Strong issuance eyed; Cox Communications firms; MetLife mostly flat; Capital One better

By Cristal Cody

Eureka Springs, Ark., Sept. 9 – High-grade corporate pricing action stayed quiet on Friday after more than $50 billion of corporate bonds priced during the previous three days.

About $40 billion of volume is expected in the upcoming week, according to market sources.

Details emerged on new bonds priced on Thursday from issuers including BNZ International Funding Ltd., Woodside Finance Ltd. and BOC Aviation Pte Ltd.

Also, MetLife Global Funding I priced $2 billion of notes in four tranches.

Capital One, NA sold $2.55 billion of bank notes in three parts.

Cox Communications Inc. priced $1 billion of 10-year senior notes.

In the secondary market, Cox Communications’ notes tightened 5 basis points on the bid side.

MetLife’s notes traded mostly flat.

Capital One’s notes improved about 1 bp to 2 bps in secondary trading.

The Markit CDX North American Investment Grade index closed on Friday 4 bps softer at a spread of 76 bps.

MetLife prices $2 billion

MetLife Global Funding I priced $2 billion of notes in four tranches on Thursday, according to a market source.

The company sold $350 million of two-year floating-rate notes at Libor plus 34 bps.

There also was a $550 million tranche of 1.25% two-year notes sold at 60 bps over Treasuries.

MetLife priced $350 million of 1.55% three-year notes at 70 bps over Treasuries.

The company also sold $750 million of 1.95% five-year notes at a spread of 80 bps over Treasuries.

BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the bookrunners.

In the secondary market, the company’s 1.95% notes due 2021 traded mostly unchanged at 80 bps bid, 77 bps offered on Friday, a source said.

The issuer is a financing arm of New York City-based insurance and employee benefits company MetLife Inc.

Capital One taps market

Capital One sold $2.55 billion of bank notes in three parts on Thursday, according to a market source.

The company priced $300 million of three-year floating-rate notes at Libor plus 76.5 bps.

A $1.25 billion tranche of 1.85% three-year notes priced with a spread of 95 bps over Treasuries.

Capital One also sold $1 billion of 2.25% five-year notes at Treasuries plus 110 bps.

The fixed-rate tranches priced on the tight end of guidance.

The bookrunners were Barclays, Capital One Securities, Credit Suisse Securities, Deutsche Bank Securities Inc. and JPMorgan.

Capital One’s 2.25% notes due 2021 traded at 109 bps bid, 107 bps offered in the secondary market on Friday, a source said.

Capital One is a subsidiary of McLean, Va.-based Capital One Financial Corp.

Cox raises $1 billion

Cox Communications priced $1 billion of 3.35% 10-year senior notes with a spread of 175 bps over Treasuries on Thursday, a market source said.

The notes (Baa2/BBB/BBB+) priced on the tight side of guidance.

JPMorgan, Mizuho Securities USA Inc. and Wells Fargo Securities LLC were the lead managers.

Proceeds will be used for general corporate purposes, which may include funding a pension contribution payment and to repay existing debt.

In the secondary market on Friday, the notes traded tighter at 170 bps bid, 168 bps offered, a market source said.

Cox Communications is an Atlanta-based media and cable company and subsidiary of Cox Enterprises Inc.

Woodside prints $800 million

Woodside Finance priced $800 million of 3.7% 10-year notes with a spread of 210 bps over Treasuries on Thursday, according to a market source.

The notes priced on the tight side of talk.

Citigroup Global Markets Inc., Credit Suisse Securities, JPMorgan and UBS Securities LLC were the lead managers.

Woodside Finance is a Perth, Australia-based financing company and subsidiary of Woodside Petroleum Ltd.

BOC Aviation prices

BOC Aviation sold $500 million of 2.375% five-year senior notes with a spread of Treasuries plus 135 bps, according to a market source.

The notes (/BBB+/A-) priced on the tight side of guidance.

BOC, BNP Paribas Securities Corp., Citigroup, Deutsche Bank Securities, HSBC Securities (USA) Inc., JPMorgan and Wells Fargo were the lead managers.

Proceeds will be used for refinancing debt, capital spending and general corporate purposes.

BOC Aviation is a global aircraft leasing company based in Singapore.

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