New York Life sells backed notes, Alta Wind plans pass throughs; Citi, BofA, JPMorgan firm

By Andrea Heisinger and Cristal Cody

New York, July 9 - New York Life Global Funding priced bonds on an otherwise slow Friday, wrapping up a week of decent tone and steady issuance.

The arm of New York Life Insurance Co. priced an upsized $400 million of notes due late in 2013. They were priced under Rule144A.

Alta Wind Holdings II-IV LLC announced plans to price $412.2 million in pass-through trust certificates due in 2035.

The coming week is not looking busy, syndicate sources said at the end of the day.

This past week held onto its good tone, and that improvement could help ease some issuers into the market earlier in the week rather than waiting until Tuesday or Wednesday, one source said.

"I see it being fairly steady, but nothing major," he said.

Trading was light in the secondary on Friday, though paper from Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. firmed, sources said.

Also, New York Life Global Funding's new 1.85% notes due 2013 tightened in the secondary market, a source said.

Overall investment-grade Trace volume dropped nearly 30% to under $8 billion on Friday, according to a source.

"Although it seemed like a low volume day, spreads are in about 3 to 5 bps," a trader said.

The CDX Series 14 North American investment-grade index came in 3 bps to a spread of 110 bps, according to a source.

Stocks continued their weeklong rally and sent long-term government yields up.

The yield on the benchmark 10-year Treasury note rose 2 bps to 3.05%. The 30-year bond yield added 3 bps to 4.04%.

New York Life prices backed bonds

New York Life Global Funding priced an upsized $400 million of 1.85% notes due 2013 by early afternoon to yield Treasuries plus 85 bbps, a source away from the deal said.

The deal was upsized from an initial $300 million, he said, adding that demand was high for the notes because it was a recognizable name.

The notes (Aaa/AAA) are backed by guaranteed investment certificates and were priced under Rule 144A

Bank of America Merrill Lynch and Deutsche Bank Securities were bookrunners.

The arm of insurance company New York Life is based in New York City.

New bonds keep coming

The week ended with New York Life's deal, and more bonds are expected to come to the market in the coming week.

"I don't think it will be real busy," a source said. "We should see some one-offs, no big blockbusters."

He added that there "aren't any big benchmark" deals expected, just a steady stream of smaller sales.

"I think it will be relatively active - maybe a trade or two per day."

A second source said new paper volume should be similar to the past week, minus the large, drawn out deals like the $3 billion sale in three tranches from Time Warner Inc.

"I hope we don't have more like that," he said. "That one took all day and a lot of coordinating."

Alta Wind selling pass-throughs

Alta Wind Holdings is planning to price $412.2 million in pass-through trust certificates (/BBB-/BBB-) due 2035 early in the coming week, an informed source said.

Bookrunners are Barclays Capital Inc., Citigroup Global Markets and Credit Suisse Securities.

The subsidiary of renewable energy company Terra-Gen Power LLC is based in New York City.

New York Life firms

In a rare new deal on a Friday, New York Life Global Funding's new 1.85% notes due 2013 were stronger in secondary trading, a source said.

The three-year notes priced at Treasuries plus 85 bps and late Friday traded tighter at 83 bps bid, 78 bps offered.

Bank paper tighter

Longer-term bank paper firmed in the secondary on Friday, sources reported.

"We get earnings on JPM, BAC and Citi next week, so that'll be interesting," a trader said.

Citigroup's 8.5% notes due 2019 (A3/A) were 9 bps tighter at 256 bps over Treasuries early Friday and continued to gain strength, ending the day tighter at 247 bps, sources said.

Also in trading, JPMorgan's 6.3% notes due 2019 (Aa3/A+) firmed 11 bps to 140 bps from 151 bps the previous day.

Elsewhere in the sector, Bank of America's notes due 2019 tightened, while its other high-grade debt was unchanged. The Charlotte, N.C.-based bank's 7.625% notes due 2019 (A2/A) firmed to 233 bps over Treasuries from 240 bps on Thursday, a source said.

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