Whirlpool, National Rural tap market; pipeline expected to rev up; recent issues trade better

By Andrea Heisinger and Aleesia Forni

New York, Feb. 22 - A deal from appliance maker Whirlpool Corp. on Friday closed out a week that saw more issuance than expected.

Whirlpool priced $500 million of 10-year notes and 30-year bonds. There was about $5 billion of demand for the sale, which had a do-not-grow provision on it.

There was also a $150 million offering of three-year floating-rate notes from National Rural Utilities Cooperative Finance Corp.

There was $10 billion to $15 billion of supply expected for the week, but more than $16 billion came to the market, according to Prospect News data. That figure doesn't include sovereigns or emerging market issues.

A syndicate source's desk saw a little more than $14 billion of new issues for the week.

The coming week is seen as "much more active than this week," the source said, with $15 billion to $20 billion of supply expected. Those sales are expected to come from a mix of sectors, including more financials following in the footsteps of the $4.5 billion Morgan Stanley trade and the $2.5 billion priced by JPMorgan Chase & Co. in the past week.

"There's plenty of people wanting floating-rate notes," the syndicate source said. Both the Morgan Stanley and JPMorgan sales included three-year floaters.

A second syndicate source from a large desk also saw upwards of $15 billion in the pipeline for the coming week, including six to seven trades from the industrial space.

The tone on Friday was "a little better" as the stock market rebounded slightly, a market source said.

"We'll be up and running on Monday," the source said.

The secondary market saw JPMorgan's notes due 2016 trade better during the session, while Carpenter Technology Corp.'s 10-year notes were quoted unchanged from Thursday's levels.

Meanwhile, existing bonds from JPMorgan were wider on the day.

Whirlpool prices tight

Whirlpool sold $500 million of senior notes (Baa3/BBB-/BBB) in two parts, an informed source said.

The sale included $250 million of 3.7% 10-year notes sold at a spread of Treasuries plus 175 bps. Official talk was in the 180 bps area, plus or minus 5 bps.

A $250 million tranche of 5.15% 30-year bonds priced at Treasuries plus 200 bps. The 30-year bonds had guidance in the 205 bps area, plus or minus 5 bps.

The active bookrunners were BNP Paribas Securities Corp. and Citigroup Global Markets Inc.

Proceeds are being used for general corporate purposes including repayment of $500 million of 5.5% medium-term notes maturing in March.

The Benton Harbor, Mich.-based appliance maker was last in the U.S. bond market with a $300 million sale of 4.7% 10-year notes priced at 300 bps over Treasuries on May 29, 2012.

National Rural's floaters

National Rural Utilities Cooperative Finance sold $150 million of three-year floating-rate senior notes (A2/A/) at par to yield Libor plus 25 bps, according to an FWP filing with the Securities and Exchange Commission.

The agent for the sale was KeyBanc Capital Markets Inc.

The market lender for electric cooperatives is based in Herndon, Va.

Kinder Morgan's terms

Kinder Morgan Energy Partners LP gave the terms of its $1 billion offering of senior notes (Baa2/BBB/BBB) sold in two tranches.

The $600 million of 3.5% notes due 2023 were priced at a spread of Treasuries plus 155 bps, according to an FWP filing with the SEC.

A $400 million tranche of 5% 30-year bonds sold at a spread of Treasuries plus 185 bps.

The active bookrunners were J.P. Morgan Securities LLC, RBS Securities Inc. and SunTrust Robinson Humphrey Inc.

Proceeds are being used to repay commercial paper debt and for general corporate purposes potentially including acquisitions.

The Houston-based pipeline operator was last in the U.S. bond market with a $1.25 billion sale of notes in two tranches on Aug. 8, 2012. That offering included a 3.45% note due 2023 priced at 185 bps over Treasuries and a 5% 30-year bond sold at Treasuries plus 230 bps.

New JPMorgan issue firms

A trader quoted JPMorgan's $750 million of 1.125% three-year notes slightly tighter at 75 bps bid, 70 bps offered early in the session.

The issue was quoted at 76 bps bid late Thursday following its sale with a spread of 77 bps over Treasuries.

JPMorgan existing notes wider

The secondary also saw the $3 billion 6.3% issue due 2019 from JPMorgan widen 3 bps to 168 bps bid.

JPMorgan priced the 10-year bonds on April 16, 2009 at 305 bps over Treasuries.

Carpenter notes flat

In other trading, Carpenter Technology's $300 million of 4.45% 10-year senior notes were unchanged from levels seen near Thursday's close at 232 bps bid, 226 bps offered.

The notes originally tightened 18 bps and were sold at a spread of Treasuries plus 250 bps.

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