NWB prices add-on in week’s lone deal; Amazon.com firms; DirecTV unchanged

By Aleesia Forni and Cristal Cody

Virginia Beach, Dec. 18 – Nederlandse Waterschapsbank NV gave the primary its only sign of life this week, pricing a $500 million add-on to its existing notes due 2016 during the session on Thursday.

The lone new deal sold in line with price talk.

With activity in the primary market likely wrapped for the calendar year, sources are looking ahead to what is expected to be a busy January.

“It will be a big month,” one market source said, adding that the market could host “lots of M&A” activity.

Mergers and acquisitions financing deals have made up a large part of December’s new issuance tally, with multi-billion dollar deals pricing from Becton, Dickinson and Co. and Medtronic, Inc.

Investment-grade corporate bonds were stronger in secondary trading on Thursday, sources said.

The Markit CDX North American Investment Grade series 23 index tightened 5 basis points to a spread of 65 bps.

“It was fairly active this morning, and then it died down a bit,” a trader said.

Amazon.com, Inc.’s 3.8% senior notes due 2024 have tightened about 8 bps from a week ago, a trader said.

The 3.95% senior notes due 2024 brought earlier in the month from DirecTV Holdings LLC and DirecTV Financing Co. Inc. traded mostly flat.

NWB add-on

Nederlandse Waterschapsbank sold a $500 million tap of its existing 0.5% notes (Aaa/AA+/) due March 4, 2016 on Thursday at mid-swaps plus 1 bp, an informed source said.

The bookrunners were BofA Merrill Lynch, Credit Suisse Securities and J.P. Morgan Securities LLC.

The original $1 billion issue priced on Aug. 26, and a $500 million tap priced on Dec. 1.

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

Freddie passes

Freddie Mac announced on Thursday that it would forgo issuing Reference Notes on its Dec. 18 announcement date, according to a company news release.

The government-sponsored enterprise is based in McLean, Va.

Amazon firms

Amazon.com’s 3.8% notes due 2024 (Baa1/AA-/) headed out on Thursday better at 140 bps offered, a trader said.

The notes were quoted a week ago at 152 bps bid, 148 bps offered.

The company sold $1.25 billion of the 10-year notes at Treasuries plus 155 bps on Dec. 2.

The online retailer is based in Seattle.

DirecTV stable

DirecTV’s 3.95% notes due 2025 (Baa2/BBB/BBB-) traded mostly unchanged at 172 bps bid in the secondary market late afternoon, a trader said.

The notes were seen a week ago in the 173 bps bid, 169 bps offered area.

DirecTV Holdings and DirecTV Financing sold $1.2 billion of the notes on Dec. 2 at a spread of Treasuries plus 175 bps.

The digital entertainment company is based in El Segundo, Calif.

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