ACE INA, Tupperware, John Deere, Nomura, ILFC tap market; BNSF, Markel contract in trading

By Andrea Heisinger

New York, March 6 - Wednesday's session saw new investment-grade bond issues from ACE INA Holdings, Inc., Tupperware Brands Corp., CareFusion Corp., John Deere Capital Corp. and Nomura Holdings, Inc.

A $1.25 billion crossover trade from International Lease Finance Corp. was also done off the high-grade desk.

ACE sold $950 million in tranches due 2023 and 2043. There was a do-not-grow provision on the sale.

Investor demand was about $1.85 billion, including $850 million on the 10-year notes and $1 billion on the 30-year bonds, a source close to the ACE trade said.

John Deere priced $1 billion of bonds in two tranches, including a two-year floating-rate note and a five-year bond.

CareFusion sold $300 million of 10-year notes via Rule 144A and Regulation S by early afternoon. The terms of the sale were not available at press time.

Consumer home goods company Tupperware reopened a bond due 2021 to add $200 million. The total amount outstanding is $600 million.

Tokyo-based Nomura tapped the market for $1.5 billion of three-year bonds in two parts, one with a fixed rate and the other a floating rate.

American Tower Corp. sold $1.8 billion of secured tower revenue securities, series 2013-1 and series 2013-2, through indirect subsidiaries. The sale had been announced in a press release on Monday.

A two-tranche sale announced by Avon Products, Inc. could price "as early as tomorrow," a source close to the offering said Wednesday.

"They aren't shopping it around yet, but it could be tomorrow or after that," the source added.

The sale is the New York-based beauty products company's first since 2009, and proceeds, along with cash on hand, are going toward debt repayment.

Secondary 'off a touch'

The secondary side of the market was said to be "off a touch" from Tuesday's tone and volume, according to a trader.

Volume sat at about $4.1 billion at midday, the trader said.

The new 1.3% five-year note from John Deere was seen 4 basis points tighter after the close, a source said.

Among recent sales seen trading were the notes sold Tuesday by Burlington Northern Santa Fe LLC, Markel Corp. and McKesson Corp.

BNSF's two new notes were seen offered between 5 bps and 7 bps tighter than where they priced. Markel's two new bonds remained tighter and made gains of a basis point or two from Tuesday's levels.

Meanwhile, McKesson's $900 million of notes in two parts were about 6 bps tighter.

A bond from Life Technologies Corp. was among Wednesday's most active issues in trading, a source said. The 6% note due 2020 was quoted at a spread of 338 bps in mid-afternoon. The $750 million of notes was sold on Feb. 11, 2010 at 232 bps over Treasuries.

There was news late Tuesday that the company had attracted interest from a buyout group. The biotechnology tools company is based in Carlsbad, Calif.

Investment-grade credit default swap costs were mostly unchanged on the day, a source said.

Bank of America's CDS costs were unchanged at 115 bps bid, 119 bps offered, as were Citigroup's at 106 bps bid, 110 bps offered. JPMorgan Chase's CDS costs declined 1 bp to 75 bps bid, 78 bps offered, as did Wells Fargo's to 66 bps bid, 69 bps offered.

Among brokerage names, Merrill Lynch's CDS costs were 1 bp less at 102 bps bid, 109 bps offered. Morgan Stanley and Goldman Sachs' were both unchanged at 135 bps bid, 139 bps offered and 126 bps bid, 130 bps offered, respectively.

ACE sells at talk

ACE INA Holdings priced $950 million of senior notes (A3/A/A) in two parts, an informed source said.

The sale included a $475 million tranche of 2.7% 10-year notes priced at a spread of Treasuries plus 80 bps. The notes were talked in the 80 bps area.

There was also $475 million of 4.15% 30-year bonds sold at a spread of Treasuries plus 100 bps. Price guidance was in the 100 bps area.

Citigroup Global Markets Inc. and Wells Fargo Securities LLC were the active bookrunners. The passives were Mitsubishi UFJ Securities (USA) Inc. and Deutsche Bank Securities Inc.

Proceeds, along with available cash on hand if needed, are being used to repay at maturity $500 million of 5.875% senior notes maturing in June 2014 and $450 million of 5.6% senior notes maturing in May 2015.

The sale is guaranteed by ACE Ltd.

The company was last in the U.S. bond market with a $700 million sale of five-year notes on Nov. 18, 2010.

The Bermuda-based holding company for insurance and reinsurance subsidiaries is a unit of Zurich-based ACE Ltd.

Deere's $1 billion

John Deere Capital was in the market with a $1 billion sale of medium-term notes (A2/A/A) in two tranches, a market source said.

There was $600 million of two-year floating-rate notes sold at par to yield Libor plus 7 bps.

A $400 million tranche of 1.3% five-year notes priced at a spread of Treasuries plus 55 bps. The notes were quoted after the close at 51 bps bid, 50 bps offered.

The bookrunners were Barclays, BofA Merrill Lynch and HSBC Securities (USA) Inc.

The funding arm of agriculture and industrial equipment maker Deere & Co. is based in Moline, Ill.

Tupperware's reopening

Tupperware Brands reopened its issue of 4.75% senior notes (Baa3/BBB-/) due 2021 to add $200 million, a market source said.

Pricing was at a spread of Treasuries plus 225 bps. The spread was in line with whispered talk in the low to mid 200 bps area.

Total issuance will be $600 million including $400 million sold on May 25, 2011 at Treasuries plus 175 bps.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the active bookrunners.

The sale is guaranteed by Dart Industries Inc.

Proceeds are being used to repay a $75 million promissory note dated Feb. 1, 2013 issued to Wells Fargo Bank NA and for general corporate purposes including repayment of borrowings under a credit facility and funding a 2013 common stock repurchase program.

The home and consumer products company is based in Orlando, Fla.

Nomura sells in two parts

Nomura Holdings sold $1.5 billion of three-year notes (Baa3/BBB+/) in two tranches during the day's session, according to FWP filings with the Securities and Exchange Commission.

A $300 million tranche of floaters due 2016 sold at 99.83 with a coupon of Libor plus 145 bps.

There was also $1.2 billion of 2% notes due 2016 priced at 99.664.

The bookrunner was Nomura Securities International Inc.

Nomura was last in the U.S. bond market with a $1.25 billion sale of five-year notes on Jan. 12, 2011.

The financial holding company is based in Tokyo.

ILFC does crossover

International Lease Finance sold a $1.25 billion offering of split-rated senior notes (Ba3/BBB-/BB), according to an FWP filing with the SEC.

The sale included a $750 million tranche of 3.875% five-year notes priced at 99.996 to yield 3.875%.

There was also $500 million of 4.625% eight-year notes that sold at 99.994 to yield 4.625%.

A trader on the high-yield desk quoted the eight-year notes at a bid of par.

The sale was done off the high-grade syndicate desk, the source said.

Barclays, JPMorgan, Morgan Stanley & Co. LLC and RBC Capital Markets LLC were the active bookrunners.

Proceeds are being used for general corporate purposes including to repay debt and to purchase aircraft.

The aircraft lessor is based in Los Angeles.

American Tower's revenue bonds

American Tower sold $1.8 billion of secured tower revenue securities, series 2013-1 and series 2013-2, (Aaa//AAA) through indirect subsidiaries, according to a market source and a press release.

The sale was announced on Monday.

The $500 million tranche of 1.551% five-year securities sold at a spread of Treasuries plus 75 bps.

A $1.3 billion tranche of 3.07% 10-year notes was priced at a spread of 115 bps over Treasuries.

Pricing was done under Rule 144A and Regulation S.

The bookrunners were Barclays, Morgan Stanley, BofA Merrill Lynch and Credit Suisse Securities (USA) LLC.

The securities are backed by debt of two special-purpose subsidiaries of American Tower and will be secured primarily by mortgages on their interests in 5,195 communications sites, according to the press release.

The issuers plan to use the proceeds to repay all amounts outstanding under their debt backing the series 2007-1 commercial mortgage passthrough certificates and for general corporate purposes.

American Tower is a Boston-based independent owner, operator and developer of wireless and broadcast communications real estate.

BNSF bonds contract

Burlington Northern's 3% notes due 2023 were seen tighter than Tuesday at an offer of 103 bps over Treasuries, a trader said at midday. The notes sold at 110 bps.

The 4.45% bonds due 2043 were also better at a bid of 130 bps and offer of 128 bps. The bonds sold at 133 bps.

Burlington Northern, the holding company for railroad transportation subsidiaries, priced $1.5 billion of debentures and is based in Fort Worth.

Markel improves

A $500 million sale from Markel split evenly between tranches due 2023 and 2043 remained tighter and made slight gains from Tuesday's levels, a trader said.

The Glen Allen, Va.-based financial holding company saw its 3.625% notes due 2023 remain 6 bps tighter than their pricing level of 175 bps but unchanged from the previous day's trading at 169 bps bid, 164 bps offered.

The 5% 30-year bonds from the sale were slightly tighter at 188 bps bid, 187 bps offered. The bonds sold at 200 bps over Treasuries.

McKesson remains better

Health-care service and information technology company McKesson saw its 1.4% five-year notes in an odd-lot trade at 61 bps at midday - lower than the 67 bps spread, a trader said. A 2.85% note due 2023 from the same issue traded 6 bps better at a bid of 91 bps. The notes sold at 97 bps over Treasuries.

McKesson is based in San Francisco.

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