Primary action calm; Wells Fargo, NY Life price; Legg Mason firms; Time Warner Cable tightens

By Cristal Cody and Aleesia Forni

Virginia Beach, Jan. 16 - Activity in the high-grade market slowed on Thursday as Legg Mason Inc., Wells Fargo & Co. and New York Life Global Funding priced new deals.

Wells Fargo sold the largest of the day's deals with a $1.5 billion issue of 3% seven-year notes.

The sale priced with a spread of 75 basis points over Treasuries, a market source said.

Legg Mason came to market to price $400 million of 5.625% 30-year senior notes with a spread of 195 bps over Treasuries.

Meanwhile, New York Life Global Funding priced an upsized $600 million of 1.125% three-year notes at Treasuries plus 40 bps, according to a market source.

The deal was doubled in size from $300 million.

"Everything looked really good today," a market source said. "Obviously a little quieter."

Despite the lesser activity, the source remarked that it was "still another strong session" for the high-grade primary.

All three of the trades priced at the tight end of talk, and both Legg Mason and NY Life saw their deals upsized from original thoughts.

At least two issuers are poised to bring new deals to Friday's session.

Inter-American Development Bank set price talk for its proposed $500 million of five-year floating-rate notes at Libor plus 4 bps, an informed source said.

The deal is expected to price Friday.

The bank also launched a $500 million offering of 30-year senior notes on Thursday with a spread of Treasuries plus 65 bps.

In other market action, Freddie Mac announced plans to price a benchmark issue of Reference Notes due Feb. 22, 2017 on Friday.

The lender also priced a $1 billion add-on to its existing 1.75% Reference Notes due 2019 on Thursday via an internet-based auction.

Spreads move 'a little wider'

High-grade bond spreads ended the day slightly weaker, according to market sources.

"If anything, they're a little wider, but not a lot," one source said.

The Markit CDX North American Investment Grade series 21 index eased 2 bps to a spread of 65 bps.

In the secondary market, Legg Mason's 5.625% bonds tightened nearly 10 bps on the offered side, according to a trader.

New York Life's 1.125% notes were not immediately active in the aftermarket.

"Not seeing any trades on it," a source said.

In other trading, Time Warner Cable Inc.'s existing 4% notes due 2021 are 9 bps better on the day, a trader said.

Time Warner Cable rejected Charter Communications Inc.'s offer on Monday to acquire the company for about $132.50 a share.

Wells Fargo prices tight

Wells Fargo priced on Thursday a $1.5 billion issue of 3% seven-year senior notes with a spread of 75 bps plus Treasuries, a market source said.

The notes (A2/A+/) were priced at 99.831 to yield 3.027%.

Pricing was at the tight end of the Treasuries plus 75 bps to 80 bps talk.

Wells Fargo Securities LLC was the sole bookrunner.

The San Francisco-based bank will use proceeds for general banking purposes.

Freddie Mac's Reference Notes

Freddie Mac priced a $1 billion add-on to its existing 1.75% Reference Notes due May 30, 2019 on Thursday at 98.999425 with a stop yield of 1.947%, according to a company release.

The reopening was sold via an internet-based auction.

Total issue size is now $4 billion.

The government-backed mortgage lender is based in McLean, Va.

NY Life doubles size

NY Life Global Funding priced an upsized $600 million of 1.125% three-year notes on Thursday at Treasuries plus 40 bps, according to a market source.

The deal was doubled in size from $300 million.

The notes (Aa1/AA+/) were priced at the tight end of talk under Rule 144A and Regulation S.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and J.P. Morgan Securities LLC ran the books.

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

Legg Mason new issue

Legg Mason priced an upsized $400 million of 5.625% senior notes due 2044 (Baa1/BBB/) on Thursday with a spread of 195 bps over Treasuries, according to a market source and an FWP filed with the Securities and Exchange Commission.

Pricing was at 98.435 to yield 5.735%.

In the secondary market, Legg Mason's 5.625% bonds tightened to 186 bps offered, a trader said.

The bookrunners were Citigroup Global Markets Inc. and JPMorgan.

Proceeds will be used to repay borrowings under the company's term loan facility maturing in 2017.

The asset management company is based in Baltimore.

IADB launches, talks deals

Inter-American Development Bank launched a $500 million offering of senior notes due 2044 at Treasuries plus 65 bps, according to an informed source.

The notes were talked in the Treasuries plus 68 bps area.

Deutsche Bank Securities Inc. and BofA Merrill Lynch are managing the sale.

The bank also set price talk for its planned $500 million of five-year floating-rate note at Libor plus 4 bps, an informed source said.

The deal is expected to price Friday.

Barclays, Goldman Sachs and RBC Capital Markets are the joint bookrunners.

The issuer provides financing for Latin American and Caribbean countries and is based in Washington, D.C.

Freddie Mac's benchmark issue

Freddie Mac intends to sell a benchmark issue of Reference Notes due Feb. 22, 2017 on Friday, according to a company release.

Barclays, Goldman Sachs and JPMorgan are the banks on the deal.

The government-backed mortgage lender is based in McLean, Va.

Time Warner Cable firms

Time Warner Cable's 4% notes due 2021 (Baa2/BBB/BBB) tightened to 226 bps bid, 229 bps offered, a trader said.

The notes traded on Wednesday at 235 bps bid, 225 bps offered.

Time Warner Cable sold $1 billion of the notes at a spread of 210 bps over Treasuries on Sept. 7, 2011.

The broadband communications company is based in New York City.

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