including merger and acquisition activities.

Baidu is a Chinese-language internet search provider based in Beijing.

Halliburton's tranches mixed

The secondary market saw Halliburton Co.'s new 3.5% senior notes due 2023 trade flat while the long bonds moved tighter, a trader said.

Halliburton sold $1.1 billion of the notes at a spread of Treasuries plus 93 bps.

The $900 million tranche of 4.75% bonds due 2043, which priced at 110 bps over Treasuries, tightened to 105 bps bid.

The notes were part of a $3 billion four-tranche offering of senior notes (A2/A/A-) that the Houston-based diversified energy services company priced on Monday.

IBM notes firm

International Business Machines Corp.'s 3.375% notes due 2023 (Aa3/AA-/A+) ended Tuesday's session 3 bps tighter on the bid side at 80 bps bid, 78 bps offered, a source said.

The Armonk, N.Y.-based information technology and computer company sold $1.5 billion of the notes at a spread of Treasuries plus 83 bps on Monday.

Kinder Morgan flat

In other trading, Kinder Morgan Energy Partners, LP's 4.15% senior notes due 2024 sold the previous day ended unchanged, according to a trader.

The Houston-based pipeline sold $650 million of the notes (Baa2/BBB/BBB) at Treasuries plus 160 bps.

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