Enel prices $3.5 billion of notes, Florida Power, J.P. Morgan also brave market on quiet day

By Andrea Heisinger

Omaha, Sept. 13 - Italian company Enel Finance International had the big issue on a quiet Thursday, pricing an upsized $3.5 billion of notes in three tranches.

Other new issues came from Florida Power Corp. d/b/a Progress Energy Florida Inc. and J.P. Morgan Chase & Co.

Enel's issue priced late and was an upsized $3.5 billion of notes in 5.25-year, 10-year, and 30-year tranches. They are being distributed via Rule 144A.

Price talk for the 5.25-year tranche was in the 135 bps area, with the 10-year at 160 bps and 30-year at 180 bps, a market source said.

Terms were not available as of press time Thursday.

Bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc.

The issue amount was less than what Enel hoped to raise, one market source said.

"They wanted $5 billion," the source said. "The spreads probably gave them pretty good sticker shock."

When the deal was announced, there were whispers of price talk, and the tranches will likely be priced at spreads multiple basis points higher, the source said.

The source said he expected the 5.25-year tranche would actually come at 155-160 bps, with the 10-year at 180 bps and the 30-year at 210 bps, all well above talk.

"I don't know how well they were prepared for that, meaning the issuer," the source said.

Bank of America Corp. furthered its reopening of previous issues, adding $350 million to its Sept. 11 pricing of five-year 5.375% senior notes. This brings the total issue to $1 billion.

Florida Power priced $750 million of first mortgage bonds in two tranches. The $250 million tranche of 10-year 5.8% bonds priced at a spread of Treasuries plus 135 basis points with a price of 99.731 and yield of 5.826%.

The $500 million tranche of 30-year 6.35% bonds priced at a spread of Treasuries plus 160 bps with a price of 99.868 and a yield of 6.36%.

J.P. Morgan's $2 billion in five-year senior floaters have a rate of three-month Libor plus 55 bps.

Terms were released for issues that priced late Wednesday from BlackRock, Inc. and Compass Bank.

BlackRock priced $700 million of 10-year 6.25% notes at a spread of Treasuries plus 195 bps, with a price of 99.196 and a yield of 6.36%.

Compass priced $350 million of 10-year 6.4% notes at a spread of Treasuries plus 200 bps with a price of 99.938 and a yield of 6.408%.

Aegon for Friday

An announced issue of perpetual capital securities from Aegon NV will price Friday, an informed source said. Bookrunners are Merrill Lynch, Pierce, Fenner & Smith Inc., Morgan Stanley & Co., Inc. and Wachovia Capital Securities LLC.

The success of last week's $6.9 billion issue from pharmaceutical company AstraZeneca plc has spurred the company to issue €750 million in Eurobonds. Like the $6.9 billion, this issue will also be used to repay a portion of outstanding commercial paper taken out during the acquisition of MedImmune Inc.

Holiday stills market

Thursday was a quiet day of trading because of the observance of Rosh Hashanah, a market source said.

"If people weren't desperate, they probably weren't going to put anything out on the one day where everyone's off," one trader said.

Other than Aegon, there won't be any other issues Friday, a market source said.

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