IBM, Affiliated Managers take advantage of solid tone; Affiliated Managers, BP firm

By Cristal Cody and Aleesia Forni

Virginia Beach, Feb. 6 - Issuers including International Business Machines Corp., Deutsche Bank AG, London branch and Affiliated Managers Group Inc. took advantage of another positive tone for the high-grade bond market.

The companies helped push the day's total to $8.6 billion of new paper priced during the session, bringing the week's supply to more than $15 billion.

International Business Machines brought the day's largest deal to the session, selling $4.5 billion of notes in four tranches.

The company priced $1 billion of two-year floating-rate notes at par to yield Libor plus 7 basis points and $750 million floaters due 2019 at Libor plus 37 bps.

A $750 million tranche of 1.95% notes due 2019 sold at 48 bps over Treasuries, while a $2 billion tranche of 3.625% notes due 2024 priced with a spread of 95 bps over Treasuries.

Also on Thursday, Deutsche Bank's London branch sold a three-part $3.5 billion issue of senior notes.

There was $1 billion of three-year floaters priced at par to yield Libor plus 61 bps.

A $1.5 billion tranche of 1.4% notes due 2017 was sold with a spread of 75 bps over Treasuries.

Finally, $1 billion of 2.5% five-year notes sold at Treasuries plus 100 bps.

Bank of New York Mellon Corp. also came to market on Thursday.

The bank sold a $200 million issue of floating-rate senior notes at par to yield Libor plus 50 bps, according to an FWP filed with the Securities and Exchange Commission.

The session also saw a $400 million 10-year new issue from Affiliated Managers Group, though full details were not available at press time.

In the preferred market, M&T Bank Corp. sold $350 million of 6.45% $1,000-par series E fixed-to-floating-rate noncumulative perpetual preferreds, a source said.

A trader said price talk on the issue was around 6.5%, though at mid-morning he had yet to see any markets for the paper.

"You don't usually see gray markets in the $1,000-par markets," another source noted.

Also on Thursday, Nederlandse Waterschapsbank NV set talk for a planned four-year offering of floating-rate notes.

The Rule 144A and Regulation S notes are being talked at 23 bps over Libor.

Investment-grade bonds traded 2 bps to 3 bps better in general over the day, according to market sources.

"Little bit tighter," a trader said.

The Markit CDX North American Investment Grade series 21 index firmed 3 bps to a spread of 70 bps on Thursday.

Affiliated Managers' 4.25% notes due 2024 tightened more than 10 bps on the offered side in aftermarket trading, a trader said.

The notes tightened to 152 bps offered headed into the close, a trader said.

Deutsche Bank's paper firmed about 1 bp to 4 bps in the secondary market, a trader said.

IBM's notes priced late and were not seen in the aftermarket late afternoon, sources said.

"Not seeing any grays," a trader said.

In other trading, BP Capital Markets plc's 3.81% notes due 2024 firmed 5 bps from where the notes priced on Wednesday, a trader said.

IBM four-parter

International Business Machines priced a four-part sale of notes (Aa3/AA-/A+) on Thursday, according to a syndicate source.

The deal included $1 billion of two-year floaters priced at par to yield Libor plus 7 bps.

A second tranche was $750 million floaters due 2019 priced at Libor plus 37 bps.

There was also $750 million of 1.95% five-year notes priced with a spread of 48 bps over Treasuries, or 99.75, to yield 2.001%.

A $2 billion tranche of 3.625% 10-year notes sold at 99.792 to yield 3.65, or 95 bps over Treasuries.

BNP Paribas Securities Corp., Goldman Sachs & Co., HSBC Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities Inc. and RBC Capital Markets LLC were the joint bookrunners.

Proceeds will be used for general corporate purposes.

The information technology and computer company is based in Armonk, N.Y.

Deutsche Bank new issue

Deutsche Bank's London branch priced $3.5 billion of senior notes on Thursday, an informed source said.

A $1 billion tranche of three-year floaters priced at par to yield Libor plus 61 bps.

The company priced $1.5 billion of 1.4% three-year notes at 99.991 to yield 1.403%, or Treasuries plus 75 bps.

There was also $1 billion tranche of 2.5% notes due 2019 priced with a spread of Treasuries plus 100 bps.

Pricing was at 99.953 to yield 2.51%.

Deutsche Bank's floating-rate notes due 2017 firmed 1 bp to 60 bps bid in the secondary market, a trader said.

The tranche of notes due 2019 traded better at 96 bps bid, 93 bps offered.

Deutsche Bank Securities Inc. was the sole bookrunner.

The financial services company is based in Frankfurt.

BNY brings floaters

Bank of New York Mellon priced a $200 million issue of floating-rate senior notes (A1/A+/AA-) on Thursday at par to yield Libor plus 50 bps, according to an FWP filed with the SEC.

JPMorgan was the bookrunner.

BNY Mellon is a New York-based financial services company.

M&T sells preferreds

M&T Bank priced $350 million of 6.45% $1,000-par series E fixed-to-floating-rate noncumulative perpetual preferreds (expected ratings: Baa3/BBB/BB), according to a market source on Thursday.

Price talk was around 6.5%, a trader said.

JPMorgan, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the joint bookrunners. Sandler O'Neill + Partners LP is the joint lead manager.

Dividends will be fixed and payable semiannually through Feb. 15, 2024. The interest rate will then begin to float at Libor plus 361 bps and will be paid on a quarterly basis.

The preferreds will become callable on or after Feb. 15, 2024 or in whole within 90 days of a regulatory capital treatment event.

The new securities will not be listed.

The Buffalo-based bank will use proceeds from the offering for general corporate purposes, which may include the repayment of debt.

Nederlandse Waterschapsbank talk

Nederlandse Waterschapsbank announced talk for its planned four-year offering of floating-rate notes at Libor plus 23 bps on Thursday, according to a market source.

HSBC Securities and RBS Securities Inc. are the joint bookrunners for the proposed Rule 144A and Regulation S deal.

The issuer provides loans to municipalities and other public programs and is based in the Hague.

BP firms

BP's 3.81% notes due 2024 tightened in secondary trading to 110 bps bid on Thursday, a trader said late afternoon.

BP sold $1.25 billion of the notes (A2/A/) at Treasuries plus 115 bps in a $2.5 billion three-part deal on Wednesday.

The unit of oil company BP plc is based in London.

Stephanie N. Rotondo contributed to this review

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