Ford Motor Credit, Texas Instruments price; deal pace to pick up; BP tightens; Citi eases

By Cristal Cody

Eureka Springs, Ark., April 29 – Ford Motor Credit Co. LLC tapped the high-grade market on Friday with a $2.25 billion two-part offering of senior notes.

“Ford went pretty well,” one source said.

The notes broke about 1 basis point tighter in the secondary market, another market source said.

Texas Instruments Inc. came by with a $500 million sale of six-year notes that tightened about 3 bps in aftermarket trading.

Investment-grade corporate issuers priced about $15 billion of new bonds over the week, while the pace is expected to double in the week ahead.

“Next week, we’re saying $30 billion,” a source said on Friday of expected volume.

In the secondary market, BP Capital Markets plc’s notes priced on Thursday traded about 5 bps to 10 bps tighter than issuance.

Citigroup Inc.’s new 3.4% notes due 2026 softened in secondary trading.

The Markit CDX North American Investment Grade series 23 index closed on Friday 1 bp weaker at a spread of 77 bps.

Ford prices $2.25 billion

Ford Motor Credit sold $2.25 billion of senior notes (Baa2/BBB/) in two parts on Friday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $1.25 billion of 2.021% three-year notes at par to yield a spread of Treasuries plus 110 bps. The notes priced on the tight side of guidance of Treasuries plus 115 bps, plus or minus 5 bps.

The notes were quoted in the secondary market at 109 bps bid, 107 bps offered.

Ford Motor Credit also sold $1 billion of 3.096% seven-year notes at par to yield a spread of Treasuries plus 150 bps, compared with guidance of Treasuries plus 155 bps, plus or minus 5 bps.

In the secondary market, the notes traded at 149 bps bid.

Bookrunners for the deal were BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and SMBC Nikko Securities America, Inc.

Proceeds will be added to the company’s general funds and will be available for the purchase of receivables, for loans and for use in connection with the retirement of debt.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based automaker Ford Motor Co.

Texas Instruments sells notes

Texas Instruments sold $500 million of 1.85% six-year senior notes at 99.739 to yield 1.896% on Friday, according to a market source and an FWP filing with the SEC.

The notes (A1/A+/) priced at a spread of Treasuries plus 60 bps, on the tight side of price talk of Treasuries plus 65 bps, plus or minus 5 bps.

In secondary trading, the bonds tightened to 57 bps bid, 55 bps offered.

Barclays, BofA Merrill Lynch, Mizuho, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG and Morgan Stanley were the bookrunners.

Proceeds will be used to repay a portion of the 2.375% notes due May 16, 2016 and for general corporate purposes.

Texas Instruments is a Dallas-based semiconductor designer and manufacturer.

BP Capital tightens

BP Capital Markets’ 3.119% notes due 2026 tightened to 121 bps bid, 118 bps offered on Friday, according to a market source.

The company sold $1.25 billion of the notes (A2/A-) on Thursday at a spread of 130 bps over Treasuries.

BP Capital Markets is a financing arm of London-based oil and gas company BP plc.

Citi eases

Citigroup’s 3.4% notes due 2026 (Baa1/BBB+/A) were quoted at 154 bps bid, 152 bps offered in the secondary market on Friday, a source said.

Citigroup sold $2 billion of the notes on Tuesday at a spread of Treasuries plus 150 bps.

The financial services company is based in New York.

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