Sumitomo, World Bank do deals; Georgia Power upsizes; Anheuser-Busch InBev firms; IBM stronger

By Aleesia Forni and Cristal Cody

New York, March 2 – Sumitomo Mitsui Financial Group Inc., World Bank, eBay Inc. and Edison International Inc. continued the stream of issuers heading to the primary market this week.

“Things are still looking pretty good,” one market source said, as deals continue to be met with solid reception following the more than $42 billion of new high-grade paper that has entered the primary market this week.

Sumitomo and World Bank were each in the market Wednesday with multi-tranche $4 billion issues.

Georgia Power Co. upsized its new issue to $650 million. The two-part deal included a tranche of five-year senior notes and a 10-year green bond priced between 20 basis points and 25 bps inside initial price thoughts.

The five-year tranche saw an order book that was more than 3.5 times oversubscribed, a market source said, while the 10-year piece was more than six times oversubscribed.

Elsewhere in Wednesday primary market, Dominion Resources Inc. sold a $550 million remarketing of its junior subordinated notes and Fannie Mae sold a $2 billion two-year new issue.

Anheuser-Busch InBev Finance Inc.’s 3.65% senior notes due 2026 traded 4 bps better over the day.

International Business Machines Corp.’s 3.45% senior notes due 2026 firmed about 1 bp on Wednesday but are trading more than 20 bps tighter than where the issue came in February.

Cisco Systems, Inc.’s 2.95% senior notes due 2026 that priced in February tightened 2 bps in the secondary market.

Sumitomo sells $4 billion

Tokyo’s Sumitomo was in the market with a $4 billion three-part offering of senior notes (A1/A-) on Wednesday, according to an informed source.

The issuance included $1.75 billion of 2.934% five-year notes sold at par to yield Treasuries plus 160 bps.

The notes sold at the tight side of the Treasuries plus 165 bps area guidance following talk in the range of Treasuries plus 180 bps to 185 bps.

A $750 million five-year floater sold at par to yield Libor plus 168 bps after being talked at the Libor equivalent to the fixed-rate tranche.

And $1.5 billion of 3.784% 10-year bonds sold at par, or Treasuries plus 195 bps.

Guidance was in the Treasuries plus 200 bps area, and the tranche was initially talked in the range of Treasuries plus 215 bps to 220 bps.

Goldman Sachs & Co., SMBC Nikko, Citigroup Global Markets Inc., Barclays, BofA Merrill Lynch and J.P. Morgan Securities LLC are the bookrunners.

World Bank deal

International Bank for Reconstruction and Development (World Bank) sold $4 billion of 1.625% global notes (Aaa/AAA) on Wednesday at Treasuries plus 30.62 bps, according to a bank news release.

Pricing was at 99.847 to yield 1.657%.

Bookrunners were BMO Capital Markets, BNP Paribas Securities Corp. and JPMorgan.

The order book for World Bank’s issue topped $5.1 billion with more than 100 accounts participating.

Around 38% of the orders came from Asia, 25% from Europe, 21% from the United States, 12% from Japan and 4% from Canada.

Central bank and official institutions accounted for 58% of the orders, 22% were banks and corporates and 20% were asset managers, insurance and pension funds.

World Bank is based in Washington, D.C.

eBay two-parter

eBay sold $1.5 billion of senior notes in two tranches on Wednesday, according to a market source and an FWP filed with the Securities and Exchange Commission.

The company issued $750 million of 2.5% two-year notes at 99.897 to yield 2.553%, or Treasuries plus 170 bps.

And $750 million of 3.8% six-year notes sold with a 250 bps spread over Treasuries. Pricing was at 99.772 to yield 3.843%.

Both tranches sold at the tight side of guidance.

Bookrunners were BofA Merrill Lynch, JPMorgan, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Citigroup and Deutsche Bank Securities Inc.

Proceeds will be used for general corporate purposes, which may include capital expenditures, share repurchases, repayment of debt and possible acquisitions.

eBay is a San Jose, Calif.-based commerce company.

Georgia Power upsizes

The session also saw Georgia Power sell an upsized $650 million of notes (A3/A-/A+) in two parts on Wednesday, according to a market source and two FWP filings with the SEC.

A $325 million tranche of 2.4% five-year notes sold at 99.795 to yield 2.443%, or Treasuries plus 110 bps.

Price guidance was in the Treasuries plus 115 bps area, and the notes were initially talked in the Treasuries plus 130 bps area.

There was $325 million of 3.25% 10-year green bonds sold at 99.624 to yield 3.294% with a spread of 145 bps over Treasuries.

The notes sold at the tight side of the Treasuries plus 150 bps area guidance, having tightened from the Treasuries plus 170 bps area.

Bookrunners were BofA Merrill Lynch, JPMorgan, Scotia Capital, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc.

Proceeds from the five-year notes will be used to repay the company’s $250 million of series 2013B floating-rate senior notes due March 15, 2016, to repay short-term debt and for general corporate purposes.

The company plans to use proceeds from the 10-year green bonds to fund eligible green projects or payments, including financing or investing in solar power generation facilities and electric vehicle charging infrastructure or making payments under the company’s power purchase agreements served by solar or wind power generation facilities.

The electric utility is based in Atlanta.

Dominion remarketing

Dominion Resources priced a remarketing of its $550 million 2013 series A junior subordinated notes due April 1, 2021 on Wednesday at Treasuries plus 275 bps, according to an FWP filed with the SEC.

The 4.104% notes (Baa3/BBB/BBB) sold at 100.07 to yield 4.089%.

The notes were originally issued as components of its 2013 series A equity units.

BofA Merrill Lynch, JPMorgan and Wells Fargo are the remarketing agents.

The energy producer and transporter is based in Richmond, Va.

Fannie Mae Benchmark Notes

Meantime, Fannie Mae priced $2 billion of 0.875% two-year Benchmark Notes on Wednesday at Treasuries plus 12 bps, according a company news release.

Pricing was at 99.8 to yield 0.973%.

Citigroup, JPMorgan and TD Securities USA are the joint lead managers.

Fannie Mae will apply to list the securities on the EuroMTF market of the Luxembourg Stock Exchange.

The mortgage credit provider is based in Washington, D.C.

Edison prices

Edison International was in the market on Wednesday with a $400 million offering of 2.95% seven-year senior notes priced at Treasuries plus 130 bps, according to a market source and an FWP filed with the SEC.

The notes (A3/BBB/A-) sold at 99.956 to yield 2.957%.

Pricing came at the tight end of guidance set in the Treasuries plus 135 bps area. Initial talk was in the range of 150 bps to 155 bps over Treasuries.

Proceeds will be used to repay commercial paper borrowings and for general corporate purposes.

Barclays, Citigroup and U.S. Bancorp are the bookrunners.

Edison International is a Rosemead, Calif., energy company.

Anheuser-Busch firms

Anheuser-Busch’s 3.65% notes due 2026 firmed 4 bps to 151 bps bid on Wednesday, a market source said.

Anheuser-Busch sold $11 billion of the notes (A2/A-) on Jan. 13 at a spread of 160 bps plus Treasuries.

The brewery is based in Leuven, Belgium.

IBM modestly better

International Business Machines’ 3.45% notes due 2026 firmed 1 bp over the day to 149 bps bid, according to a market source.

The company sold $1.35 billion of the notes (Aa3/A-/A+) on Feb. 16 at a spread of 170 bps over Treasuries.

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

Cisco tightens

Cisco Systems’ 2.95% notes due 2026 headed out 2 bps better over the session at 103 bps bid, according to a market source.

The company sold $750 million of the notes (A1/AA-) on Feb. 22 at 120 bps over Treasuries.

San Jose, Calif.-based Cisco produces internet protocol-based networking and other communications and information technology products.

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