Ford Motor, ANZ price; VeriSign sells upsized crossovers; Bank, financial paper flat to weaker

By Aleesia Forni and Cristal Cody

Virginia Beach, March 24 – Ford Motor Credit Co. LLC, ANZ New Zealand Ltd. and VeriSign Inc. issued bonds on Tuesday amidst a stronger underlying tone to the market.

The day saw around $3.5 billion of new issuance, pushing the week’s total supply to $15.8 billion.

Deals priced during the session were met with mostly positive reception, even with the more than $145 billion of supply the investment-grade bond market has absorbed so far this month.

Ford Motor Credit sold both fixed-rate tranches of its new offering around 5 basis points tight of talk.

Elsewhere on Tuesday, ANZ attracted an order book that was around 2.2 times oversubscribed for its $750 million offering of three-year notes, and VeriSign sold its upsized $500 million offering of crossover bonds at the tight end of guidance.

XLIT Ltd. was also in Tuesday’s market with an offering of guaranteed subordinated notes, though details of the sale were unavailable at press time.

Investment-grade bonds traded mostly flat to softer over the session, according to market sources.

Bank of America Corp.’s 4% notes due 2025 eased 1 bp in the secondary market.

Goldman Sachs Group Inc.’s 3.5% senior notes due 2025 softened 1 bp.

JPMorgan Chase & Co.’s 3.125% notes due 2025 traded 1 bp to 2 bps weaker over the day.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 63 bps.

Ford sells $1.75 billion

Ford Motor Credit sold $1.75 billion of senior notes (Baa3/BBB-/BBB-) in three tranches due 2017 and 2020 on Tuesday, according to a market source and an FWP filed with the Securities and Exchange Commission.

The sale included $500 million of three-year floating-rate notes priced at par to yield Libor plus 63 bps.

There was also $650 million of 1.461% three-year notes priced at par with a spread of Treasuries plus 90 bps.

Pricing was on top of guidance, which firmed from initial talk in the mid-90 bps area over Treasuries.

A $600 million tranche of 2.459% five-year notes sold at par to yield 110 bps over Treasuries.

The notes sold on top of guidance. Initial talk was set in the Treasuries plus 115 bps area.

Banco Bradesco BBI SA, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and SMBC Nikko Securities America Inc. were the bookrunners.

Proceeds will be added to the general funds of Ford Credit and will be available for the purchase of receivables, for loans and for use in connection with the retirement of debt.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based automaker Ford Motor Co.

ANZ new issue

ANZ New Zealand priced $750 million of 1.75% three-year senior notes (Aa3/AA-/AA-) at Treasuries plus 85 bps, an informed source said.

Pricing was on top of guidance. Initial talk was set in the area of 95 bps over Treasuries.

The notes sold at 99.988 to yield 1.754%.

The sale was done via Rule 144A and Regulation S.

The bookrunners were Citigroup Global Markets, J.P. Morgan Securities LLC, RBC Capital Markets LLC and ANZ.

ANZ is a financial services company based in Melbourne, Australia.

VeriSign upsizes

VeriSign sold an upsized $500 million split-rated issue of 5¼% 10-year senior notes (Ba3/BB+) on Tuesday at par, according to market sources.

The deal was upsized from $400 million.

Pricing was at the tight end of guidance set at 5¼% to 5½%, tightened from initial talk in the 5½% area.

The notes come with investment-grade covenants but were sold off the high-yield syndicate desk. During Tuesday’s session Moody’s Investors Service downgraded the bonds to Ba1 from Baa3, cutting the ratings to junk on both sides from split earlier.

They feature a par call three months prior to maturity, but are otherwise non-callable.

JPMorgan, BofA Merrill Lynch and U.S. Bancorp Investments Inc. were the joint bookrunners.

Proceeds will be used for general corporate purposes, including the repurchase of shares under its share repurchase program.

VeriSign is an internet infrastructure services provider based in Reston, Va.

Bank of America soft

Bank of America’s 4% notes due 2025 headed out 1 bp softer at 202 bps bid, a market source said.

The company sold $2.5 billion of the notes (Baa2/A-/A) on Jan. 16 at Treasuries plus 225 bps.

The financial services company is based in Charlotte, N.C.

Goldman eases

Goldman Sachs’ 3.5% notes due 2025 eased 1 bp to 139 bps bid, according to a market source.

Goldman sold $1.7 billion of the notes (Baa1/A-/A) on Jan. 20 at 170 bps over Treasuries.

The financial services company is based in New York City.

JPMorgan eases

JPMorgan Chase’s 3.125% notes due 2025 were quoted 1 bp to 2 bps softer at 125 bps bid in late afternoon trading, according to a market source.

JPMorgan sold $2.5 billion of the notes (A3/A/A+) on Jan. 16 at a spread of Treasuries plus 145 bps.

The financial services company is based in New York City.

Bank/broker CDS costs higher

Investment-grade bank and brokerage CDS prices were mostly higher on Tuesday, according to a market source.

Bank of America’s CDS costs were up 1 bp to 65 bps bid, 68 bps offered. Citigroup Inc.’s CDS costs were 1 bp higher at 75 bps bid, 78 bps offered. JPMorgan Chase’s CDS costs rose 1 bp to 64 bps bid, 67 bps offered. Wells Fargo & Co.’s CDS costs were flat at 41 bps bid, 44 bps offered.

Merrill Lynch’s CDS costs were 1 bp higher at 69 bps bid, 73 bps offered. Morgan Stanley’s CDS costs rose 1 bp to 75 bps bid, 78 bps offered. Goldman Sachs Group’s CDS costs were unchanged at 82 bps bid, 85 bps offered.

Paul Deckelman and Paul A. Harris contributed to this review.

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