Deutsche Bank prices trust preferreds, Eksportfinans, RenRe sell notes; Medtronic stays firm

By Andrea Heisinger and Cristal Cody

New York, March 12 - Deutsche Bank Contingent Capital Trust V, RenRe North America Holdings Inc. and Eksportfinans ASA broke the trend of the usually barren end of the week by pricing bonds on Friday.

Deutsche and RenRe had been announced on Thursday and went overnight.

The Deutsche Bank sale was a reopening of perpetual trust preferred securities. This $120 million sale of 4.8 million shares followed a new deal of trust preferreds earlier in the week by Citigroup Capital XII.

RenRe priced its $250 million of 10-year notes early in the day after the maturity was changed from 2015 due to more interest in the longer bond.

The smallest sale of the day came from Eksportfinans. The Norway-based lender sold $100 million of two-year floating-rate notes.

New deal flow is expected to continue in the coming week, although at a lighter volume.

The week topped out with close to $30 billion in new deals.

But others are expecting a full calendar.

"Hearing a lot of supply is expected next week," one source said.

In secondary trading on Friday, Thursday's $3 billion offering from Medtronic, Inc. stayed strong but saw little movement, according to sources.

Meanwhile on Friday, overall Trace volume slipped less than 1% to about $12.3 billion, according to a market source.

Elsewhere, the CDX Series 13 North American high-grade index ended Friday unchanged on the week at a mid bid-asked spread level of 83 bps, market sources reported.

In addition, U.S. Treasuries were seen firmer. The yield on the benchmark 10-year Treasury note tightened 3 bps to 3.70%. In addition, the yield on the 30-year bond firmed 5 bps to 4.62%.

Deutsche reopens trust preferreds

Deutsche Bank Contingent Capital Trust reopened its 8.05% perpetual trust preferred securities by early afternoon to add $120 million, or 4.8 million shares, priced at par of $25, according to an FWP filing with the Securities and Exchange Commission.

The securities (Baa2/BBB+/A) have an overallotment option of $18 million, or 720,000 securities, to be exercised within 15 days.

The deal is guaranteed on a subordinated basis by parent company Deutsche Bank AG.

Proceeds will be used to purchase class B preferred securities issued by Deutsche Bank.

Total issuance is now 55.4 million shares, including the 50.6 million issued on May 9, 2008.

Deutsche Bank Securities ran the books.

The issuing trust is based in New York City.

RenRe sells $250 million in two-day sale

RenRe North America Holdings priced $250 million of 5.75% 10-year senior unsecured notes (A3/A/A-) early in the day to yield 210 bps over Treasuries, an informed source said.

The sale went overnight after being announced on Thursday. Maturity on the notes was initially at five years, but the bookrunners "switched gears" after finding there was more interest and money for a 10-year note, a source said.

Books were slightly oversubscribed with about $350 million to $450 million, he said.

The deal is guaranteed by parent company RenaissanceRe Holdings Ltd.

Bank of America Merrill Lynch and Citigroup Global Markets were bookrunners.

Proceeds will be used for general corporate purposes, including repayment of $80 million in intercompany borrowings.

The reinsurance company is based in Plano, Texas.

Smaller sales in coming week

One of the busiest weeks recently came to an end with about $29 billion in new bonds under its belt.

"We had a lot," a source said late on Friday of issuance in recent days. "That's crazy [it was] close to $30 billion."

The number of deals lined up for the coming week looked comparatively light, despite some belief that the tone would hold and there were more bonds out there to price.

"I was expecting it to be busy," a syndicate source said. "So far we don't have anything, and I'm not hearing [of much] away."

The market for major issues of trust preferred securities was at least partly cracked back open in past days after being effectively closed for a couple of years.

Both Citigroup Capital XII and Deutsche Bank Contingent Capital Trust V priced preferred deals, with Deutsche Bank doing a reopening.

Eksportfinans prices floaters

Norway's Eksportfinans priced $100 million of two-year floating-rate medium-term notes (Aa1/AA/AA) at par to yield three-month Libor plus 12 bps, according to an FWP filing with the SEC.

RBS Securities ran the books.

The lender to the export and municipal sectors is based in Oslo.

RenRe unnoticed

RenRe North America Holdings sold $250 million of 5.75% notes due 2020 at Treasuries plus 210 bps but no activity was seen on the notes in secondary trading, according to a source on Friday.

"I didn't see a thing on it," the source said.

Medtronic stays firm

Meanwhile Medtronic's new senior unsecured notes (A1/AA-) stayed strong but saw little movement on Friday, a trader said.

Medtronic, a Minneapolis-based medical technology company, priced $3 billion of notes in three tranches on Thursday and the notes immediately firmed in the secondary.

In Friday's trading, the 3% notes due 2015 were seen at 55 bps offered, the same as in late trading on Thursday, a source said. Medtronic priced the notes at Treasuries plus 60 bps.

Also in trading, the 4.45% notes due 2020 were quoted at 72 bps offered, slightly wider than the last quote seen a day earlier at 72 bps bid, 70 bps offered, according to sources. The 10-year notes were priced at Treasuries plus 75 bps.

In addition, the bid on Medtronic's last tranche, 5.5% bonds due 2040, moved out 1 bp on Friday to 91 bps bid, 88 bps offered, a trader said.

The 30-year bonds were seen on Thursday at 90 bps bid, 88 bps offered after pricing earlier at Treasuries plus 90 bps.

"About where they were yesterday," the trader said.

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