Export Development Canada raises $1 billion; Dell stronger; high-grade spreads soften

By Cristal Cody

Eureka Springs, Ark., May 19 – Export Development Canada tapped the primary market on Thursday with a $1 billion offering of 1.5% five-year notes (Aaa/AAA) that priced at 99.847 to yield 1.532%.

The notes priced with a spread of 16.2 basis points over Treasuries.

BNP Paribas Securities Corp., Goldman Sachs International, BofA Merrill Lynch and Scotia Capital (USA) Inc. were the bookrunners.

Proceeds will be used for general corporate purposes.

Southern Co. was expected to price a 10-tranche offering of fixed- and floating-rate senior notes. Final pricing details were not available by press time.

The Markit CDX North American Investment Grade index closed the day 1 bp softer at a spread of 85 bps.

In the secondary market earlier in the day, Dell, Inc.’s $20 billion six-part offering of senior secured notes (Baa3/BBB-/BBB-) brought to market on Tuesday to fund its acquisition of EMC Corp. traded more than 15 bps to about 50 bps tighter in the secondary market.

The 3.48% notes due 2019 were seen at 209 bps offered in the secondary market early on Thursday, according to a market source.

The company sold $3.75 billion of the notes on Tuesday at Treasuries plus 250 bps.

Dell’s tranche of 8.35% bonds due 2046 tightened to 556 bps offered in secondary trading, the source said.

The bonds priced on Tuesday in a $2 billion tranche at Treasuries plus 575 bps.

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