Ford Motor Credit, Dexia price; HollyFrontier downsizes; Anadarko eases; credit spreads widen

By Aleesia Forni and Cristal Cody

New York, March 15 – Ford Motor Credit Co. LLC and Dexia Credit Local sold bonds during a risk-off session for the market as the Federal Reserve kicked off its two-day policy meeting.

Dexia Credit entered the primary with a $1 billion two-year floater.

And Ford Motor Credit issued $1.75 billion of five-year notes around 15 basis points inside initial talk after scrapping plans for an additional floating-rate tranche.

HollyFrontier Corp. downsized its offering to $250 million from $500 million and issued the 10-year bonds at the widest side of initial price thoughts.

So far, the week has seen around $10.25 billion of issuance, nearing the halfway point towards what was predicted to be around a $20 billion to $25 billion week.

In the secondary market on Tuesday, Anadarko Petroleum Corp.’s senior notes (Baa1/BBB/BBB) lost some gains over the session.

“Didn’t seem much flow,” a trader said of the company’s bonds.

Exxon Mobil Corp.’s 3.043% notes due 2026 traded about 4 bps weaker.

Cisco Systems, Inc.’s 2.95% senior notes due 2026 eased 5 bps in the secondary market.

Credit spreads continued to widen ahead of the Federal Reserve’s policy statement on Wednesday.

The Markit CDX North American Investment Grade index ended the day 4 bps weaker at a spread of 89 bps.

Ford sells $1.75 billion

Ford Motor Credit priced $1.75 billion of 3.336% five-year senior notes (Baa2/BBB/BBB-) at par, or Treasuries plus 185 bps, on Tuesday, according to a market source and an FWP filed with the Securities and Exchange Commission.

The notes were guided in the Treasuries plus 187.5 bps area and initially talked in the 200 bps area over Treasuries.

Plans for a floating-rate tranche were dropped prior to the deal’s launch.

Bookrunners are BofA Merrill Lynch, Bradesco BBI, Commerzbank, HSBC Securities, RBC Capital Markets LLC and Societe Generale.

Proceeds will be added to the company’s general funds and will be available for the purchase of receivables, for loans and for use in connection with the retirement of debt.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based automaker Ford Motor Co.

Dexia Credit floaters

Dexia Credit Local priced $1 billion of two-year floating-rate notes (Aa2/AAA) at par to yield Libor plus 60 bps on Tuesday, according to an informed source.

The notes sold in line with guidance.

Deutsche Bank Securities Inc. and BofA Merrill Lynch were the joint bookrunners for the Rule 144A and Regulation S deal.

The regional bank, focusing on sustainable development, is based in Brussels, Belgium.

HollyFrontier downsizes

HollyFrontier, meantime, sold a downsized $250 million issue of 5.875% 10-year senior notes (Baa3/BBB-) on Tuesday at Treasuries plus 400 bps, according to an informed source.

Pricing was at 99.326 to yield 5.965%.

The notes were originally sized at $500 million and talked at Treasuries plus 387.5 bps to 400 bps. Price talk was later revised to Treasuries plus 400 bps.

BofA Merrill Lynch, Citigroup Global Markets Inc., MUFG and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used for general corporate purposes.

HollyFrontier is a petroleum refiner based in Dallas.

Newell acquisition financing

In other primary happenings, Newell Rubbermaid Inc. announced a six-tranche offering of senior notes to fund its acquisition of Jarden Corp., according to a 424B5 filed with the SEC.

The offering will include tranches due 2019, 2021, 2023, 2026, 2036 and 2046.

The notes will feature a change-of-control put at 101%.

Goldman Sachs & Co., Citigroup, J.P. Morgan Securities LLC and RBC are the bookrunners.

Proceeds will be used to finance the cash consideration portion of the acquisition and to refinance some outstanding Jarden debt.

Jarden is a Boca Raton, Fla.-based consumer products company.

Newell Rubbermaid is a consumer and commercial products maker based in Atlanta.

Anadarko better than pricing

Anadarko Petroleum’s 5.55% notes due 2026 traded at 359 bps offered late afternoon on Tuesday, a trader said.

The company’s notes were seen at the start of the day at 342 bps offered after tightening in aftermarket trading on Monday to 346 bps bid.

Anadarko Petroleum sold $1.1 billion of the bonds on Monday as part of a $3 billion three-tranche offering at a spread of Treasuries plus 362.5 bps.

The independent oil exploration and production company is based in the Woodlands, Texas.

Exxon Mobil softens

Exxon Mobil’s 3.043% notes due 2026 were offered going out at 102 bps, about 4 bps weaker over the day, according to market sources.

The company sold $2.5 billion of the notes (Aaa/AAA) on Feb. 29 at a spread of 130 bps plus Treasuries.

Exxon Mobil is an energy company based in Irving, Texas.

Cisco eases

Cisco Systems’ 2.95% notes due 2026 traded 5 bps weaker on Tuesday at 78 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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