Nasdaq OMX, Stryker, UBS, Deutsche Bank, M.D.C sell bonds; spreads out as Treasuries rally

By Andrea Heisinger and Cristal Cody

New York, Jan. 12 - UBS AG, Stamford branch, Nasdaq OMX Group, Inc., Stryker Corp., Deutsche Bank AG, New York branch and M.D.C. Holdings, Inc. priced bond deals on a Tuesday when Treasuries rallied.

Nasdaq OMX priced the first deal of the day, a sale held overnight from Monday because it was the company's first bond offering.

It priced an upsized $1 billion of senior notes in five-year and 10-year tranches. The original size was $700 million.

Medical technologies company Stryker sold $1 billion in tranches due 2015 and 2020.

M.D.C. Holdings upsized its sale slightly to $250 million from $200 million and sold 10-year senior unsecured notes.

Switzerland-based bank UBS sold $1.5 billion in five-year notes through its Stamford branch.

Germany's Deutsche Bank did a similar deal, and priced $850 million of two-year floating-rate CDs through its New York branch.

Bank of Tokyo-Mitsubishi UFJ, Ltd. announced a sale of notes in three-and-five-year tranches. They are expected to price on Wednesday.

The market was neutral, as one market source said. Another source who worked on two of the day's deals called it "solid."

There is still a small amount of volume expected for the rest of the week.

Secondary levels on Tuesday in general, and in the financial sector particularly, were wider, according to sources.

"Spreads widened out today 5 to 10 bps," one trader said.

For example, according to a source, the CDX Series 13 North American high-grade index eased 3 bps to a mid bid-asked spread level of 79 bps.

The widening came as Treasuries posted strong gains on Tuesday. The yield on the benchmark 10-year note firmed 11 bps to 3.71%, while the yield on the Treasury's 30-year bond tightened to 4.62% from 4.73% a day earlier.

Overall high-grade dollar volume rose about 4%, while advancing issues jumped ahead of decliners.

By the end of the day, one trader said, "Trace volume was pretty good at almost $9 billion."

Earlier on Tuesday, a source reported that "bonds are rallying," and there was a "bit of a flight to quality bid."

Traders saw interest in the five-year notes sold by PepsiCo, Inc. the day before, but no bids on Nasdaq OMX Group's $1 billion in bonds priced on Tuesday.

Nasdaq sells first bonds

Nasdaq OMX Group priced an upsized $1 billion of senior notes early in the day in two tranches, a source close to the deal said.

The deal went overnight because it is the issuer's debut in the bond market. The size was increased from an original $700 million.

There was no formal price talk for the deal, the informed source said. He added that the books were about five times oversubscribed.

The $400 million of 4% five-year notes priced at a spread of Treasuries plus 162.5 bps.

A $600 million tranche of 5.55% 10-year notes priced at Treasuries plus 187.5 bps.

Bank of America Merrill Lynch, J.P. Morgan Securities and Wells Fargo Securities were bookrunners.

Proceeds are going to repay amounts under a senior secured credit facility and to terminate an associated credit agreement.

The holding company for the Nasdaq Stock Market, Inc. and OMX AB is based in New York City.

Stryker prices $1 billion

Medical technologies company Stryker priced $1 billion of senior unsecured notes in two tranches.

The $500 million of 3% five-year notes priced at Treasuries plus 55 bps.

A $500 million tranche of 4.375% 10-year notes priced at a spread of 75 bps over Treasuries.

There was no formal price guidance for the sale, a source said. Books were about six times oversubscribed, he said.

Bank of America Merrill Lynch, Barclays Capital and Wells Fargo Securities ran the books.

Proceeds will be used by the Kalamazoo, Mich.-based issuer for working capital and other general corporate purposes.

UBS Stamford offers $1.5 billion

UBS AG priced $1.5 billion of 3.875% five-year notes at Treasuries plus 150 bps, a source away from the sale said.

It was a self-led deal, with UBS Investment Bank as bookrunner for the offering from the financial services company based in Basel and Zurich, Switzerland.

M.D.C. upsizes deal

M.D.C. Holdings sold an upsized $250 million of 5.625% 10-year senior unsecured notes to yield 5.95%, or 223.3 bps over Treasuries, an informed source said.

The amount was initially $200 million, the source said. The notes were talked at a yield of 6%, with a margin of plus or minus 5 bps, he said.

Citigroup Global Markets ran the books.

Proceeds are being used for general corporate purposes, including repayment or repurchase of debt and for acquisitions.

The homebuilding and financial services company is based in Denver, Colo.

Solid market beckons issuers

There were not any mega-deals in the day's market, but that didn't mean it couldn't attract quality companies.

Most that priced were highly-rated and got their sales done with minimum fuss.

"I don't think any of them were drawn out," a market source said. "Nasdaq was done before the afternoon, but it went overnight."

Two of the largest deals of the day, those from Nasdaq and Stryker, were each oversubscribed by five times or more, sources who worked on them said.

"The market performed well today," a source who was involved in a couple of the day's sales said, adding "no complaints here."

The credit markets rallied as stocks dropped for the day, the source said.

Bond sales are not over for the week. Although there is not a huge calendar remaining, two syndicate sources said they have one or two small deals left to price in the next couple of days.

Icahn brings split-rated deal

In a split-rated deal, Icahn Enterprises LP and Icahn Enterprises Finance Corp. priced $2 billion of split-rated senior notes (Ba3/BBB-) in two tranches on Tuesday.

An $850 million tranche of 7 ¾% six-year notes priced at 99.411 to yield 7 7/8%. The yield printed at the wide end of the 7¾% to 7 7/8% yield talk. The reoffer price came in line with discount talk of approximately ½ to ¾ point.

Also a $1.15 billion tranche of 8% eight-year notes priced at 99.275 to yield 8 1/8%. Again, the yield printed at the wide end of the 8% to 8 1/8% yield talk. The reoffer price of the eight-year notes came toward the cheap end of the ½ to ¾ point of discount talk.

Jefferies & Co. ran the books.

Proceeds will be used to refinance the master limited partnership's 7 1/8% senior notes due 2013 and its 8 1/8% senior notes due 2012 and to fund general corporate purposes.

Deutsche Bank branch prices floaters

Deutsche Bank AG, New York branch priced $850 million of two-year floating-rate Yankee CDs at par to yield three-month Libor plus 30 bps, a syndicate source away from the deal said.

Deutsche Bank Securities ran the books.

The financial services company is based in Frankfurt, Germany.

Bank of Tokyo plans sale

Bank of Tokyo-Mitsubishi UFJ, Ltd. announced a sale of notes (Aa2/A+) in two tranches on Tuesday, a syndicate source said.

The bank is expected to sell notes due in 2013 and 2015 on Wednesday, the source said.

Bank of America Merrill Lynch, Morgan Stanley & Co. and Mitsubishi UFJ Securities are running the books.

The financial services company is based in Tokyo, Japan.

No bids seen on Nasdaq

In the secondary market, Nasdaq OMX Group's bonds failed to attract bids, a trader said.

According to a trader, the five-year notes, which priced at Treasuries plus 162.5 bps, were "offered at 153 bps and later at 155 bps."

The 10-year notes priced at Treasuries plus 187.5 bps.

"I saw the bonds earlier at 172 bps [but] saw no bids on either."

Stryker unnoticed

Also on Tuesday, Stryker's $1 billion in new bonds didn't see much immediate interest in the secondary.

"I didn't see any levels after the pricing," a trader said.

Financials moves out

High-grade bonds in the financials sector spent Tuesday mostly wider, according to sources.

New York-based Goldman Sachs & Co.'s 7.5% notes due 2019 widened 9 bps to 133 bps over.

Bank of America Corp.'s 7.625% notes due 2019 moved out 9 bps to 160 bps over. The Charlotte, N.C.-based bank's 6.5% notes due 2016 also widened 3 bps to 109 bps over.

Meanwhile, Citigroup Inc.'s 5.5% notes due 2012 widened 9 bps to 223 bps over. New York-based Citigroup's 6.375% notes due 2014 also widened 3 bps to 232 bps over.

Also in the sector, Fairfield, Conn.-based General Electric Capital Corp.'s 5.625% notes due 2018 widened 7 bps to 144 bps over.

PepsiCo widens

Meanwhile, a day after PepsiCo sold $4 billion in three tranches - the five-, 10- and 30-year bonds "widened a bit" on Tuesday, a source said.

But so far, there's also "lots of interest in the five-years."

The five-year notes priced on Monday at Treasuries plus 57 bps.

The Purchase, N.Y.-based beverage and food manufacturer expects to close on its $7.8 billion acquisition of its two largest bottlers in the first quarter. Proceeds from the bond deal will be used to help fund that transaction.

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