National Australia, Ford, Anglo American, Schneider Electric sell as tone holds

By Aleesia Forni and Andrea Heisinger

New York, Sept. 20 - The high-grade bond market was full with deals priced privately Thursday as National Australia Bank Ltd. and Anglo American Capital plc were among the issuers pricing bonds under Rule 144A and Regulation S.

National Australia sold an upsized $1.5 billion of bonds after adding a floating-rate tranche to its initial reopening of five-year notes due 2017.

London-based mining company Anglo American sold $1.35 billion of bonds due 2017 and 2022.

A crossover deal came from Ford Motor Credit Co. which was tapping the market for the second time since late July. The arm of the auto company sold $1 billion of 10-year notes.

France's Schneider Electric SA priced $800 million of 10-year notes.

Citigroup Inc. was in the market with a $500 million trade of five-year floating-rate notes.

A $250 million sale of mortgage bonds due 2023 came from System Energy Resources, Inc. after going overnight from Wednesday.

Bank Nederlandse Gemeenten sold an upsized $2.25 billion of five-year notes after the trade went overnight from Wednesday. The size was increased from $2 billion.

Another foreign issuer in the market was Landwirtschaftliche Rentenbank with a $250 million sale of five-year floating-rate notes.

The Province of Ontario sold $1.25 billion of seven-year notes at the wide end of talk after the sale went overnight.

The preferred stock market remained active as Ares Capital Corp. priced a deal. The specialty finance company sold an upsized $175 million of $25-par 10-year senior notes.

AG Mortgage Investment Trust Inc. priced $100 million of perpetual shares at $25 after the offering went overnight from Wednesday.

The primary has seen enough supply in the first four days of the week that some are hoping Friday is quiet.

"The market looked pretty good today, but I think tomorrow will be empty," a market source said late in the day.

"We had the Fed comments, but that didn't do much I don't think," the source added. "We kind of had our heads down all day."

The source was referring to comments made by the president of the Federal Reserve Bank of Minneapolis, Narayana Kocherlakota, who said the central bank should keep its key interest rate at near zero until jobless numbers fall.

The Markit CDX Series 18 North American Investment Grade index widened 11 bps from Wednesday's levels to a spread of 96 bps.

Schneider Electric's new issue firmed 2 basis points near the end of Thursday's session; the two-tranche deals from Anglo American were 8 bps to 10 bps tighter.

"Spreads leaked a couple [bps] wider in general," a trader said near the day's close.

NAB's two tranches

National Australia Bank priced $1.5 billion of new and reopened notes (Aa2/AA-/), a market source said.

The sale was increased to include a new five-year floating-rate note in addition to the initial reopening of 2% notes due 2017.

Those 2% five-year notes were reopened to add $1.25 billion with a spread of mid-swaps plus 72 bps, or Treasuries plus 78.9 bps.

Total issuance will be $2.5 billion including $1.25 billion which was originally priced on June 12 at 129 basis points over Treasuries.

A $250 million tranche of five-year floaters priced at par to yield Libor plus 72 bps.

The deal was priced via Rule 144A and Regulation S.

Citigroup Global Markets Inc., National Australia Bank and TD Securities USA Inc. were bookrunners.

The bank and financial services company is based in Melbourne.

Ford sells $1 billion

Ford Motor Credit was in the market with $1 billion of 4.25% 10-year notes (Baa3/BB+/BBB-) priced at 260 bps over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC were bookrunners.

Proceeds are being used for general corporate purposes.

Ford Motor Credit was last in the bond market with a $750 million offering of notes due 2016 on July 31.

The financing arm of Ford Motor Co. is based in Dearborn, Mich.

Schneider prices tight

Schneider Electric sold $800 million of 2.95%10-year notes (A3/A-/) to yield 120 bps over Treasuries, a syndicate source said.

The notes traded 2 bps tighter at 118 bps bid, 115 bps offered near the day's close, a trader said.

Pricing was in line with talk in the low 100 bps area, the source said.

The deal was done under Rule 144A and Regulation S.

Bookrunners were Barclays, BNP Paribas Securities Corp., J.P. Morgan Securities LLC and RBS Securities Inc.

The energy management company is based in Rueil-Malmaison, France.

Anglo American's $1.35 billion trade

Anglo American Capital priced $1.35 billion of notes (Baa1/BBB+/) in tranches due 2017 and 2022, a market source said.

A $750 million tranche of 2.625% five-year notes sold at a spread of 195 bps over Treasuries. The bonds were sold tighter than talk in the low 200 bps area, the source said.

There was also $600 million of 4.125% 10-year notes offered at 245 bps over Treasuries. The tranche was priced in line with guidance in the mid 200 bps area.

The five-year notes traded at 185 bps bid, 182 bps offered, while the 10-year tranche was quoted at 237 bps bid, 235 bps offered.

The notes were priced under Rule 144A and Regulation S.

Barclays, Goldman Sachs & Co. and UBS Securities LLC were bookrunners.

The financing arm of mining company Anglo American plc is based in London.

Citi's floaters

Citigroup sold $500 million of five-year floating-rate notes (Baa2/A-/A) at par to yield Libor plus 144 bps, according to an FWP filing with the Securities and Exchange Commission.

Citigroup Global Markets Inc. was bookrunner.

The financial services company is based in New York City.

System prices $250 million

System Energy Resources priced $250 million of 4.1% first mortgage bonds due 2023 (Baa1/BBB+/) to yield Treasuries plus 237.5 bps, an informed source said.

The deal was priced in the middle of talk in the Treasuries plus 210 bps to 250 bps range, which was given prior to the sale going overnight from Wednesday.

Bookrunners were Barclays, KeyBanc Capital Markets Inc., RBS Securities Inc. and Scotia Capital (USA) Inc.

Proceeds are being used to repay outstanding bonds and for general corporate purposes.

System Energy generates and sells nuclear power and is based in Jackson, Miss.

Ontario prices wide

The Province of Ontario sold $1.25 billion of 1.65% seven-year global notes (Aa2/AA-/) to yield mid-swaps plus 44 bps, or Treasuries plus 55.75 bps, a source away from the trade said.

The pricing level was at the wide end of talk.

The deal had gone overnight from Wednesday when the notes were talked in the range of mid-swaps plus 40 bps to 44 bps.

Bookrunners were Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc. and Scotia Capital USA Inc.

Ontario was last in the U.S. bond market with a $1 billion sale of 10-year notes on June 22.

Proceeds will be used for general provincial purposes.

Bank Nederlandse's five-year

Bank Nederlandse Gemeenten was in the market with an upsized $2.25 billion of 1.375% five-year notes (Aaa/AAA/) priced at mid-swaps plus 58 bps, or Treasuries plus 71.9 bps, a market source said.

The size of the trade was increased from $2 billion.

The notes were initially talked in the mid-swaps plus 60 basis points to 64 bps range. The sale went overnight, and guidance was revised to mid-swaps plus 60 bps area, which the notes were priced tight to.

The deal was done under Rule 144A and Regulation S.

Bookrunners were Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Nomura Securities.

The bank was last in the U.S. bond market with a $2.5 billion sale of three-year notes on March 14.

The issuer provides financing for publicly owned organizations and is based in The Hague, the Netherlands.

Rentenbank's floaters

Germany's Rentenbank priced $250 million of five-year floaters (Aaa/AAA/AAA) at par to yield Libor plus 8 bps, a market source said.

The floaters were priced in line with guidance.

Bookrunner was Deutsche Bank Securities Inc.

The German development agency for agribusiness is based in Frankfurt.

Ares Capital's $25 pars

Ares Capital priced $175 million of 5.875% 10-year senior notes (/BBB/BBB) at par of $25, a market source said.

The deal size was increased from $100 million.

The notes were sold in line with talk in the 5.625% to 6% coupon area.

Ares intends to apply to list the notes on the New York Stock Exchange.

Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC were bookrunners.

Proceeds are being used for general corporate purposes, which includes investing in portfolio companies in accordance with the company's investment objective.

The specialty finance company is based in Los Angeles.

AG Mortgage prices $100 million

AG Mortgage Investment Trust sold $100 million, or 4 million shares, of 8% $25-par series B cumulative redeemable perpetual preferreds, according to an FWP filing with the Securities and Exchange Commission.

The shares were priced in line with talk.

There is an overallotment option of 600,000 shares.

The New York-based real estate investment trust will apply to list the new securities on the New York Stock Exchange.

Proceeds will be used to enhance liquidity, to acquire additional credit investments and for general corporate purposes.

Stifel Nicolaus & Co. Inc., RBC Capital Markets LLC, Barclays and Deutsche Bank Securities Inc. were bookrunners.

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