Utility issuers tap primary; Harley-Davidson, National Australia Bank price; GE mixed

By Cristal Cody

Tupelo, Miss., Nov. 26 – Electric utility issuers kicked the post-Thanksgiving holiday week off with two high-grade bond deals on Monday, while the session overall saw nearly $4 billion of supply.

Virginia Electric and Power Co. sold $600 million of 30-year senior notes, pricing the issue more than 10 basis points tighter than initial talk in the Treasuries plus 145 bps area, a source said.

Tucson Electric Power Co. priced 30-year senior notes in a $300 million offering.

Harley-Davidson Financial Services, Inc. brought an upsized $450 million of three-year senior medium-term floating-rate notes to the market.

National Australia Bank Ltd., New York Branch sold $1.35 billion of senior notes in two tranches, while parent National Australia Bank Ltd. placed $1.15 billion of five-year mortgage covered bonds.

New issues have traded mostly weaker in the secondary market.

Specific names in the energy sector have softened in November, including General Electric Co., whose bonds widened after an unexpected sell-off. Its 5% series D fixed-to-floating-rate noncumulative perpetual preferred stock is “trading in the mid- to low-70 cents on the dollar,” according to a Piper Jaffray & Co. research note Monday.

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