UPS, CIBC, Hyundai Capital, Credit Agricole among new deals; secondary spreads mostly wider

By Aleesia Forni and Andrea Heisinger

New York, Sept. 24 - High-grade bond sales exploded out of the gates on Monday morning with United Parcel Service, Inc. and Canadian Imperial Bank of Commerce among the larger deals leading the pack.

UPS was in the market for the first time since 2010 with a $1.75 billion trade of notes in three maturities.

CIBC priced $1 billion of three-year senior notes.

Electric utility Commonwealth Edison Co. sold $350 million of 30-year mortgage bonds.

And Canada's Agrium Inc. priced $500 million of 10-year debentures.

Australia's Westfield Holdings Ltd. sold $500 million of 10-year notes via three units, WEA Finance LLC, WT Finance (Australia) Pty. Ltd. and WT Finance (NZ) Ltd.

Credit Agricole SA, the banking group based in France, priced $1 billion of five-year bonds.

Newcrest Finance Pty. Ltd. sold $1 billion of new 10-year notes and a reopened 5.75% bond due 2041.

Hyundai Capital America Inc. priced $1 billion split evenly between notes due 2015 and 2017.

Meanwhile, U.S.-based Penske Truck Leasing Co. LP and PTL Finance Corp. sold $1.5 billion of notes due 2016 and 2018 in the company's second deal since July.

Swedbank AB was in the market with a $1 billion sale of five-year notes that priced tighter than guidance.

Sweden's Kommuninvest i Sverige sold $500 million of three-year floating-rate notes late in the morning.

A new deal of perpetual preferred stock was announced by Resource Capital Corp.

There was also an issue announced by Canada's Golden Credit Card Trust that includes both Canadian and U.S. dollar-denominated bonds.

Issuers were continuing to swarm the market on record-low yields despite a widening of spreads since the previous week, a market source said.

"Also, as we said last week, some are trying to get in before the Jewish holiday Wednesday," a syndicate source said, referring to Yom Kippur which begins at sundown on Tuesday.

The deals are expected to keep flowing on Tuesday, with a pull back perhaps on Wednesday, and some issuers are waiting until Thursday to look at the market.

"It's going to be busy this week, and then we should see it slow down," a source said at the end of the day.

The recent issuances from Schneider Electric SA and Ford Motor Credit Co. both widened 4 bps from Friday's levels in the secondary market.

Technology and telecommunications paper was 2 to 3 bps wider, one trader said.

AT&T Inc.'s bonds due 2039 were 1 bps wider. Verizon Communication Inc.'s 2037 bond widened 3 bps in trading.

Meanwhile, bank and financial paper widened "about 5 basis points" during the session.

Goldman Sachs' notes due 2018 were quoted 2 bps wider on the day.

UPS' $1.75 billion deal

United Parcel Service was in the market with a $1.75 billion offering of senior notes (Aa3/A+/) in three tranches, a market source said.

The $375 million of 1.125% five-year notes sold at a spread of 50 bps over Treasuries.

A second part was $1 billion of 2.45% 10-year bonds priced 75 bps over Treasuries.

There was also a $375 million tranche of 3.625% 30-year bonds offered at a spread of 80 bps over Treasuries.

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

Proceeds are being used to repay $1.75 billion of 4.5% senior notes maturing on Jan. 15, 2013 and for general corporate purposes.

UPS was last in the bond market with a $2 billion deal of notes due 2021 and 2040 on Nov. 8, 2010.

The 3.125% 10-year notes from that trade were sold at 65 bps over Treasuries, while the 4.875% 30-year bonds priced at 85 bps over Treasuries.

The package delivery and supply chain management company is based in Atlanta.

Newcrest's $1 billion trade

Newcrest Finance priced $1 billion of notes (Baa2/BBB+) in two parts, a market source said.

A $750 million tranche of 4.2% 10-year notes were priced at a spread of Treasuries plus 255 bps. The bonds were sold tighter than talk in the Treasuries plus 267.5 bps area, with a margin of plus or minus 2.5 bps.

The $250 million of reopened 5.75% bonds due 2041 were sold at a spread of 280 bps over Treasuries. The tranche was also priced tighter than talk in the 287.5 bps area, with a margin of plus or minus 2.5 bps.

Total issuance of the notes is $500 million, including $250 million priced on Nov. 7, 2011.

Barclays and Credit Suisse Securities (USA) LLC were bookrunners.

The unit of Newcrest Mining Ltd., which is in the business of the exploration and sale of gold, copper and silver, is based in Melbourne, Australia.

Hyundai prices tight

Hyundai Capital America sold $1 billion of bonds (Baa2/BBB+/) in two tranches, an informed source told Prospect News.

A $500 million tranche of 1.625% three-year notes priced at a spread of Treasuries plus 130 bps. Pricing was at the tight end of talk in the 130 bps to 140 bps range.

The second part was $500 million of 2.125% five-year notes sold at a spread of 150 bps over Treasuries. The tranche was sold at the low end of guidance in the 150 bps to 160 bps range.

Pricing was done under Rule 144A and Regulation S.

Bookrunners were Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC.

The financing arm of Hyundai in the United States is based in Irvine, Calif.

CIBC sells short bond

Canadian Imperial Bank of Commerce sold $1 billion of 0.9% three-year senior notes (Aa2/A+/AA-) to yield Treasuries plus 57 bps, an informed source said.

Citigroup Global Markets Inc., CIBC World Markets Corp., UBS Securities LLC and Wells Fargo Securities LLC were bookrunners.

Proceeds are being added to the bank's funds for general corporate purposes.

The diversified financial institution is based in Toronto.

Agrium sells $500 million

Agrium sold $500 million of 3.15%10-year debentures (Baa2/BBB/BBB+) at a spread of Treasuries plus 145 bps, a source away from the trade said.

In the secondary market, Agrium's debentures firmed to 142 bps bid, 139 bps offered, a trader said.

Bank of America Merrill Lynch, RBC Capital Markets LLC and Scotia Capital USA Inc. were bookrunners.

Proceeds are being used to fund capital expenditures and for general corporate purposes.

The retailer of agricultural products is based in Calgary, Ab.

Credit Agricole's five-years

Credit Agricole sold $1 billion of 3% five-year bonds (A2/A/A-) to yield Treasuries plus 235 bps, a source away from the trade said.

The paper priced under Rule 144A and Regulation S.

Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were bookrunners.

The retail banking group is based in Paris.

Westfield sells privately

WEA Finance LLC, WT Finance (Australia) Pty. Ltd. and WT Finance (NZ) Ltd., units of Westfield Holdings Ltd., sold $500 million of 3.375% 10-year notes (A2/A-/) at a spread of 180 bps over Treasuries, a market source said.

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

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

The deal is guaranteed by Westfield Holdings, Westfield Management Ltd. and Westfield America Management Ltd.

The retail property owner and operator Westfield Group is based in Sydney, Australia.

ComEd's long bonds

Commonwealth Edison priced a $350 million offering of 3.8% 30-year first-mortgage bonds, series 113, (A3/A-/) at Treasuries plus 92 bps, an informed source said.

There was a do-not-grow provision on the size.

Citigroup Global Markets Inc., Mitsubishi UFJ Securities (USA) Inc., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC were bookrunners.

The company intends to use proceeds from the issuance to repay its total outstanding commercial paper obligations and for general corporate purposes.

ComEd is an electricity provider based in Chicago. It is a subsidiary of Exelon Corp.

Swedbank prices tight

Swedbank priced $1 billion of 2.125% five-year bonds at Treasuries plus 150 bps, a market source said.

The notes (A2/A+/A+) were sold tighter than talk in the 160 bps area.

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

Bookrunners were Bank of America Merrill Lynch, Barclays and BNP Paribas Securities Corp.

The financial services company is based in Stockholm.

Penske units' $1.5 billion

Penske Truck Leasing Co. LP and PTL Finance Corp. were in the market with a $1.5 billion sale of notes (Baa3/BBB-/) in tranches due 2016 and 2018, an informed source said.

The sale included $1 billion of notes due 2016 that priced at a spread of Treasuries plus 220 bps. The tranche sold tighter than talk in the 240 bps area, plus or minus 3 bps, the source said.

A $500 million tranche of notes due 2018 sold at Treasuries plus 275 bps. The notes were also priced tighter than guidance in the 287.5 bps area.

Full terms were not available at press time.

The notes were priced under Rule 144A and Regulation S without registration rights.

Bookrunners were Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC.

The global transportation services provider is based in Reading, Pa.

Kommuninvest sells floaters

Kommuninvest i Sverige priced $500 million of three-year floating-rate notes to yield Libor plus 4 bps, a market source said.

The notes (Aaa/AAA/) were sold at 99.97 with a coupon of Libor plus 3 bps. Pricing was in line with guidance.

J.P. Morgan Securities LLC and Nomura Securities International Inc. were bookrunners.

Kommuninvest offers funding to municipalities of Sweden and is based in Orebro.

Golden Credit plans deal

Golden Credit Card Trust is expected to bring an offering of about C$800 million to C$900 million of U.S. and Canadian dollar senior floating-rate and credit card receivables-backed notes on Tuesday, a bond source said.

The trust plans to sell series 2012-5 notes that include a U.S. dollar-denominated tranche of credit card receivables-backed senior notes (Aaa/) and a Canadian dollar-denominated tranche of credit card receivables-backed subordinated notes (Baa1/).

The bank also expects to price a series 2012-6 offering that includes a tranche of U.S. dollar-denominated senior floating-rate notes (Aaa/).

RBC Capital Markets LLC is the bookrunner.

A cross-currency, interest-rate swap is expected to be in place for the senior notes.

Golden Credit Card Trust, a pool of MasterCard and Visa credit card receivables managed by Toronto-based Royal Bank of Canada, will use the proceeds to finance undivided co-ownership interests in the receivables of certain credit card accounts.

Resource Capital preferreds

Resource Capital is planning a sale of series B cumulative redeemable perpetual preferreds, according to a prospectus filed with the Securities and Exchange Commission.

The company has applied to list the new series of preferreds on the New York Stock Exchange under the ticker symbol "RSOPB."

Joint bookrunners are Deutsche Bank Securities Inc., Credit Suisse Securities (USA) Inc., JPMorgan Securities LLC and MLV & Co.

Proceeds will be used for investments related to the company's business and for general corporate purposes.

Resource Capital is a New York-based specialty finance company focused on commercial real estate and commercial finance.

Ford widens

Ford Motor Credit's 4.25% notes due 2022 were quoted at 241 bps bid, 238 bps offered on Monday, a trader said.

A trader had seen the notes at 237 bps bid on Friday.

The $1 billion notes sold at a spread of 260 bps over Treasuries.

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

Schneider 10-years

In another deal issued last week, Schneider Electric's $800 million 2.95% 10-year notes traded at 122 bps bid, 117 bps offered following last week's level of 118 bps bid.

The Rueil-Malmaison, France-based energy management company priced the notes at 120 bps over Treasuries on Thursday.

AT&T widens

Also in the secondary market, AT&T Inc.'s bonds due 2039 widened 1 bps on Monday, closing the session at 144 bps bid.

The Dallas-based phone and internet services provider priced $2.25 billion 6.55% notes in February 2009.

Verizon notes

Verizon Communication's bond due April 1, 2037 widened 3 bps to 133 bps bid.

The New York City-based broadband and telecommunications company priced the $750 million 6.25% bond in 2007.

Goldman Sachs wider

Meanwhile, Goldman Sachs' bond due 2018 widened 2 bps to 220 bps bid on Monday.

The bank priced $1.5 billion 6.15% 10-year bonds in April 2008 at Treasuries plus 237.5 bps.

Cristal Cody and Stephanie N. Rotondo contributed to this review

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