Dexia, Standard Chartered, Orix, Regions sell notes; Standard Chartered gains; Goldman firmer

By Andrea Heisinger and Cristal Cody

New York, April 21 - Dexia Credit Local, New York branch, Standard Chartered Bank, Regions Financial Corp. and Orix Corp. all priced bonds on a Wednesday in the high-grade bond market that was heavy on issuers from the financial sector.

There was also a reopening of notes by BNP Paribas.

Belgium-based Dexia priced $4.5 billion of notes in two tranches. The deal was split evenly between four-year fixed-rate notes and four-year floaters.

Standard Chartered Bank sold $2 billion of five-year notes in late afternoon under Rule 144A.

Regions Financial both upsized and reallocated its deal to $750 million in two tranches. It was initially announced at $500 million in five-year notes but a tranche of three-year notes was subsequently added.

Japan's Orix sold $750 million in five-year notes in an offering that went overnight from Tuesday.

France's BNP Paribas reopened an issue of notes due 2015 to add $400 million. It brings the total amount of the notes to $1.15 billion.

The day was monopolized by the financial sector - most of which were deals from issuers outside the United States. Only the Regions Financial sale was from a domestic name, and it came a day after the company emerged from earnings blackout.

"I think it was their ticket in," a source said of the previous day's window for new deals.

Two of Wednesday's sales went overnight from Tuesday.

Secondary trading was stronger on Wednesday with a round of new short financial paper, including the high-grade offering from Standard Chartered Bank that firmed in trading, according to sources.

Also on Wednesday, Goldman Sachs Group Inc.'s notes appeared to firm and demand for short bank paper remained strong, according to sources.

Overall Trace activity rose 8% to about $14 billion, according to a source.

"Volume's decent," one trader said.

The CDX Series 14 North American high-grade index eased 1 basis point to a mid bid-asked spread level of 87 bps, according to a source.

Meanwhile, U.S. Treasuries were strong.

The yield on the 10-year benchmark Treasury note firmed 6 bps to 3.74%, and the yield on the 30-year Treasury bond tightened 6 bps to 4.62%.

Dexia sells $4.5 billion

Dexia Credit Local sold $4.5 billion of notes (Aa1/AA+) in two tranches through its New York branch by early afternoon after the sale went overnight, an informed source said.

A $2.25 billion tranche of four-year floating-rate notes priced at par to yield three-month Libor plus 48 bps.

A second $2.25 billion tranche of 2.75% four-year notes priced at a spread of Treasuries plus 114 bps.

The deal was priced under Rule 144A. It will be "the last government-guaranteed deal" backed by the governments of Belgium, France and Luxembourg, a source said Tuesday when the deal was announced.

Bank of America Merrill Lynch, Citigroup Global Markets, Deutsche Bank Securities and J.P. Morgan Securities ran the books.

The bank and financial services company is based in Brussels.

Regions upsizes to $750 million

Regions Financial priced an upsized $750 million of senior unsecured notes (Baa3/BBB-/BBB+) in two tranches, a source close to the sale said.

The deal was originally announced at $500 million in a single tranche of five-year notes, with the three-year tranche added later.

It came a day after the issuer reported a $255 million loss for the first quarter.

The $250 million of 4.875% three-year notes priced at a spread of Treasuries plus 350 bps.

A $500 million tranche of 5.75% five-year notes sold at a 350 bps spread over Treasuries.

Both tranches priced at the tight end of talk in the range of 350 to 355 bps over Treasuries, the source said.

Credit Suisse Securities, Goldman Sachs & Co. and Morgan Keegan & Co. ran the books.

Proceeds are being used for general corporate purposes.

The financial holding company is based in Birmingham, Ala.

Financials monopolize primary

It was another busy day for new investment-grade bonds, and the corporate deals that were priced all came from the financial sector.

This is likely due to a boost provided by solid earnings in past days by Citigroup Inc. and Goldman Sachs Group Inc. At least one of the issuers, Regions Financial, priced bonds immediately after exiting an earnings blackout.

"We haven't seen many [financial issues] lately," a source said.

The day may also have been coasting on the good fumes from Tuesday, when several new industrial, financial and sovereign deals were priced.

No new headlines about hot button topics like Goldman Sachs at the top of the day may have also made the decision to issue for the day easier.

A source who worked on one of the day's sales said the market "looked good," but that it was likely mostly tapped out for new deals for the remaining two days of the week.

"We don't have anything left that I know of," he said.

Orix sells five-years

Japan's Orix priced $750 million of 4.71% five-year unsecured notes on Wednesday to yield 220 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes (A3/A-) priced at 99.991 and are non-callable.

Bank of America Merrill Lynch, Morgan Stanley & Co. and UBS Investment Bank ran the books.

Proceeds are being used for general corporate purposes.

The financial services and joint stock company is based in Tokyo.

Standard Chartered prices $2 billion

London-based Standard Chartered Bank priced a $2 billion deal of 3.85% five-year notes (A3/A/A+) by late afternoon at a spread of 135 bps over Treasuries, a source said.

They were brought to market under via Rule 144A.

Barclays Capital, Credit Agricole Securities, J.P. Morgan Securities and Standard Chartered were bookrunners.

The bank and financial services company is based in London.

BNP reopens notes

BNP Paribas reopened its issue of 3.25% notes due 2015 to add $400 million, a source away from the sale said.

The notes (Aa2/AA/AA) priced at a spread of Treasuries plus 82 bps.

Total issuance is $1.15 billion, including $750 million priced on March 8 at Treasuries plus 97 bps.

BNP Paribas ran the books.

The financial services company is based in Paris.

Standard Chartered Bank firms

The $2 billion of 3.85% notes due 2015 that Standard Chartered Bank priced on Wednesday firmed in trading, according to a source.

The notes priced to yield Treasuries plus 135 bps and were last seen trading at 130 bps bid, 127 bps offered.

Orix flat

The new 4.71% notes due 2015 from Orix, priced at Treasuries plus 220 bps, were unchanged in late secondary trading, a source said.

"Seeing 220 bps" on the bid side, one trader said.

Elsewhere in the secondary, new offerings on Wednesday from Dexia, Regions Financial and BNP Paribas were not immediately active, the trader said.

Dexia priced $4.5 billion of four-year floaters and four-year fixed notes, Regions Financial sold an upsized $750 million of notes in two tranches and BNP Paribas reopened its 3.25% notes due 2015 to add $400 million.

"Nothing on Regions, BNP or Dexia," the trader said.

Goldman bounces

Meanwhile, Goldman continued to play a strong role in financial activity, sources said, as the world digests the civil fraud charges filed on Friday by the Securities and Exchange Commission.

"Goldman's bouncing around but ultimately seemed a bit tighter," a trader said. "Hearing there's still good demand for bank and financial three to seven years [maturities]."

However, near the close, Goldman's 6.15% notes due 2018 eased 1 bp to 158 bps. In addition, the New York-based bank's 7.5% notes due 2019 were seen wider at 172 bps from 169 bps on Tuesday, according to a source.

Elsewhere in the financial sector, Citigroup Inc.'s 8.5% notes due 2019 firmed 1 bp to 199 bps over Treasuries on Wednesday. Meanwhile, Citigroup's other notes were weaker, including the 6.375% notes due 2014 which eased 7 bps on the day, a source reported.

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