ANZ, Perrigo, Paccar tap market; Perrigo's new notes trade tighter in slower secondary market

By Aleesia Forni and Andrea Heisinger

New York, May 9 - Three new bond sales were announced in Thursday's session by ANZ Banking Group Ltd., Perrigo Co. and Paccar Financial Corp.

ANZ had the largest trade of the day by far at $2.5 billion in three tranches. The offering included two-year floating-rate notes, five-year floaters and five-year fixed-rate bonds.

Perrigo sold $600 million of 10-year notes. The health-care and pharmaceutical company has no outstanding bonds, a source said.

The size of the trade was increased from $500 million due to investor demand, the source said.

Paccar Financial priced $450 million of bonds in two parts. The sale included $200 million of two-year floating-rate notes and $250 million of three-year paper.

A syndicate source who worked on two of the day's trades called the market as a whole "sluggish" after the previous day's haul of more than $11 billion of new supply.

"Nothing exciting today," the source added. "We'll see a break tomorrow."

In the preferred stock market, General Electric Capital Corp. priced $750 million of 40-year $25-par notes. The size was increased from a minimum of $250 million.

The Markit CDX North American Investment Grade index was 2 basis points wider on Thursday at a spread of 71 bps.

The high-grade secondary market's pace slowed on Thursday following a busy session on Wednesday, one trader said.

"Definitely not as much activity as we saw yesterday," the trader added.

A trader at another desk saw Perrigo's new issue trading 2 bps better late during the session.

ANZ's $2.5 billion

ANZ Banking Group, New York branch was in the market with a $2.5 billion sale of senior bonds (Aa2/AA-/) in three tranches, an informed source said.

A $1 billion tranche of two-year floating-rate notes sold at par to yield Libor plus 20 bps.

There was also $750 million of five-year floaters priced at par to yield Libor plus 56 bps.

A third tranche was $750 million of 1.45% five-year notes sold at a spread of Treasuries plus 72 bps.

Pricing was done under Rule 144A and Regulation S.

The bookrunners were ANZ Securities, Citigroup Global Markets Inc. and Goldman Sachs & Co.

The financial services company is based in Melbourne, Australia.

Perrigo upsizes

Perrigo sold an upsized $600 million of 2.95% 10-year senior notes (Baa3/BBB/) during the day's session to yield Treasuries plus 125 bps, a market source said.

The notes traded 2 bps better on Thursday at 123 bps bid, 120 bps offered, a market source said.

Initial guidance was in the 140 bps area over Treasuries, the source said at midday, adding that the company does not have any outstanding bonds. The size was increased from $500 million.

The active bookrunners were BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC. Passive was J.P. Morgan Securities LLC.

Proceeds are being used for general corporate purposes.

The health-care company and maker of generic and over-the-counter pharmaceuticals is based in Allegan, Mich.

Paccar's two parts

Paccar Financial priced $450 million of notes (A1/A+/) in two maturities, an informed source said.

The sale included $200 million of two-year floating-rate notes priced at par to yield one-month Libor plus 21 bps. Initial guidance was in the one-month Libor plus high 20 bps area.

The second part was $250 million of 0.75% three-year notes sold at a spread of Treasuries plus 43 bps. Initial talk was in the Treasuries plus 50 bps area.

There was a do-not-grow provision on the sale, the source said.

The bookrunners were Citigroup, Mitsubishi UFJ Securities (USA) Inc. and RBC Capital Markets LLC.

Paccar Financial last tapped the U.S. bond market with a $500 million offering of three-year notes in two tranches on Feb. 5.

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

GE's $25-par notes

General Electric Capital priced $750 million of 4.7% $25-par senior notes due 2053, a market source said.

Price talk on the notes (expected ratings: A1/AA+/) was 4.75% to 4.875%.

"They might adjust it down or even bring it at 4.7%," a trader said of price guidance, seeing paper trade in the midday gray market at $24.85.

Morgan Stanley, BofA Merrill Lynch, UBS Securities LLC and Wells Fargo were the joint bookrunners.

Proceeds will be used for general corporate purposes.

GE Capital is a Norwalk, Conn.-based wholly owned subsidiary of General Electric Co. and a provider of financial services and products.

Stephanie N. Rotondo contributed to this review

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