CIBC prices $450 million add-on; Smuckers, G.E. Capital firm in trading; Time Warner mixed

By Cristal Cody

Prospect News, Oct. 14 - Two foreign issuers brought deals in the U.S. investment-grade market on Friday while domestic issuers took a break.

The Canadian Imperial Bank of Commerce sold $450 million in a reopening of its 2.35% senior notes due 2015 and Oesterreichische Kontrollbank AG priced $100 million of two-year floating-rate guaranteed global notes.

Bonds were seen better overall in the secondary market on Friday.

J.M. Smucker Co.'s notes firmed more than 10 basis points, traders said.

Time Warner, Inc.'s notes were mixed in trading, with the short-dated notes wider and the long bonds tighter on Friday.

Kohl's Corp.'s first issue in four years tightened in trading.

Bank and financial paper traded stronger on the day, including General Electric Capital Corp.'s new notes.

"Financials are 5 [bps] to 10 [bps] better," a trader said. "Overall positive tone."

The Markit CDX Series 17 North American Investment Grade index ended flat at a spread of 130 bps on Friday.

Overall trading volume was about $11 billion.

Treasuries were mixed and, on the long end of the curve, lower. The 10-year note yield rose 7 bps to 2.25%, while the 30-year bond yield increased 8 bps to 3.23%.

CIBC sells $450 million

The Canadian Imperial Bank of Commerce (Aa2/A+/AA-) sold $450 million in a reopening of its 2.35% senior notes due Dec. 11, 2015 at 100.222 to yield 2.293% on Friday, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at a spread of 120 basis points over Treasuries.

Barclays Capital Inc. was the bookrunner.

Proceeds will be added to the bank's funds and will be used for general corporate purposes.

The issue originally priced on Dec. 6, 2010 at a spread of 85 bps over Treasuries.

Kontrollbank sells floaters

Oesterreichische Kontrollbank (Aaa/AAA/) sold $100 million of two-year floating-rate guaranteed global notes at par on Friday, according to a FWP filing with the SEC.

The notes due Oct. 21, 2013 priced at one-month Libor plus 15 bps.

The notes are guaranteed by the Republic of Austria.

Barclays was the lead manager.

Vienna, Austria-based Oesterreichische Kontrollbank is a specialized institution owned by Austrian commercial banks to offer services such as export credit guarantees.

J.M. Smucker stronger

J.M. Smucker's 3.5% senior notes due 2021 traded tighter at 125 bps bid, 122 bps offered and were seen tighter going out at 122 bps bid, 121 bps offered, traders said.

The company priced $750 million of the notes (A3/BBB+/) on Thursday at a spread of Treasuries plus 135 bps.

The food products company is based in Orrville, Ohio.

Time Warner mixed

The two tranches that Time Warner sold in a $1 billion offering of notes and debentures (Baa2/BBB/BBB) on Wednesday were mixed in the secondary market on Friday, a trader said.

The 4% senior notes due 2022 widened to 213 bps bid, 208 bps offered. The notes priced at a spread of Treasuries plus 200 bps.

The $500 million tranche of 5.375% senior debentures due 2041, which priced at 225 bps over Treasuries, firmed to 185 bps bid, 180 bps offered.

The media and entertainment company is based in New York.

Kohl's firms

Kohl's new issue firmed to 179 bps bid, 176 bps offered on Friday, a trader said.

The company sold $650 million of 4% senior notes due 2021 (Baa1/BBB+/BBB+) to yield 183 bps over Treasuries on Wednesday.

The department store chain is based in Menomonee Falls, Wis.

GE Capital tightens

General Electric Capital's debt firmed in secondary trading on Friday.

The company sold $3 billion of notes (Aa2/AA+) in two tranches on Wednesday.

The $1.25 billion of 3.35% five-year notes due 2016 firmed to 215 bps bid, 210 bps offered from the issue price of Treasuries plus 222 bps, a trader said.

The second tranche, a $1.75 billion offering of 4.65% 10-year notes priced at a spread of Treasuries plus 247 bps, firmed to 245 bps bid, 240 bps offered on Friday.

The funding arm of General Electric Co. is based in Fairfield, Conn.

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