Desks see uptick in deals for coming week, more seen tapping market; banks, telecoms firm

By Andrea Heisinger and Cristal Cody

New York, March 16 - The week ended Friday about on par with issuance projections with no new deals on the day, but forecasts for a brisk week ahead.

Australia's Goodman Group gave terms of a $500 million deal of 10-year notes it sold privately on Thursday.

Despite no new deals, desks were preparing for Monday, which is expected to be busy.

"We have a couple of situations for Monday," said one syndicate source. "Get ready for a busy front end of the week."

The issuance estimate is between $15 billion and $20 billion, which is slightly busier than the past week that saw about $15.219 billion of new paper, according to Prospect News data.

There are more deals from recognizable corporate names on tap.

"This week was more Yankee issuers that people don't pay too much attention to," a source said.

Another source pegged the coming week as seeing $20 billion to $25 billion of new deals, skewing to the lower side of the spectrum.

"It's definitely going to be busier," they said. "We've been kind of low [issuance] recently."

While the source said there were a couple of big corporate names looking at the market, they added that it's "hard to tell" when they would come in, or if Monday would be busy.

The Markit CDX Series 17 North American investment-grade index ended Friday 1 basis point better at a spread of 89 bps.

"Very light volume," a trader said.

Goodman Group's notes traded more than 20 bps better in the secondary market.

Bank and financial paper tightened 3 bps to 8 bps.

Morgan Stanley's 5.5% notes due 2021 outperformed on the day in the sector, firming to 330 bps bid, 323 bps offered.

"Going out the door 8 [bps] better," a trader said.

The notes were quoted on Wednesday 13 bps better in the day's trading at 358 bps bid, 348 bps offered.

No activity was seen in Bank of Nova Scotia's $2.75 billion of covered bonds (Aaa/AAA/) sold in the U.S. market on Thursday, but the company's notes priced in January have come in since issuance.

Also in the sector, BB&T Corp.'s new notes were mixed in trading. JPMorgan Chase & Co.'s notes sold earlier in the week traded better on Friday.

Telecommunication bonds firmed 3 bps to 5 bps, led by AT&T, Inc.'s long bonds. Rogers Communications Inc.'s bonds traded flat.

Treasuries were mixed on Friday. The 10-year note yield rose 1 bp to 2.29%. The 30-year bond yield fell 1 bp to 3.4%.

Goodman gives terms

Goodman Group sold $500 million of 6% 10-year senior notes to yield Treasuries plus 380 basis points, according to a market source and press release.

The notes (Baa2/BBB/) were priced at 99.422 to yield 6.078% under Rule 144A and Regulation S.

There is a make-whole call at 50 bps over Treasuries.

Bookrunners were Barclays Capital Inc., J.P. Morgan Securities LLC and RBS Securities Inc.

The proceeds are being used to repay existing borrowings.

Goodman Group's new notes due 2022 traded stronger in the secondary market on Friday. The notes were quoted going out at 358 bps bid, 353 bps offered, a trader said.

The industrial property development and management company is based in Sydney, Australia.

BB&T mixed

BB&T's $1.05 billion of paper (A2/A-/A+) sold in two tranches on Thursday traded mixed in the secondary market, a trader said on Friday.

The 2.15% senior notes due 2017 widened to 118 bps bid, 113 bps offered. BB&T sold $750 million of the five-year notes at a spread of Treasuries plus 110 bps.

The second tranche of 3.95% subordinated notes due 2022 traded better at 173 bps bid, 168 bps offered. BB&T sold $300 million of the notes at 175 bps over Treasuries.

The bank and financial services company is based in Winston-Salem, N.C.

JPMorgan firms

JPMorgan Chase's 1.875% notes due 2015 (Aa3/A/) firmed to 126 bps bid, 121 bps offered on Friday, according to a trader.

JPMorgan Chase sold $1.5 billion of the three-year notes at Treasuries plus 130 bps.

The financial services company is based in New York City.

Scotiabank stronger

Bank of Nova Scotia's older 2.55% senior notes due 2017 traded 5 bps tighter at 85 bps on Friday and about half of the issue price from January, a source said.

Scotiabank sold $1.25 billion of the notes (Aa1/AA-/) on Jan. 5 at a spread of 172 bps plus Treasuries.

The Canadian bank is based in Halifax, N.S.

AT&T firms

AT&T's 5.55% global notes due 2041 firmed 5 bps on Friday to 144 bps bid, 137 bps offered.

The company sold $2 billion of the notes (A2/A-/A) on Aug. 15 at a spread of 185 bps plus Treasuries.

The communications company is based in Dallas.

Rogers inactive

Rogers Communications' 6.8% notes due 2018 traded unchanged on the day with the last trade seen on Wednesday at 145 bps bid, 150 bps offered, a trader said. The notes (Baa3/BBB-) were sold in 2008 at a spread of 278 bps over Treasuries.

The wireless and cable television company is based in Toronto.

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