Mead Johnson mega-deal, Hyundai, Amphenol offering price; new bonds firm in secondary

By Paul Deckelman and Sheri Kasprzak

New York, Oct. 29 - Mead Johnson Nutrition Co. was heard by investment grade syndicate sources to have priced a $1.5 billion three-part bond offering on Thursday. Secondary traders meantime saw all three tranches tighten smartly when the paper was freed for aftermarket dealings.

The sale included $500 million in five-year notes, $700 million in 10-year notes and $300 million in 30-year bonds.

The joint bookrunners were Citigroup Global Markets Inc. and Morgan Stanley & Co. Inc.

Also pricing during the session was a $500 million deal from Hyundai Capital Services, which likewise moved up in the aftermarket.

Wallingford, Conn.-based electronic components manufacturer Amphenol Corp. priced a $600 million issue of five-year notes.

Petrobras International Finance Co., an arm of the Brazilian state energy company, remained active Thursday, as it has been all this week. The two tranches of its recently priced offering tightened solidly, after having widened out on Wednesday.

Amphenol brings $600 million

Amphenol sold $600 million in 4.75% senior notes priced at 99.813, according to a statement from the company.

The notes (Baa2/BBB) were sold through bookrunners Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities Inc.

The notes are due 2014, and proceeds will repay a revolving credit facility.

Headquartered in Wallingford, Conn., Amphenol designs and makes electrical, electronic and fiber optic connectors.

Hyundai Capital prices notes

Elsewhere in primary action, Hyundai Capital Services Inc. priced $500 million in notes in a Rule 144A private placement on Thursday. The notes were sold from the company's $3 billion medium-term note program.

The 6% notes (Baa2/BBB/) were priced at 99.543 to yield 6.022%. The spread came in at 369.4 basis points over Treasuries. The notes are due May 5, 2015.

Citigroup Global Markets Inc., Deutsche Bank, Goldman, Sachs & Co., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc. and Royal Bank of Scotland were the joint bookrunners for the sale.

Proceeds will be used to fund general corporate expenditures.

Headquartered in Irvine, Calif., Hyundai provides automobile financing.

Mead Johnson moves tighter

Traders saw the new Mead Johnson Nutrition bonds having tightened anywhere from 10 bps to 17 bps from the spread levels at which the Glenview, Ill.-based maker of infant formula priced its three-part issue earlier in the session.

A trader saw its $500 million of five-year notes having tightened to 110 bps bid, 105 bps offered, from 120 bps over.

Its $700 million of 10-year notes, which priced at 145 bps over, had come in to 135 bps bid, 130 bps offered late in the day.

And its $300 million of new 30-year bonds were quoted at 140 bps bid, 138 bps offered, well in from 155 bps at the pricing.

Another trader quoted the 10-years offered at 132 bps, and saw the long bonds in a 143 bps bid, 135 bps offered context.

Hyundai Finance is firmer

A trader saw Hyundai Capital Services' 6% notes due 2015 having come in to a bid level of 360 bps over, although he did not see an offering level.

The financial arm of the Korean automaker had priced its $500 million issue earlier at 369.4 bps over comparable Treasuries.

Amphenol absent from aftermarket

Traders did not see the new Amphenol Corp. 4.75% senior notes due 2019 trading around, since it priced late in the session. The $600 million issue priced at 99.813.

Recent new deals seen tighter

Among recently priced offerings, a trader saw Eastman Chemical Co.'s 5.50% notes due 2019 having come in to 195 bps bid, 190 bps offered.

The Kingsport, Tenn.-based manufacturer priced its $250 million issue Wednesday at 210 bps over.

The trader also saw Coca-Cola Amatil's $400 million offering of 3.25% notes due 2014 trading at 92 bps bid, 89 bps offered, in from the 95 bps over level at which the Australian soda bottler priced its deal Wednesday.

And Oglethorpe Power Corp.'s 5.95% first mortgage bonds due 2039 tightened to 150 bps bid, 143 bps offered, from the 160 bps over level at which the Georgia-based power producer priced its $400 million deal on Monday.

Petrobras paper busy, again

A market source said that the new Petrobras International Finance Co. issue was again actively traded on the day, with nearly $40 million of the Brazilian state energy concern's new deal having changed hands by mid-afternoon, according to the Trace bond-tracking service.

The source quoted the 5.75% notes due 2020 at 216 bps bid, smartly tighter than the 241 bps level seen Wednesday, and the 238 bps at which that $2.5 billion of paper priced last Friday.

The other half of that $4 billion, two-tranche offering, the 6.875% bonds due 2040, were meantime seen trading at 230 bps over, also in substantially from 276 bps over on Wednesday and from the 270 bps over level at which the $1.5 billion of bonds priced last Friday. Over $25 million of the '40s had changed hands as of mid-afternoon.

Another trader said that the issues "tightened about 18 bps today, after widening about 14 bps [Wednesday]," and further noted that the credit has been among the more active issues on Trace since its pricing last week.

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