MetLife prices; Nederlandse Waterschapsbank, EBRD on deck; bonds soften; MetLife firms 1 bp

By Aleesia Forni and Cristal Cody

Virginia Beach, April 7 - New issues from MetLife Inc. and Metropolitan Life Global Funding I were the highlight of an otherwise quiet session for the high-grade primary market.

MetLife Inc. sold an upsized $1 billion of 3.6% 10-year senior notes at Treasuries plus 90 basis points on Monday.

Meanwhile, MetLife Global came to market with a three-part $3.75 billion issue of senior notes.

The sale included $1 billion of three-year floaters priced to yield Libor plus 38 bps and $1.25 billion of 1.3% three-year notes sold at Treasuries plus 50 bps.

There was also a $1.5 billion tranche of 2.3% notes due 2019 sold with a spread of Treasuries plus 65 bps.

The company sold all three tranches at the tight end of talk.

In other market action on Monday, Nederlandse Waterschapsbank NV announced plans to issue $500 million of four-year senior notes, an informed source said.

The notes, which are expected to price on Tuesday, are guided in the area of mid-swaps plus 20 bps.

The European Bank for Reconstruction and Development also joined the forward calendar on Monday, announcing price guidance for a planned $1 billion issue of five-year notes at mid-swaps plus 1 bp.

The deal is also expected to price on Tuesday.

The lull in activity in the high-grade market is expected to continue this week, as companies enter into earnings blackout periods.

A source on Monday said he is expecting around $15 billion of paper to price this week, following last week's roughly $14.4 billion of issuance.

Investment-grade bond spreads opened slightly wider on Monday and continued to soften about 1 bps to 3 bps in general over the day, market sources said.

The Markit CDX North American Investment Grade series 22 index eased 1 bp to a spread of 68 bps.

In the secondary market, MetLife's 3.6% notes due 2024 traded about 1 bp tighter, a trader said.

MetLife Global Funding's new notes due 2017 headed out 1 bp better, according to a trader.

MetLife Global three-parter

Metropolitan Life Global Funding I priced $3.75 billion of senior notes (Aa3/AA-/AA-) in three tranches on Monday, an informed source said.

A $1 billion tranche of three-year floaters priced at par to yield Libor plus 38 bps.

The sale also included $1.25 billion of 1.3% three-year notes at Treasuries plus 50 bps.

MetLife Global Funding's tranche of notes due 2017 firmed to 49 bps bid, 45 bps offered in aftermarket trading, a trader said.

Finally, $1.5 billion of 2.3% notes due 2019 priced with a spread of Treasuries plus 65 bps.

All three tranches sold at the tight end of talk.

BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners for the Rule 144A and Regulation S deal.

MetLife Global Funding is the funding arm of New York-based insurance company Metropolitan Life Insurance Co.

MetLife Inc. upsizes

MetLife Inc. priced an upsized $1 billion of 3.6% senior notes (A3/A-/A-) due 2024 on Monday with a spread of Treasuries plus 90 bps, according to a market source and an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.992 to yield 3.601%.

MetLife's 3.6% notes due 2024 traded slightly better at 89 bps bid, 87 bps offered in the secondary market, a trader said.

The bookrunners were BofA Merrill Lynch, Barclays, Deutsche Bank Securities, JPMorgan and Morgan Stanley.

The company plans to use proceeds from the offering for general corporate purposes, which may include the repayment of its $350 million of 5.5% senior notes due June 15, 2014 and the redemption of its $200 million of 5.875% senior notes due 2033.

The insurance and employee benefits company is based in New York City.

EBRD eyes sale

The European Bank for Reconstruction and Development announced price guidance on Monday for a planned $1 billion offering of five-year notes (Aaa/AAA/AAA) at mid-swaps plus 1 bp, according to a market source.

The bookrunners are Citigroup Global Markets Inc., Deutsche Bank Securities, HSBC Securities and Morgan Stanley.

The deal is pricing Tuesday.

The lender to banks, businesses and industries is based in London.

Nederlandse sets guidance

Nederlandse Waterschapsbank NV has announced a $500 million offering of four-year senior notes (Aaa/AA+/) to be priced on Tuesday, an informed source said.

The notes are guided in the mid-swaps plus 20 bps area.

The bookrunners are BNP Paribas Securities Corp., Citigroup Global Markets and TD Securities.

The financial services company for the public sector is based in the Hague, the Netherlands.

Bank/brokerage CDS rise

Investment-grade bank and brokerage CDS prices rose, according to a market source.

Bank of America Corp.'s CDS costs eased 2 bps to 65 bps bid, 68 bps offered. Citigroup Inc.'s CDS costs rose 1 bp to 74 bps bid, 77 bps offered. JPMorgan Chase & Co.'s CDS costs widened 2 bps to 58 bps bid, 61 bps offered. Wells Fargo & Co.'s CDS costs eased 1 bp to 36 bps bid, 39 bps offered.

Merrill Lynch's CDS costs rose 1 bp to 70 bps bid, 71 bps offered. Morgan Stanley's CDS costs eased 1 bp to 83 bps bid, 86 bps offered. Goldman Sachs Group, Inc.'s CDS costs widened 1 bp to 89 bps bid, 92 bps offered.

Paul Deckelman contributed to this review.

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