Standard Chartered, National Bank of Canada price; Microsoft, Apple firm; GE Capital stable

By Aleesia Forni and Cristal Cody

Virginia Beach, April 13 – New-issue activity was measured to open the week on Monday, with issuers pricing $3.95 billion of bonds.

The session saw Standard Chartered plc offer $3 billion of senior notes in four parts and National Bank of Canada sell a $750 million covered bond.

Standard Chartered sold all tranches of its new deal at the tight end of guidance, amassing an order book of more than $7.5 billion.

Meanwhile, National Bank of Canada priced its three-year offering tight of initial price talk.

There was also a $200 million floating-rate note priced by National Rural Utilities Cooperative Finance Corp. during the session.

Sources are predicted a spike in activity in the coming sessions, with the bulk of this week’s new issuance coming from the financial sector.

Around $15 billion of supply is predicted for the week.

“Fairly light calendar,” one market source noted.

Investment-grade bonds were mixed over the day, according to market sources.

Microsoft Corp.’s 2.7% notes due 2025 firmed 2 basis points.

Apple Inc.’s 2.5% notes due 2025 traded 2 bps better over the session.

General Electric Capital Corp.’s bonds held onto gains from Friday but were mostly unchanged.

General Electric Co.’s bonds were flat in secondary trading.

The three-month Libor yield eased 1 bp to 28 bps on Monday.

The Markit CDX North American Investment Grade series 23 index eased less than 1 bp to a spread of 61 bps.

Standard Chartered four-parter

Standard Chartered sold a $3 billion four-tranche offering of senior notes (A2/A-/AA-) on Monday, according to a market source.

The sale included a $250 million three-year floating-rate note priced at par to yield Libor plus 64 bps.

Guidance was set at the Libor equivalent to the three-year fixed-rate notes.

A second tranche was $750 million of 1.7% three-year notes priced at 99.889 to yield 1.738%, or Treasuries plus 85 bps.

The notes were guided at the 90 bps area over Treasuries after having tightened from initial talk in the range of Treasuries plus 90 bps to 95 bps.

There was also a $1.25 billion 2.25% five-year note sold at 99.897 to yield 2.272%, or Treasuries plus 90 bps.

Pricing was at the tight end of the Treasuries plus 95 bps area guidance. Initial talk was set in the 100 bps area over Treasuries.

A $750 million tranche of 3.2% 10-year notes priced with a spread of Treasuries plus 130 bps. Pricing was at 99.728 to yield 3.232%.

Guidance was in the 135 bps area over Treasuries, which tightened from initial talk in the area of Treasuries plus 140 bps.

Standard Chartered, BofA Merrill Lynch, BNP Paribas Securities Corp. and Deutsche Bank Securities Inc. were the joint bookrunners.

The bank and financial services company is based in London.

National Bank covered bond

National Bank of Canada priced on Monday a $750 million issue of 1.4% three-year covered bonds (Aaa//AAA) at mid-swaps plus 31 bps, according to an informed source.

The notes sold at the tight end of guidance set in the mid-swaps plus 32 bps area.

Pricing was at 99.944 to yield 1.419%.

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

The bookrunners were BNP Paribas Securities, Citigroup Global Markets Inc. and National Bank Financial.

National Bank of Canada is a financial services company based in Montreal.

National Rural floaters

National Rural Utilities Cooperative Finance priced $200 million of floating-rate medium-term notes, series D, due April 16, 2018 at par to yield Libor plus 35 bps, according to an FWP filing with the Securities and Exchange Commission.

KeyBanc Capital Markets Inc. and RBC Capital Markets LLC were the bookrunners.

The market lender for electric cooperatives is based in Herndon, Va.

Microsoft improves

Microsoft’s 2.7% notes due 2025 firmed 2 bps to 71 bps bid on Monday, a market source said.

Microsoft sold $2.25 billion of the notes (Aaa/AAA/) on Feb. 9 at Treasuries plus 75 bps.

The computer software company is based in Redmond, Wash.

Apple firms

Apple’s 2.5% notes due 2025 traded 2 bps better at 80 bps bid, according to a market source.

Apple sold $1.5 billion of the notes (Aa1/AA+/) on Feb. 2 at Treasuries plus 85 bps.

The computer and mobile communications device company is based in Cupertino, Calif.

GE Capital stable

General Electric Capital’s 2.2% notes due 2020 were unchanged at 44 bps bid on Monday, according to a market source.

The company sold $2 billion of the notes on Jan. 6 at Treasuries plus 75 bps.

GE Capital’s 3.45% notes due 2024 were flat at 68 bps bid, the source said.

GE Capital sold $1 billion of the notes on May 12, 2014 (A1/AA+/) at Treasuries plus 85 bps.

General Electric Capital’s bonds tightened 10 bps on Friday after GE announced plans to sell off most of the financial products and services subsidiary’s assets to focus on core businesses.

General Electric Capital is based in Norwalk, Conn.

General Electric stable

General Electric’s 5.25% global notes due 2017 were unchanged from Friday at 63 bps bid, a source said.

GE sold $4 billion of the notes on Nov. 29, 2007 at a spread of Treasuries plus 140 bps.

The infrastructure and financial services company is based in Fairfield, Conn.

Bank/broker CDS costs flat to lower

Investment-grade bank and brokerage CDS prices were flat to lower on Monday, according to a market source.

Bank of America Corp.’s CDS costs were unchanged at 62 bps bid, 65 bps offered. Citigroup Inc.’s CDS costs were also flat at 72 bps bid, 75 bps offered. JPMorgan Chase & Co.’s CDS costs remained at 71 bps bid, 64 bps offered. Wells Fargo & Co.’s CDS costs were unchanged at 40 bps bid, 43 bps offered.

Merrill Lynch’s CDS costs were unchanged at 65 bps bid, 70 bps offered. Morgan Stanley’s CDS costs were down 1 bp to 71 bps bid, 74 bps offered. Goldman Sachs Group, Inc.’s CDS costs were flat at 84 bps bid, 87 bps offered.

Stephanie N. Rotondo contributed to this review.

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