P&G, Williams Partners, Paccar price; UBS plans hybrid bonds; financial paper trades wider

By Aleesia Forni and Andrea Heisinger

New York, Aug. 9 - The pace of new investment-grade deals slowed slightly on Thursday but still produced deals from Procter & Gamble Co., Williams Partners LP, Paccar Financial Corp. and Hospitality Properties Trust.

Procter & Gamble followed up a euro-denominated deal with a $1 billion sale of floating-rate notes due 2014.

Energy company Williams Partners sold $750 million of 10-year notes.

Hospitality Properties priced an upsized $500 million of 10-year notes, and Paccar Financial sold $300 million of three-year paper.

The preferred stock market remained active as well with Wells Fargo & Co. announcing and pricing an upsized $675 million of noncumulative perpetual preferred shares.

Swiss bank UBS AG announced plans for a $1,000-par sale of hybrid capital bonds.

Although the flow of deals was less than in the first half of the week, sources said they didn't consider it a break.

"We were still pretty busy today, mopping up and everything," a syndicate source said.

Friday is expected to be "pretty quiet," a market source said. The last couple of Fridays have each seen a smattering of small deals as companies try to get into the high-grade market before conditions deteriorate.

"Everyone's just getting in for financing before something else happens in Europe or there's some bad headline," the market source said. "Why not while it's cheap?"

The Markit CDX Series 18 North American Investment Grade index was unchanged at a spread of 103 basis points on Wednesday.

In the secondary market, Williams Partners' new issue firmed 2 bps late in the session, and Tuesday's 30-year bond from Time Warner Cable Inc. traded "basically flat."

Bank and financial paper was wider "by about 5 bps," a trader said. Notes from Royal Bank of Canada and Bank of America Corp. were among deals to widen in trading during Thursday's session.

P&G sells $1 billion

Procter & Gamble priced $1 billion of floating-rate notes due 2014 (Aa3/AA-/) at par to yield Libor minus 10 bps, a source away from the trade said.

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

Proceeds are being used for general corporate purposes.

The Cincinnati-based consumer products company was last in the market with a $2 billion offering in two tranches on Feb. 1.

Williams' 10-year

Williams Partners sold $750 million of 3.35% 10-year senior notes (Baa2/BBB/BBB-) at a spread of 170 bps over Treasuries, a market source said.

The notes were quoted at 168 bps bid, 165 bps offered near the end of the day's session.

The deal was sold at the tight end of talk in the 175 bps area, plus or minus 5 bps.

There was roughly $2 billion of investor demand for the sale, the market source said.

UBS Securities LLC, RBS Securities Inc. and Wells Fargo Securities LLC were the active bookrunners.

Proceeds are being used to repay amounts under a credit facility and for general partnership purposes.

Williams, a Tulsa, Okla.-based energy infrastructure company, was last in the market with a $500 million offering of 4% 10-year notes priced at 200 bps over Treasuries on Nov. 14, 2011.

Hospitality Properties upsizes

Hospitality Properties Trust priced $500 million of 5% 10-year senior notes (Baa2/BBB/) at a spread of Treasuries plus 355 bps, a source close to the deal said.

There was about $1.25 billion of demand for the trade, the source added.

The sale was upsized from $300 million and sold at the tight end of talk in the 360 bps area, plus or minus 5 bps.

The bookrunners were Citigroup Global Markets Inc., Bank of America Merrill Lynch, RBC Capital Markets LLC and Wells Fargo.

Proceeds will be used to prepay in full $287 million of 6.75% senior notes due Feb. 15, 2013 and for general corporate purposes.

The real estate investment trust for hotels and travel centers was last in the market with a $300 million issue of five-year notes on Aug. 7, 2009.

Hospitality Properties is based in Newton, Mass.

Paccar prices short bond

Paccar Financial was in the market with a $300 million issue of 0.75% three-year medium-term notes, series M, (A1/A+/) that priced at Treasuries plus 40 bps, a market source said.

The bookrunners were J.P. Morgan Securities LLC and Mitsubishi UFJ Securities Inc.

Paccar was last in the market with a $550 million offering of notes in two tranches on June 5. That included a 1.05% three-year note priced at 75 bps over Treasuries.

The provider of retail and commercial truck financing for Paccar Inc. is based in Bellevue, Wash.

Wells Fargo's preferreds

Wells Fargo sold $675 million of 5.2% class A noncumulative perpetual preferreds, series N, a trader told Prospect News.

Price talk was originally 5.375% to 5.5%, the trader said. However, it was then revised to 5.2%, he said, opining that greater-than-expected demand was the cause.

The deal was upsized from $250 million.

Wells Fargo was the bookrunner.

The securities will be sold as $25 depositary shares representing a 1/1,000th interest in a full preferred.

The bank is applying to list the preferreds on the New York Stock Exchange under the ticker symbol "WFCPN."

Proceeds will be used for general corporate purposes, including investments in or advances to existing or future subsidiaries, the repayment of obligations that have matured and reducing outstanding commercial paper and other debt.

The financial services company is based in San Francisco.

UBS plans hybrid

UBS plans to price $1,000-par 10-year hybrid capital bonds (BBB-/BBB-), a market source told Prospect News.

Talk is in the 8% area, and the size of the deal could be anywhere between $1 billion and $5 billion, the source said.

UBS Securities is the lead arranger. The joint bookrunners are Barclays, Citigroup, Goldman Sachs & Co., JPMorgan, Morgan Stanley, RBS and Wells Fargo.

Pricing is expected Friday.

UBS is a Zurich-based bank.

Time Warner Cable flat

The recent issuance from Time Warner Cable was seen "basically flat," one trader said, adding that the bonds were "not trading too [actively]."

The $1.25 billion of 4.5% 30-year senior debentures were seen at 183 bps bid, 180 bps offered near the end of the session.

The bonds had tightened 2 bps to 181 bps bid, 179 bps offered late on Tuesday after pricing at a spread of 183 bps over Treasuries earlier that day.

Meanwhile, the company's $700 million 4.125% notes due 2021 were also unchanged on the day at 130 bps bid.

Time Warner Cable priced the notes at 155 bps over Treasuries on Nov. 9, 2010.

The entertainment company is based in New York.

RBC widens

The $1.25 billion issue of 1.45% notes due 2014 from Royal Bank of Canada traded 3 bps wider on Thursday to 43 bps bid.

The bank sold the notes at a spread of 105 bps over Treasuries on Oct. 25, 2011.

Bank of America too

In other trading, Bank of America's 7.375% five-year notes widened 1 bps to 189 bps bid.

The bank priced $3 billion of the notes due 2014 at Treasuries plus 537.5 bps on May 8, 2009.

Stephanie N. Rotondo contributed to this review

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