Economic data leaves primary empty; coming week has momentum; Cooper US, American Tower firm

By Andrea Heisinger and Cristal Cody

New York, Dec. 3 - High unemployment figures were released early on Friday, and the investment-grade bond market was quiet for the day, sources said. No new deals priced.

The terms of a small sale on the previous day from Central Hudson Gas & Electric Corp. were released. The utility sold $82.15 million of notes in three tranches.

Another small deal was priced on Thursday, and its terms were released Friday. Bank of New York Mellon Corp. sold $100 million of three-year floating-rate notes in addition to the $600 million of five-year notes priced the same day.

The bond market could stay active for the coming week, a syndicate source said.

"If nothing changes, I think we could see some things," he said. "It was good this week - just the economic [numbers] today."

Unemployment hit 9.8% in November, and a source said it was "just another headline" that he hoped would be absorbed by Monday.

The past week saw many smaller sales from companies, and that trend could continue.

"I'm hearing away there could be a couple of blockbusters, but nothing specific," the source said.

Corporate bonds were mostly flat on the day in the secondary market, according to sources.

In secondary trading, new debt from Cooper US, Inc. and American Tower Corp. firmed, and bank and financial bonds were flat to about 3 basis points weaker on the day, according to sources.

Overall investment-grade Trace volume dropped nearly 30% on Friday to under $10 billion, a market source said.

"Not enough volume today," one source said. "It's typical light for a Friday. With the unemployment numbers and Treasuries rallying, it may have put some people on the sidelines until next week."

The Markit CDX Series 14 North American investment-grade index was unchanged Friday at a spread of 92 basis points, according to Markit Group Ltd.

Long-dated Treasuries fell, sending yields up, on the poor job data. The yield on the 10-year benchmark note ended the day flat at 3%, while the 30-year bond yield rose to 4.31% from 4.26%.

Central Hudson gives terms

Central Hudson Gas & Electric gave the terms for its $82.15 million sale of senior medium-term notes (A3/A/A) in three parts.

The $8 million of 2.756% notes due 2016 priced at a spread of Treasuries plus 167.6 bps, according to an FWP filing with the Securities and Exchange Commission.

Another $44.15 million tranche of 4.15% notes due 2021 were sold at a spread of 300 bps over Treasuries.

The final tranche was $30 million of 5.716% bonds due 2041 that priced at a spread of 426.6 bps over Treasuries.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC were the agents.

Proceeds are being used to redeem, retire, repay or purchase all or a portion of the company's $82.15 million of series 1999C and series 1999D pollution control refunding revenue bonds, which were issued through the New York State Energy Research & Development Authority.

The utility is based in Poughkeepsie, N.Y.

Bank of NY's floaters

Bank of New York Mellon priced $100 million of three-year floating-rate medium-term notes, series G, according to a 424B2 filing with the SEC.

The notes priced at par to yield Libor plus 27 bps.

The agent for the sale was Deutsche Bank Securities Inc.

The financial services company is based in New York.

Bank paper flat

The financial sector ended the week mostly flat after widening much of the week, according to sources.

"Banks are unchanged to 3 basis points wider tops. Not much is moving," a trader said.

Bank of New York Mellon's new 2.5% notes (Aa2/AA-) due 2016 sold on Thursday at a spread of Treasuries plus 83 bps had firmed the same day to 80 bps in the secondary market, but they were unchanged in trading on Friday, a source said.

The financial services company is based in New York.

Elsewhere in the sector, Bank of America Corp.'s 7.625% notes due 2019 (A2/A/) closed Friday flat at 275 bps over Treasuries, a source said.

The Charlotte, N.C.-based bank's short-dated debt firmed in trading. The 6.5% notes due 2016 (A2/A/) were 5 bps tighter at 335 bps on Friday.

Cooper US tighter

The senior notes (A3/A) Cooper US sold in two tranches on Thursday traded stronger early Friday, a source said.

The company sold $250 million of 2.375% notes due 2016 at a spread of Treasuries plus 75 bps.

"Early this morning on the five-year I saw 73, 68," a trader said.

The second tranche of $250 million of 3.875% notes due 2020 priced at a spread of 95 bps over Treasuries. The notes firmed to 90 bps bid, 86 bps offered on Friday, the trader said.

The maker of electric products is based in Houston.

American Tower stronger

American Tower's split-rated notes narrowed in the high-grade secondary market, a source said.

The company sold $1 billion of 4.5% senior notes (Baa3/BB+/BBB-) due 2018 at a spread of Treasuries plus 215 bps on Thursday.

"They were seen early this morning at 209, 206," a trader said.

The owner and manager for leasing communication and broadcast tower sites is based in Boston.

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