KfW, Banque Federative, Swedish Export Credit do deals; Pfizer widens; Newell Rubbermaid firms

By Aleesia Forni and Cristal Cody

New York, April 6 – KfW, Banque Federative du Credit Mutuel, Swedish Export Credit Corp. and Freddie Mac sold bonds on Wednesday as the primary’s pace picked up somewhat following a slower Tuesday session.

The market managed to log more than $13.5 billion of new high-grade issuance.

Strasbourg, France-based Banque Federative du Credit Mutuel issued $1.75 billion of senior notes in two tranches, while KfW brought the day’s largest new issue, $6 billion of two-year notes.

Swedish Export Credit priced $1.5 billion of three-year bonds, and there was a $1.05 billion issue from New York Life Global Funding, though details were unavailable at press time.

New York-based Pfizer Inc.’s 3.4% senior notes due 2024 ended 5 basis points wider on Wednesday after the company dropped plans to acquire Dublin-based Allergan plc in a $160 billion merger within days of the government’s announcement of new corporate tax inversion regulations.

In other secondary trading, Newell Rubbermaid Inc.’s 4.2% senior notes due 2026 firmed 1 bp over the day.

Target Corp.’s senior notes (A2/A/A-) traded wrapped around issuance to weaker on Wednesday.

Credit spreads softened at the start of the session but improved by the afternoon to close 1 bp tighter at a spread of 78 bps.

KfW sells $6 billion

KfW priced $6 billion of 0.875% two-year notes (Aaa/AAA/AAA) at 99.767, according to an FWP filed with the Securities and Exchange Commission.

Bookrunners were BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Nomura.

The German government-owned development bank is based in Frankfurt.

Banque Federative offering

And Banque Federative du Credit Mutuel sold $1.75 billion of senior notes (Aa3/A/A+) on Wednesday in two parts, a market source said.

There was $750 million of 2% three-year notes sold at Treasuries plus 118 bps.

Also, $1 billion of 2.5% five-year notes priced at Treasuries plus 135 bps.

Bookrunners were Barclays, Credit Suisse Securities, Goldman Sachs & Co. and Morgan Stanley & Co. LLC.

The bank is based in Strasbourg, France.

Swedish Export global bonds

Swedish Export Credit priced $1.5 billion of 1.25% three-year global bonds on Wednesday at 99.938 to yield 1.271%, according to an FWP filed with the SEC.

Barclays, BofA Merrill Lynch, HSBC Securities and Scotia Capital are the bookrunners.

Based in Stockholm, Swedish Export Credit is the lender to Sweden’s export industry.

Freddie Mac Reference notes

Freddie Mac sold $3.25 billion of two-year Reference Notes on Wednesday at Treasuries plus 10.5 bps, according to a company news release.

The issue sold at 99.843 to yield 0.829%.

Citigroup, Nomura and Wells Fargo Securities LLC led the syndicate.

The government-backed mortgage buyer is based in McLean, Va.

Pfizer widens

Pfizer’s 3.4% notes due 2024 widened 5 bps to 66 bps bid on Wednesday, a market source said.

Pfizer sold $1 billion of the notes (A1/AA/) on May 13, 2014 at a spread of Treasuries plus 80 bps.

Pfizer said in a press release the decision to cancel its merger with Allergan was “driven by the actions announced by the U.S. Department of Treasury,” which qualified as an adverse tax law change under the merger agreement.

The Treasury Department announced temporary and proposed corporate tax inversion regulations on Monday.

“We plan to make a decision about whether to pursue a potential separation of our innovative and established businesses by no later than the end of 2016, consistent with our original timeframe for the decision prior to the announcement of the potential Allergan transaction,” Ian Read, chairman and chief executive officer of Pfizer, said in the release.

Pfizer has agreed to pay Allergan a $150 million deal termination fee.

Pfizer is a biopharmaceutical company based in New York City.

Newell Rubbermaid firms

Newell Rubbermaid’s 4.2% notes due 2026 firmed 1 bp over the day to 186 bps bid, a market source said.

The company sold $2 billion of the notes (Baa3/BBB-/BBB-) on March 18 at 235 bps plus Treasuries.

The consumer and commercial products maker is based in Atlanta.

Target mostly unchanged

Target’s 2.5% notes due 2026 were unchanged from issuance at 72 bps bid in the secondary market on Wednesday, a source said.

Target sold $1 billion of the notes on Monday at a spread of Treasuries plus 72 bps.

The retailer’s 3.625% bonds due 2046 were seen 3 bps wider early in the day at 108 bps offered.

Target sold $1 billion of the bonds in Monday’s sale at 105 bps over Treasuries.

The discount merchandise chain is based in Minneapolis.

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