Nordstrom, RBC, Thermo Fisher, IBRD, Rentenbank among new deals; new issues boost secondary

By Andrea Heisinger and Cristal Cody

New York, April 20 - Nordstrom, Inc., Ohio National Financial Services Inc., Landwirtschaftliche Rentenbank, Thermo Fisher Scientific Inc., Royal Bank of Canada, the Province of British Columbia and International Bank for Reconstruction and Development each priced bond deals on a Tuesday with the largest number of issues in recent weeks.

Thermo Fisher Scientific priced its $750 million deal in two tranches. It was made up of $450 million in five-year notes and $300 million in 10-year notes.

Seattle-based Nordstrom sold an upsized $500 million of 10-year notes in the afternoon.

Ohio National sold $300 million in 10-year notes after the sale went overnight from Monday.

German development bank Rentenbank reopened its 3.125% notes due 2015 to add $1 billion. This brings the total issuance of the notes to $2.5 billion, including the original sale done in January.

The Royal Bank of Canada sold $1 billion of notes due 2013 in the afternoon, while the World Bank's IBRD priced $3.5 billion of notes due in 2013.

Another Canadian issue came from the Province of British Columbia, which sold $1.5 billion in five-year notes.

There are two upcoming sales on the calendar, which are both expected to price on Wednesday.

Japan's Orix Corp. is planning a sale of five-year notes, and Dexia Credit Local, New York branch is to sell five-year notes under the guarantees of three countries.

The focus was on Goldman Sachs Group Inc. at the top of the day as the financial giant reported earnings and continued to be in the news for the fraud suit brought by the Securities and Exchange Commission against its mortgage unit.

The stellar earnings, on top of Citigroup Inc.'s on Monday, may have opened the window enough for the day's deals to get done.

"It [the tone] looked better than yesterday," a market source said.

Secondary trading got a boost in activity from a few new deals that hit primary on Tuesday. Offerings from Thermo Fisher Scientific and Nordstrom both tightened in trading, sources said.

Meanwhile in trading, overall Trace volume closed up about 6% to nearly $13 billion, according to a source.

Also on Tuesday, the CDX Series 14 North American high-grade index was seen 3 basis points tighter at a mid bid-asked spread level of 86 bps, according to a source.

Elsewhere, U.S. Treasuries were mixed.

The yield on the 10-year benchmark Treasury note was flat at 3.80%, while the yield on the 30-year Treasury bond firmed 2 bps to 4.68%.

Thermo Fisher sells $750 million

Thermo Fisher Scientific priced $750 million of senior notes (Baa1/A-/A-) in two tranches by mid afternoon, a source close to the sale said.

The $450 million tranche of 3.2% five-year notes priced at a spread of Treasuries plus 75 bps.

A $300 million tranche of 4.7% 10-year notes priced to yield 90 bps over Treasuries.

Bank of America Merrill Lynch, Deutsche Bank Securities and J.P. Morgan Securities were active bookrunners.

Proceeds will be used to redeem convertible floating-rate notes due 2033 and any 2033 convertibles presented for conversion on or prior to May 6 and to redeem 6.125% subordinated notes due in 2015.

The scientific technology company is based in Waltham, Mass.

RBC sells short bonds

The Royal Bank of Canada sold $1 billion of 2.1% medium-term notes (Aaa/AA-/AA) due 2013 to yield Treasuries plus 50 bps, a source close to the sale said.

There was no official price talk, and the sale was slightly oversubscribed at about $1.2 billion, he said.

"It went fine," the source said. "It was done on reverse inquiry, and we built on that."

Many of those buying the bonds knew how much they wanted, which was why the books were not heavily oversubscribed.

It was also why there was no price talk, as the 50 bps spread was "tight to begin with."

Bookrunners were Citigroup Global Markets and RBC Capital Markets.

The financial institution is based in Montreal.

Nordstrom upsizes

Fashion retailer Nordstrom priced an upsized $500 million of 4.75% 10-year senior unsecured notes (Baa2/BBB+/A+) by mid afternoon to yield Treasuries plus 100 bps, an informed source said.

The size was initially $350 million.

The bookrunners were Goldman, Sachs & Co. and Morgan Stanley & Co. Inc.

Proceeds are being used for general corporate purposes.

The issuer is based in Seattle.

Earnings, improved tone spur deals

All eyes were again on Goldman Sachs for the third straight day as the financial company announced first-quarter earnings.

The bank beat estimates when it announced it made $3.46 billion in the first quarter in a conference call, which likely pushed some bond issuers into the market.

"I think it gave it [the tone] a boost, for sure," a syndicate source said. "I know we had one that was on the fence and ended up going. Yesterday was bad, so it was a window."

The primary saw some of the first new deals from U.S. corporates since earnings season began and since Lowe's Cos. Inc. priced a deal on April 12. Spreads stayed tight, so some deals were done to take advantage of that, a syndicate source said.

By the end of the day, it appeared the window would stay open on Wednesday as two deals from Orix and Dexia went overnight.

More bad news could come out of the civil suit against Goldman's mortgage unit, as other countries prepare to investigate activities, bringing an end to the issuance window.

"It's hard to say [if there will be more deals]," a source said. "We'll see how it is at the open [Wednesday]."

British Columbia prices tight to talk

The Province of British Columbia sold $1.5 billion of 2.85% five-year global bonds (Aaa/AAA) late in the afternoon to yield Treasuries plus 32.3 bps, according to an FWP filing with the SEC.

The bonds priced at mid-swaps plus 11 bps, which was tight to initial talk in the mid-swaps plus 15 bps area.

The bookrunners were Bank of America Merrill Lynch, RBC Capital Markets and CIBC World Markets.

The provincial capital is Victoria, B.C.

Rentenbank reopens bonds

Germany's Rentenbank reopened its 3.125% notes due 2015 on Tuesday to add $1 billion, a market source said.

The notes (Aaa/AAA) priced at 99.692 and have a spread of Treasuries plus 62.8 bps. They are non-callable and were sold under Rule 144A.

Total issuance is $2.5 billion, including $1.5 billion priced on Jan. 6.

Goldman Sachs and Morgan Stanley handled the reopening.

The German development bank is based in Frankfurt.

World Bank unit prices

The International Bank for Reconstruction and Development priced $3.5 billion in global notes (Aaa/AAA) due 2013 to yield Treasuries plus 25 bps, an informed source said.

The full terms were not available at press time as the deal was done by the London syndicate desk.

Deutsche Bank Securities, JPMorgan, Morgan Stanley and RBS Securities ran the books.

The unit of the World Bank provides financing for development in countries and is based in Washington, D.C.

Ohio National prices 10-year notes

Ohio National Financial Services priced $300 million of 6.375% 10-year notes (Baa1/A) to yield Treasuries plus 262.5 bps, a source away from the deal said.

They were sold under Rule 144A with Bank of America Merrill Lynch running the books.

The insurance and financial services company is based in Cincinnati.

Dexia to price guaranteed notes

Dexia Credit Local, New York branch announced a sale of five-year notes, with the sale going overnight to price Wednesday, an informed source said.

The notes will be priced under Rule 144A. They will be "the last government-guaranteed deal" backed by the governments of Belgium, France and Luxembourg, the source said.

Bank of America Merrill Lynch, Deutsche Bank Securities and JPMorgan ran the books.

The bank and financial services company is based in Brussels.

Japan's Orix plans five-year sale

Financial services company Orix announced a sale of five-year unsecured notes (A3/A-) early in the day, with pricing expected after the sale goes overnight, a source close to the deal said.

Bank of America Merrill Lynch, Morgan Stanley and UBS Investment Bank are running the books, with proceeds being used for general corporate purposes.

The integrated financial services group is based in Tokyo.

Thermo Fisher Scientific notes firm

Thermo Fisher Scientific's new offering of $750 million of notes in five-year and 10-year tranches tightened in secondary trading, according to sources.

Thermo Fisher Scientific priced $450 million of 3.2% notes due 2015 at Treasuries plus 75 bps. In the late afternoon, the notes were seen at 69 bps bid, 67 bps offered, a trader said. The notes were quoted later at 73 bps, one trader said.

In addition, Thermo Fisher Scientific priced $300 million of 4.7% notes due 2020 at Treasuries plus 90 bps that traded tighter at 85 bps bid, 83 bps offered, a trader said.

The 10-year notes were last seen Tuesday at 85 bps bid, 82 bps offered, according to one trader.

Nordstrom tighter

Elsewhere in secondary trading, the 4.75% notes due 2020 priced on Tuesday by Nordstrom at Treasuries plus 100 bps firmed on the day, traders said.

"Seemed to be decent interest in the bond after it priced," a trader said.

The 10-year notes were seen late afternoon firming to 94 bps bid, 93 bps offered, a trader said.

Also, the notes were seen last trading tighter at 94 bps bid, 89 bps offered.

Ohio National Financial

While Ohio National Financial priced $300 million of 6.375% notes due 2020 on Tuesday, the deal didn't cross some traders' radar.

The notes priced to yield Treasuries plus 262.5 bps.

"Saw that it priced, but no flow," one trader said.

Goldman wider

Early Tuesday, Goldman Sachs reported that first-quarter net income nearly doubled to $3.29 billion, or $5.59 of earnings per share, from $1.7 billion, or $3.39 a share, but the growth took a backseat as the investigation over fraud charges grows.

Debt from the Wall Street bank has continued to weaken since the SEC on Friday levied fraud charges for failure to disclose information to investors over its handing of subprime debt.

In response, Britain's Financial Services Authority said Tuesday that it has started a formal investigation into Goldman Sachs International.

Goldman Sachs' outstanding bonds were "tighter in the A.M. but widened throughout the day," a trader said on Tuesday.

For example, Goldman Sachs' 7.5% notes due 2019 eased to 169 bps on Tuesday from 166 bps on Friday and 137 bps on Thursday, according to a source.

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