Coca-Cola, Altera, LabCorp continue primary frenzy; Coca-Cola, LabCorp trade flat to better

By Cristal Cody and Aleesia Forni

Virginia Beach, Oct. 29 - Another packed primary market on Tuesday saw new deals from investment-grade names including Coca-Cola Co., Altera Corp. and Laboratory Corp. of America Holdings.

High-grade issuers priced more than $9.8 billion during the session, bringing the week's total to $15.6 billion so far.

Coca-Cola brought the day's largest deal, selling a five-tranche offering of senior notes.

The deal included $500 million of three-year floating-rate notes priced at Libor plus 10 basis points and $500 million of three-year 0.75% notes priced at Treasuries plus 22 bps.

A $1.25 billion tranche of 1.65% five-year notes sold at Treasuries plus 42 bps, while a $1.25 billion tranche of 2.45% seven-year notes sold at 60 bps over Treasuries.

There was also $1.5 billion of 3.2% notes due 2023 priced at Treasuries plus 70 bps.

In a deal that was announced on Monday, Altera priced $1 billion of senior notes in two parts on Tuesday.

A $600 million part of five-year notes sold at Treasuries plus 135 bps.

The company also priced $400 million of 4.1% 10-year notes to yield Treasuries plus 175 bps.

The primary also saw LabCorp price $700 million of senior notes in a two-part deal.

The company sold $400 million of 2.5% notes due 2018 with a spread of 125 bps over Treasuries.

A $300 million tranche of 4% notes due 2023 priced at 165 bps over Treasuries.

In addition, a new $600 million deal was priced by Canadian National Railway Co.

The company priced $350 million of floaters due 2015 at par to yield Libor plus 20 bps, and $250 million of 4.5% notes due 2043 sold at Treasuries plus 95 bps.

Meanwhile, National Rural Utilities Cooperative Finance Corp. hit the market on Tuesday, selling $400 million of 3.4% collateral trust bonds with a spread of Treasuries plus 90 bps.

In other primary action, Oesterreichische Kontrollbank AG priced $1 billion of 0.75% notes due 2016 at Treasuries plus 19.9 bps.

International Finance Corp. also hit Tuesday's primary, selling a $300 million add-on to its floating-rate notes due 2016 at par to yield one-month Libor plus 2 bps.

The session also saw Toronto-Dominion Bank price an add-on to its existing 2.625% series A senior medium-term notes due Sept. 10, 2018, though full details were not available at press time.

The pace of issuance is expected to continue for the remainder of the week, with issuance already in line with predictions of a $15 billion to $20 billion week.

However, the market "could see a pause" on Wednesday due to the conclusion of the Federal Open Market Committee meetings, one syndicate source said.

High-grade bonds traded about 1 bp to 2 bps better in general over the day, according to market sources.

The Markit CDX North American Investment Grade series 21 index firmed 1 bp to a spread of 71 bps.

In the secondary market, Coca-Cola's notes traded flat to about 3 bps better across the curve, a trader said.

LabCorp's new five-year notes headed out 2 bps tighter, while the 10-year notes traded wrapped around issuance, a trader said.

Canadian National Railway's long bonds firmed 1 bp in late afternoon trading.

Coca-Cola prices tight

The day's largest new issue came from Coca-Cola, which priced a five-part sale of senior notes (Aa3/AA-/A+), an informed source said.

A $500 million three-year floating-rate tranche of notes was priced to yield Libor plus 10 bps, and a $500 million tranche of three-year 0.75% notes sold with a spread of Treasuries plus 22 bps.

The company also brought $1.25 billion of 1.65% senior notes due 2018 at Treasuries plus 42 bps.

There was $1.25 billion of 2.45% notes due 2020 priced with a spread of 60 bps over Treasuries.

Finally, $1.5 billion of 3.2% 10-year notes sold at Treasuries plus 70 bps.

All fixed-rate tranches were priced tight of guidance.

In the secondary market, Coca-Cola's 1.65% notes due 2018 traded flat at 42 bps bid, 40 bps offered, a trader said late in the day.

The tranche of 3.2% notes due 2023 firmed to 67 bps bid, 65 bps offered.

BofA Merrill Lynch, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds will be used to fund the repayment and redemption of outstanding 0.75% notes due 2013, floating-rate notes due 2014 and 3.625% notes due 2014. Note proceeds will also be used to pay related fees and expenses from the redemptions and for general corporate purposes.

The Atlanta-based beverage company was last in the U.S. bond market with a $2.5 billion sale in three maturities on Feb. 28.

OKeB new issue

Oesterreichische Kontrollbank priced $1 billion of 0.75% three-year notes (Aaa/AA+/) at Treasuries plus 19.9 bps, according to an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.936 to yield 0.771%.

The notes are guaranteed by the Republic of Austria.

Bookrunners were Barclays, BNP Paribas Securities Corp. and Deutsche Bank AG, London Branch.

The export and financial services company for Austrian businesses is based in Vienna.

LabCorp hits primary

Also on Tuesday, LabCorp sold $700 million of senior notes (Baa2/BBB/), according to a market source and an FWP filing with the SEC.

The deal included $400 million of 2.5% five-year notes with a spread of Treasuries plus 125 bps.

Pricing was at 99.916 to yield 2.518%.

There was also a $300 million tranche of 4% 10-year notes priced at 165 bps over Treasuries, or 98.726, to yield 4.157%.

Both tranches sold at the tight end of talk.

LabCorp's 2.5% senior notes due 2018 firmed to 123 bps bid, 120 bps offered in secondary trading late afternoon, according to a trader.

The tranche of 4% notes due 2023 traded flat at 165 bps bid, 162 bps offered.

Barclays, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC and Goldman Sachs & Co. were the joint bookrunners.

Proceeds will be used to repay all or a portion of outstanding borrowings under a revolving credit agreement and for general corporate purposes.

The independent clinical laboratory company is based in Burlington, N.C.

Canadian National two-parter

Canadian National Railway came to Tuesday's market with a two-part sale of notes (A3/A-/A) in fixed- and floating-rate tranches, according to an FWP filing with the SEC.

The company sold $350 million of floating-rate notes due Nov. 6, 2015 at par to yield Libor plus 20 bps.

There was also $250 million of 4.5% 30-year notes sold with a spread of Treasuries plus 95 bps, or 98.222, to yield 4.61%.

In the secondary market, Canadian National Railway's 4.5% notes due 2043 firmed to 94 bps bid, 92 bps offered, a trader said.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch were the joint bookrunners.

Proceeds will be used for general corporate purposes.

The railway transportation company is based in Montreal.

National Rural sells $400 million

Meanwhile, National Rural Utilities was in Tuesday's market with a $400 million sale of 3.4% 10-year collateral trust bonds (A1/A+/) at Treasuries plus 90 bps, according to an FWP filing with the SEC.

Pricing was at 99.923 to yield 3.409%. There is a make-whole call at Treasuries plus 15 bps until Aug. 15, 2023, with a par call after that date.

KeyBank Capital Markets Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc., JPMorgan and RBS Securities Inc. were the bookrunners.

Proceeds will be used for general corporate purposes, including repayment of short-term debt, primarily consisting of commercial paper.

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

IFC taps floaters

Tuesday also saw International Finance price a $300 million tap of its floating-rate notes (Aaa/AAA/AAA) due Aug. 1, 2016 at par to yield one-month Libor plus 2 bps, a market source said.

Bookrunners were Barclays, Goldman Sachs and TD Securities (USA) LLC.

The original $500 million issue priced on July 23.

The World Bank member and lender to the private sector in developing countries is based in Washington, D.C.

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