State Street, Ingram, NY Life price amid volatility; State Street firms; spreads ease

By Aleesia Forni and Cristal Cody

Virginia Beach, Dec. 10 – State Street Corp., Ingram Micro Inc., New York Life Global Funding and United Parcel Service, Inc. braved a rocky session for investment-grade bonds, bringing roughly $2.24 billion of new issuance to the primary.

“Another weaker session with increased volatility,” a market source said, as crude oil prices reached five-year lows during the trading day on Wednesday.

In primary happenings, State Street came to market with a $1 billion offering of notes priced on top of talk.

The deal attracted an orderbook that was nearly two times oversubscribed, a source noted.

There was also an upsized $500 million offering of notes priced by Ingram Micro at the tight end of talk.

New York Life sold $650 million of three-year notes in two tranches, while UPS priced roughly $90 million of 50-year floating-rate notes.

The investment-grade primary has seen $5.99 billion of new issuance price so far this week.

The market still has some ground to cover in order to reach what was predicted to be around a $15 billion week.

Investment-grade credit spreads weakened over the day, while bonds were mixed, market sources said.

The Markit CDX North American Investment Grade series 23 index widened 3 basis points to a spread of 68 bps on Wednesday.

Canadian high-grade corporate bond issuers have stayed on the sidelines over the past three sessions, according to market sources.

“Given the volatility in the market, it takes a certain degree of bravery to come right now,” one source said. “There might be some benefit because Treasuries and the Canada bond yield are low, but the markets are skittish.”

In new issue secondary trading, State Street’s 3.3% notes due 2024 firmed 1 bp, a trader said.

Ingram Micro’s 4.95% notes due 2024 were wrapped around issuance as the session closed, a trader said.

New York Life Global Funding’s new 1.45% notes due 2017 eased 2 bps in the secondary market, a trader said.

State Street brings $1 billion

State Street priced $1 billion of 3.3% 10-year senior notes (A1/A+/AA-) on Wednesday with a spread of Treasuries plus 115 basis points, according to an informed source.

The notes sold on top of talk, which was set at the tight end of earlier guidance.

Pricing was at 99.898 to yield 3.312%.

Goldman Sachs & Co., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the joint bookrunners.

The company plans to use the proceeds from the offering for general corporate purposes.

State Street’s 3.3% notes due 2024 headed out slightly better at 114 bps bid, 112 bps offered in the secondary market, a trader said.

State Street is a Boston-based financial holding company.

NY Life two-parter

The primary also saw New York Life Global Funding sell $650 million of three-year notes (Aaa/AA+/) in fixed- and floating-rate tranches, a market source said.

There was $250 million of three-year floater priced at par to yield Libor plus 28 bps and $400 million of 1.45% notes due 2017 priced at 99.886 to yield 1.489%, or Treasuries plus 50 bps.

The notes sold in line with talk.

The sale was done via Rule 144A and Regulation S.

Bookrunners were Barclays, Citigroup Global Markets Inc. and Deutsche Bank Securities.

New York Life Global Funding’s 1.45% notes due 2017 were quoted in aftermarket trading wider at 52 bps bid, according to a trader.

The unit of mutual insurance company New York Life Insurance Co. is based in New York.

Ingram Micro upsizes

Also on Wednesday, Ingram Micro sold an upsized $500 million of 4.95% senior notes (Baa3/BBB-/BBB) due 2024 at Treasuries plus 280 bps, according to an FWP filed with the Securities and Exchange Commission.

The notes sold tight of guidance.

Pricing was at 99.649 to yield 4.995%.

BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds will be used to repay borrowings under the company’s revolving trade accounts receivable-backed financing program in North America and any remaining amount for working capital, investments, acquisitions and capital expenditures. Additional proceeds may be used for general corporate purposes.

In the secondary market, Ingram Micro’s 4.95% notes due 2024 traded mostly unchanged at 280 bps bid, 275 bps offered, according to a trader.

The global information technology wholesale distributor is based in Santa Ana, Calif.

UPS sells floaters

United Parcel Service sold $90,343,000 of floating-rate senior notes (Aa3/A+/) due 2064 on Wednesday at par to yield Libor minus 30 bps, according to an FWP filing with the SEC.

Bookrunners were UBS Securities LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley and Wells Fargo Securities LLC.

Proceeds will be used for general corporate purposes.

The package delivery and supply chain management company is based in Atlanta.

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