Corn Products, Barclays, Woolworths among issuers; Rabobank sells 100-years; Deere, PG&E widen

By Andrea Heisinger and Cristal Cody

New York, Sept. 14 - Fiserv, Inc., Japan Finance Corp., Corn Products International Inc., Rabobank Nederland NV, Commonwealth REIT, Edison International, Manulife Financial Corp., Woolworths Ltd., American Honda Finance Corp. and Barclays Bank plc all sold bonds as the flood of new paper continued in the high-grade market.

The day was heavier with foreign issuers than some have been, and several deals were more than $1 billion.

Australia's Woolworths was one of those issuers, pricing $1.25 billion of notes in five- and 10-year tranches.

Fiserv sold its $750 million deal in two tranches by mid-afternoon. The sale was divided between five-year notes and 10-year notes.

Corn Products priced its $900 million issue of senior notes in three tranches, including some reopened bonds. Two of the three priced at the tight end of guidance.

Japan Finance priced $1.5 billion of five-year bonds that are guaranteed by the government of Japan.

The only utility to price notes during the day was Edison International. The company priced $400 million of seven-year notes.

Commonwealth REIT had one of the smaller sales of the day with its $250 million of 10-year notes.

The retail financing arm of Honda, American Honda Finance, priced its $1.75 billion sale late in the day under Rule 144A. It was divided among three tranches.

Another late sale came from Barclays Bank with its $1 billion deal of covered bonds that were also sold under Rule 144A.

Canadian insurance and financial services company Manulife sold $1.1 billion of notes in two tranches.

Tuesday will likely be the busiest day this week, a market source said.

"We've already had decent volume [yesterday] and today, so I think it's slowing tomorrow," he said.

He added that his desk could have a small trade in the coming day, while a syndicate source said his desk could have "one or two things" on Wednesday.

The market was "busier" on Tuesday for "anything with a decent yield," a trader said. "Most liquid names - trading volumes have picked up from pre-Labor Day."

Overall investment-grade Trace volume fell 4% to about $12 billion, according to a source.

The Markit CDX Series 14 North American investment-grade index eased 1 basis point to a spread of 104 bps, according to Markit Group Ltd.

U.S. Treasuries rallied on Tuesday, sending yields down, on growing buzz that the Federal Reserve may purchase more government debt to spur the economy.

The yield on the 10-year note fell to 2.68% from 2.75%. The yield on the 30-year bond fell 5 bps to 3.8%.

"The market's rallying right around the curve and quite aggressively," a source said. "The 10-year bond rallied by 8 basis points."

Fiserv prices $750 million

Fiserv sold a $750 million issue of notes (Baa2/BBB-) in two tranches, a source close to the sale said.

The $300 million tranche of 3.125% five-year notes priced at a spread of Treasuries plus 175 bps. They were priced at the tight end of talk in the range of 175 to 187.5 bps, the source said.

A $450 million tranche of 4.625% 10-year notes was sold at 200 bps over Treasuries. They were also priced at the tight end of guidance in the 200 to 212.5 bps range.

The company last sold bonds in 2007. They are guaranteed by BillMatrix Corp., CheckFree Services Corp., Fiserv Solutions, Inc., Information Technology, Inc., Interactive Technologies, Inc. and ITI of Nebraska, Inc.

Credit Suisse Securities and Wells Fargo Securities were the bookrunners.

Proceeds are going to fund the purchase of up to $250 million of 6.125% senior notes due 2012 under a tender offer. The remainder will be used to repay a portion of outstanding borrowings under a term loan facility.

Fiserv's new bonds traded slightly tighter in the secondary market, according to a source.

The notes due 2015 moved 1 bp tighter from pricing of 175 bps over Treasuries on the offer side to 174 bps.

The notes due 2020 priced at 200 bps over and were seen trading at 200 bps bid, 194 bps offered.

The information technology and electronic commerce systems company is based in Brookfield, Ill.

Corn Products prices tight

Corn Products International priced $900 million of senior unsecured notes (Baa2/BBB) in an upsized three tranches by late afternoon, an informed source said.

The deal was announced in a 424B5 filing with the Securities and Exchange Commission as being in two tranches.

The $350 million tranche of 3.2% five-year notes priced at a spread of Treasuries plus 180 bps. They were sold at the tight end of guidance in the 180 to 190 bps range.

A second tranche of $400 million in 4.625% 10-year notes priced at 200 bps over Treasuries. They were also priced at the tight end of talk in the range of 200 to 210 bps.

The final tranche was a reopening of 6.625% notes due 2037 to add $150 million. The notes priced at a spread of Treasuries plus 240 bps. They were sold at the wide end of talk in the range of 230 to 240 bps.

Revised guidance on the five-year and 10-year notes was 200 to 225 bps, and both priced "much better," the source said.

J.P. Morgan Securities Inc., Bank of America Merrill Lynch and Citigroup Global Markets Inc. were the bookrunners.

Proceeds will be used to finance a portion of the consideration for the acquisition of National Starch from Akzo Nobel NV.

The food and industrial corn refiner is based in Westchester, Ill.

Overseas names prominent

There were several names in the primary from other countries, and most of their deals were more than $1 billion in size.

The market was "good" for the day, said one source who was watching how the new bonds were performing in the secondary.

"Some of the trades were heavy," he said. "We didn't free Woolworths or Corn Products."

Other eyes were on the Rabobank sale of 100-year bonds that was met with "decent enough demand" to warrant upping the size of the sale by $100 million.

The Corn Products and Woolworths deals were also oversubscribed, which has been the norm recently.

"If they sell fives and 10[-year maturities], people will buy them," a market source said. "Everyone [issuing] is still excited about the coupons, so we're not going to have a shortage of paper."

Only a couple of the day's sales were upsized, although the Corn Products trade had a tranche of reopened notes added.

Wednesday is expected to quiet down but not be completely dead on the new issue front, sources said.

Rabobank's 100-year bond

Rabobank Nederland priced an upsized $350 million of 5.8% 100-year bonds on Tuesday at par to yield 5.8%, a source close to the sale said.

The notes (Aaa/AAA) are non-callable, and they priced in line with talk of 5.8% yield. The size was increased from $250 million.

This was the second 100-year bond in a month after Norfolk Southern Corp. reopened its bonds due 2105 on Aug. 23. That bond had a coupon of 6% and yield of 5.95%.

A secondary source called the yield on the Rabobank bonds "shocking."

The bookrunners were Credit Suisse Securities and Goldman, Sachs & Co.

The lender to the food and agriculture sector of the Netherlands is based in Utrecht.

Barclays sells covered bonds

Barclays Bank sold $1 billion of 2.5% five-year covered bonds late in the day to yield 109.5 bps over Treasuries, or mid-swaps plus 90 bps, an informed source said.

The notes (Aaa/AAA) were sold under Rule 144A.

Barclays Capital Inc., BNP Paribas Securities, Citigroup and UBS Investment Bank were the bookrunners.

The financial services company is based in London.

Manulife prices $1.1 billion

Manulife Financial priced a $1.1 billion issue of senior unsecured notes (/A/A-) in two tranches late in the day, according to a market source and press release.

The deal had been announced on Monday and went overnight.

The $600 million tranche of 3.4% five-year notes priced to yield Treasuries plus 200 bps.

A second tranche was $500 million of 4.9% 10-year notes priced at Treasuries plus 225 bps.

Citigroup and Morgan Stanley & Co. Inc. were active bookrunners.

Proceeds will be used for general corporate purposes, including investments in subsidiaries.

Manulife's new notes were seen active on the offer side in the secondary market, according to a trader.

The notes due 2015 were last quoted at 197 bps offer.

In late trading, the second tranche of notes due 2020 traded at 222 bps offer.

The financial services company is based in Toronto.

Japan Finance's guaranteed deal

Japan Finance priced $1.5 billion of 1.875% five-year senior unsecured notes by early afternoon to yield Treasuries plus 46.7 bps, according to an FWP filing with the SEC.

The notes (Aa2/AA) are guaranteed by the government of Japan.

Bank of America Merrill Lynch, JPMorgan and Nomura Securities International Inc. ran the books.

Proceeds are being used for the operations of the Japan Bank for International Cooperation.

The lender to the general public and Japanese businesses is based in Tokyo.

Woolworths sells $1.25 billion

Woolworths priced a $1.25 billion deal of notes (A3/A-) in two tranches by late afternoon, a source close to the sale said.

A $500 million tranche of 2.55% five-year notes priced at 115 bps over Treasuries, and a second tranche of $750 million in 4% 10-year notes priced to yield 135 bps over Treasuries.

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

The bookrunners were Bank of America Merrill Lynch, Citigroup and JPMorgan.

The food and other retailer in Australia and New Zealand is based in Bella Vista, Australia.

American Honda's private deal

American Honda Finance priced a $1.75 billion issue of notes (A1/A+) in three tranches late in the day, a market source away from the deal said.

The $250 million of 1.625% three-year notes priced at a spread of Treasuries plus 87.5 bps.

A $1 billion tranche of 2.5% five-year notes sold at a spread of 110 bps over Treasuries.

The third tranche was $500 million of 3.875% 10-year notes priced at a spread of 125 bps over Treasuries.

The deal was sold under Rule 144A.

The bookrunners were BNP Paribas, Deutsche Bank Securities and JPMorgan.

Honda's three tranches of notes were mostly tighter in the gray markets, a source said.

The notes due 2013 were seen at 85 bps bid.

The notes due 2015 were firmer at 109 bps bid, 104 bps offered.

The last tranche of notes due 2020 widened to 134 bps bid, 119 bps offer, the source said.

The retail financing arm of Honda is based in Torrance, Calif.

Edison sells seven-years

Edison International priced $400 million of 3.75% seven-year senior unsecured notes (Baa2/BBB-) by mid-afternoon at Treasuries plus 170 bps, an informed source said.

The bookrunners were Bank of America Merrill Lynch, Citigroup, Credit Suisse, Deutsche Bank, JPMorgan and RBS Securities.

Proceeds will be used to repay $390 million in short-term borrowings under a revolving credit facility, with the remainder for corporate liquidity purposes.

The notes due 2017 traded in the secondary market firmer at 160 bps bid, 158 bps offered, a trader said.

The holding company for utility subsidiaries is based in Rosemead, Calif.

Commonwealth's 10-years

Commonwealth REIT sold its $250 million of 5.875% 10-year senior unsecured notes (Baa2/BBB) to yield Treasuries plus 350 bps, a market source away from the sale said.

The bookrunners were Bank of America Merrill Lynch, Citigroup and UBS.

Proceeds will be used to reduce amounts under a revolving credit facility.

The real estate investment trust for office and industrial buildings is based in Newton, Mass.

Entergy gives terms

Entergy Corp. gave terms for its $1 billion sale of senior notes (Baa3/BBB-) done late Monday in an FWP filing with the SEC.

The $550 million of 3.625% five-year notes priced at a spread of Treasuries plus 212.5 bps.

A $450 million tranche of 5.125% 10-year notes priced at 237.5 bps over Treasuries.

Morgan Stanley, Barclays Capital, BNP Paribas, Citigroup, Goldman Sachs, JPMorgan, RBS Securities and Wells Fargo ran the books.

Proceeds are being used to repay a portion of debt under a $3.5 billion revolving credit facility expiring in August, 2012.

In the secondary market, Entergy's notes due 2015 were seen tighter on the offer side at 208 bps, one source said.

The notes due 2020 traded at 245 bps bid, 243 bps offered, the source said.

No activity was seen in the tranche late in the day, a trader said.

The electric energy company is based in New Orleans.

RBS sells $2 billion

The Royal Bank of Scotland plc priced $2 billion of 3.95% five-year senior notes on Monday to yield 250 bps over Treasuries, according to an FWP filing with the SEC.

The notes (Aa3/A+/AA-) are guaranteed by RBS Group plc.

RBS Securities was the bookrunner.

In the secondary market, the notes due 2015 traded wider on the bid side at 253 bps bid, 248 bps offered, according to one source.

"It's trading 5 basis points off the new issue," said another trader who saw the notes at 250 bps bid, 245 bps offered.

The notes later were seen tightening on the offer side to 246 bps, a third trader said.

The retail banking subsidiary of RBS Group is based in Edinburgh.

Deere wider

John Deere Capital Corp.'s 2.8% senior medium-term notes due 2017, which priced at Treasuries plus 68 bps, moved out in secondary trading on Tuesday, sources said.

"The John Deere Capital is trading a little bit wider," a source said.

The notes were seen by one trader at 74 bps bid, 70 bps offered.

Late in the day, a source saw the notes at 72 bps bid, 69 bps offer.

The retail financing arm of heavy equipment maker Deere & Co. is based in Reno, Nev.

PG&E weakens

Pacific Gas and Electric Co.'s new high-grade debt, which was sold the week before, widened in secondary trading on Tuesday on the heels of details of an explosion from a gas pipeline in a San Bruno, Calif., residential community.

According to the company's 8-K filing with the SEC, the explosion and fire damaged at least 45 homes and resulted in several fatalities.

The 3.5% senior unsecured notes due 2020 were quoted trading wider on Tuesday at 103 bps bid, 100 bps offered.

"Yesterday - 97, 95," the trader said.

The company priced the notes (A3/BBB+) on Sept. 8 at 90 bps over Treasuries, an informed source said.

The electric and natural gas utility is based in San Francisco.

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