Big banks JPMorgan, BNP Paribas get large deals done; Ryder notes firm 5 bps; Dover weaker

By Andrea Heisinger and Cristal Cody

New York, Feb. 17 - BNP Paribas SA and JPMorgan Chase & Co. boosted the week's issuance volume on Thursday with sizeable bond sales.

JPMorgan's $3 billion deal of five-year notes was larger and also got a slightly better coupon and spread.

France's BNP Paribas priced $2 billion of five-year notes late in the afternoon.

There hadn't been any bond deals set for the day, but it may have been the empty market that prompted the two large banks to jump in, a syndicate source away from both sales said.

"They probably figured less competition," he said. "I think they both were probably pre-sold."

The names were likely also taking advantage of the large amount of interest in quality high-grade paper, he added. Several recent sales have been upsized at least slightly or had tranches added on reverse demand. Nearly all of the bonds sold in the past month have been oversubscribed.

Although there has been a steady flow of new bonds into the primary for the week, none of the sales has been "super exciting," another source said.

"I mean, everyone had success, but you can't really pick one [to stand out]," she said.

Friday could be quiet with Federal Reserve chief Ben Bernanke speaking in the morning, the source said.

Overall investment-grade Trace volume dipped less than 5% to about $14.8 billion, a market source said.

In the secondary market, BNP Paribas' notes firmed, while the five-year notes from JPMorgan Chase traded flat, sources said.

Bonds priced the previous day from Dover Corp. were weaker in trading. Ryder System, Inc.'s new five-year notes traded about 5 basis points tighter, a trader said.

The Markit CDX Series 14 North American investment-grade index was 2 bps tighter at a spread of 79 bps, according to Markit Group Ltd.

Treasuries rose despite stronger economic data on Thursday as unrest from the Middle East helped "put a bit into the curve," a source said.

The 10-year note yield dropped 5 basis points to 3.57%. The 30-year bond yield fell 1 bp to 4.67%.

JPMorgan prices $3 billion

Banking giant JPMorgan Chase priced $3 billion of 3.45% five-year notes (Aa3/A+/AA-) in a quick sale at a spread of 120 bps over Treasuries, said a market source away from the deal.

J.P. Morgan Securities LLC was the bookrunner.

Proceeds are being used for general corporate purposes.

JPMorgan last sold notes with a five-year maturity in a $1.75 billion deal on Nov. 10 at a coupon of 2.6% and spread of 140 bps.

In the secondary market, the new notes due 2016 traded flat at 120 bps bid, 118 bps offered, a trader said.

The financial services company is based in New York City.

BNP sells five-years

BNP Paribas priced $2 billion of 3.6% five-year notes late on Thursday to yield 135 basis points over Treasuries, a market source said.

The notes (Aa2/AA/AA-) sold at 99.896 with a yield of 3.623%. They are non-callable.

The bookrunner was BNP Paribas Securities Corp.

BNP last priced five-year notes in a $600 million reopening of 3.25% notes due 2015 on Oct. 7, 2010. The securities priced at 107 bps over Treasuries.

The notes were seen trading tighter in the secondary at 131 bps bid, 127 bps offered and later slightly wider at 131 bps bid, 130 bps offered, a trader said.

The financial services company is based in Paris.

Dover weaker

Dover's $800 million of senior notes (A2/A) sold in two tranches the previous day weakened in the secondary market, a trader said.

The $450 million of 4.3% due 2021 priced at a spread of Treasuries plus 68 bps, and the notes were seen trading at 70 bps bid, 67 bps offered.

The $350 million of 5.375% bonds due 2041 that sold at a spread of Treasuries plus 78 bps traded on Thursday at 78 bps bid, 73 bps offered.

The manufacturer of industrial, engineering, fluid management and electronic technical components and equipment is based in Downers Grove, Ill.

Ryder's notes firm

Ryder System's debt sold the previous day was stronger in secondary trading.

The company's $350 million of 3.15% medium-term notes due 2015 (Baa1/BBB-/A-) priced at Treasuries plus 125 bps on Wednesday and traded tighter at 120 bps bid, 118 bps offered, a trader said.

The transportation and logistics company is based in Miami.

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