Bank of America prices 10-years; Nasdaq deal on tap; C.R. Bard, Oracle firm in trading

By Andrea Heisinger and Cristal Cody

New York, Dec. 16 - Bank of America Corp. was about the only one selling in the high-grade debt market on Thursday as Nasdaq OMX Group Inc. queued up a deal.

Bank of America's $1.5 billion sale of 10-year notes had a quick turnaround and was priced soon after it was announced. The notes were sold in line with talk.

In the pipeline is an offering from exchange group Nasdaq. The company is planning to sell $370 million of notes to fund a stock repurchase.

The Nasdaq deal could be the only new offering for Friday as issuance winds down.

"I'm not seeing much ahead," a source said.

The Bank of America deal wasn't much of a surprise, the source said. "They haven't issued in a while. [They were] probably trying to take advantage of rates."

The drop in new deals could be a trend into the coming week.

"I would think we're going to see something Monday, but then not too much," a syndicate source said late in the day.

In the secondary market, Bank of America's new notes firmed 7 bps to 10 bps, according to sources.

C.R. Bard, Inc.'s two tranches sold the previous day were stronger in the secondary market on Thursday, sources said.

Also in trading, Oracle Corp.'s high-grade debt tightened on the company's higher second-quarter earnings, a trader said.

Corporate bonds generically were a "couple of basis points better," a source said.

Overall, though, most traders say the week is winding down ahead of the weekend and the holidays.

"Very slow today," a trader said.

Overall investment-grade Trace volume was flat at about $12.4 billion, according to a market source.

The Markit CDX Series 14 North American investment-grade index firmed 1 basis point to a spread of 86 bps, according to Markit Group Ltd.

Treasuries bounced back slightly on mixed economic data and the Federal Reserve's purchase of $6.78 billion in bonds.

The yield on the 10-year note fell to 3.42% from 3.54%. The 30-year bond yield fell 6 bps to 4.54%.

BofA prices at talk

Bank of America has priced $1.5 billion of 5.875% 10-year notes (A2/A/A+) at a spread of 250 bps over Treasuries, said a market source away from the deal.

The notes were sold in line with talk in the 250 bps area. On a coupon basis, the notes priced slightly tighter than the 6% expected.

Bank of America Merrill Lynch was bookrunner.

Bank of America last sold 10-year notes in a $3 billion deal on June 17. The securities had a coupon of 5.625% and priced at a similar spread of 248 bps over Treasuries.

In secondary trading, the notes were seen late in the day at 242 bps bid, a trader said.

Another source saw the notes tightening into the close.

"It's now 7 to 10 basis points better," the source said. "Everything's pretty much better across the board in the financial world."

The bank is based in Charlotte, N.C.

Nasdaq plans deal

Nasdaq OMX Group is planning to price $370 million of notes (Baa3/BBB), according to a market source and a 424B5 filing with the Securities and Exchange Commission.

A market source away from the deal said that he had not seen the deal price and added that it was "probably Friday's business."

J.P. Morgan Securities LLC is the bookrunner. Co-managers were Bank of America Merrill Lynch and Wells Fargo Securities LLC.

Proceeds are going to fund a stock repurchase and pay associated fees and expenses.

The global exchange group is based in New York City.

RBC gives terms

The Royal Bank of Canada sold $200 million of 0.77% three-year fixed-to-floating-rate notes at par, according to an FWP filing with the SEC.

The notes (Aa1/AA-/AA) have a fixed-rate coupon until Dec. 20, 2011 and then a floating rate of Libor plus 23 basis points until maturity. They are non-callable.

RBC Capital Markets Corp. was bookrunner.

The financial services company is based in Montreal and Toronto.

C.R. Bard firms

C.R. Bard's notes firmed in secondary trading on Thursday, sources said.

C.R. Bard sold $750 million of senior notes (A3/A) on Wednesday, including $250 million of 2.875% notes due 2016 at a spread of Treasuries plus 83 bps and $500 million of 4.4% notes due 2021 at 100 bps over Treasuries.

The five-year notes firmed to 75 bps bid, 74 bps offered early in the day, a trader said.

The tranche of 10-year notes was seen in the afternoon at 95 bps bid, 93 bps offered.

The patient care device design and manufacturer is based in Murray Hill, N.J.

Oracle firms

Oracle's high-grade debt firmed 1 point to 2 bps in trading after the Redwood Shores, Calif.-based software company reported higher earnings.

Oracle reported that earnings in the second quarter ended November rose to $1.87 billion, or 37 cents a share, compared to $1.46 billion, or 29 cents a share, in the same period a year ago. Revenue jumped to $8.58 billion from $5.86 billion a year ago.

The company's 7.25% notes due 2016 firmed 1 bp to 72 bps bid, 67 bps offered on Thursday.

The 5.375% bonds due 2040 were seen at 94 bps bid, 89 bps offered.

"It's 2 basis points better on that one," a trader said.

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