Ruby Pipeline brings deal after delay; coming week seen active; HSBC firms; Aflac trades flat

By Andrea Heisinger and Cristal Cody

New York, Feb. 10 - The month of February got off to a strong start in the investment-grade bond market despite only one deal being priced on Friday.

According to Prospect News data, there was more than $25 billion of new paper sold in 26 deals during the past week, including Friday's.

Ruby Pipeline LLC brought its $1.08 billion of senior notes priced in five- and 10-year maturities after the deal was indefinitely delayed from Oct. 31.

"I don't know where that one came from," a source away from the trade said. "We thought it was dead and dropped off the map, and then all of a sudden it was priced."

Distress over the debt crisis in Greece flared up again on Friday as headlines over the country's reactions to austerity measures and bailout package hit.

Monday could be busy or not depending on how those headlines move over the weekend.

"Today was another scare because of Greece, so we'll see how the market shapes up," a syndicate source said.

"We're supposed to be relatively busy next week."

The issuance amount for the coming week is expected to be similar to predictions for the past week of $15 billion to $20 billion - an amount that was surpassed.

"We're thinking the same for next week," one source said. "A lot of the deals did well, too, [in trading]."

There is a combination of deals on tap from corporate and financial names, a second syndicate source said.

Overall trading volume was more than $9 billion on Friday.

"Seemed like decent activity," a trader said.

The Markit CDX Series 17 North American Investment Grade index eased 3 basis points to a spread of 99 bps.

"Spreads were coming in generally ... this week," a trader said. "Today, they may have widened out a little bit but not much."

HSBC USA Inc.'s $1.5 billion of 2.375% three-year paper traded better, while Wells Fargo & Co.'s three-year notes edged wider.

Aflac Inc.'s bonds sold earlier this week had a "lot of people trying to trade them," though both tranches are trading wrapped around issuance, a source said on Friday.

Treasuries rallied on a new round of opposition to measures for a second Greek financial bailout package. The 10-year note yield dropped 6 bps to 1.98%. The 30-year bond yield fell 4 bps to 3.14%.

Ruby brings delayed deal

Ruby Pipeline sold $1.08 billion of senior notes (Baa3/BBB-/BBB-) in two tranches after the trade was delayed from October, a market source said.

The $250 million of 4.5% five-year notes sold at par to yield a spread of Treasuries plus 369.1 bps.

An $825 million tranche of 6% 10-year notes priced at par to yield 407.3 bps over Treasuries.

Barclays Capital Inc., RBC Capital Markets LLC and RBS Securities Inc. were the bookrunners.

The Rule 144A deal was initially announced on Oct. 31.

Proceeds, along with a separate interim loan facility, will be used to refinance a project finance loan.

Ruby Pipeline, based in Houston, is a subsidiary of El Paso Corp. and Global Infrastructure Partners LLC. It is a 680-mile natural gas pipeline that stretches from Wyoming to Oregon.

HSBC tighter

HSBC USA's 2.375% senior notes due 2015 traded better again on Friday, a trader said.

The notes were seen at 170 bps offered late in the day.

The notes had come in 30 bps to 180 bps bid, 175 bps offered on Thursday.

HSBC USA sold $1.5 billion of the notes (A1/A+/AA) at a spread of 210 bps over Treasuries on Wednesday.

The U.S. subsidiary of U.K.-based HSBC Holdings plc is based in New York.

Wells Fargo weaker

Wells Fargo's 1.25% notes due 2015 traded a little wider on the offer side at 100 bps from 98 bps bid, 95 bps offered the previous day, a trader said Friday.

Wells Fargo sold $2 billion of the notes (A2/A+/AA-) on Wednesday at 100 bps over Treasuries.

The financial services company is based in San Francisco.

Aflac active

Aflac's $750 million offering of senior notes (A3/A-/A-) in two tranches on Wednesday are "pretty active" in the secondary market, a source said on Friday.

The 2.65% notes due 2017 traded on Thursday and Friday at 185 bps bid, traders said. Aflac sold $400 million of the notes at a spread of Treasuries plus 185 bps.

The 4% notes due 2022 were "offered this morning at 205," one trader said on Friday. Aflac sold the $350 million tranche at Treasuries plus 205 bps.

The holding company for supplemental health and life insurance subsidiaries is based in Columbus, Ga.

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