New South Wales prices new issue; secondary falls quiet ahead of holiday break; GE Capital busy

By Paul Deckelman and Sheri Kasprzak

New York, Sept. 4 - With the domestic high-grade primary market beginning its three-day Labor Day holiday break early on Friday, that left the field to a single non-U.S. domiciled issuer, as the Australian state of New South Wales, as expected, brought a floating-rate note deal.

Back in the domestic market, traders said that activity was pretty much over almost as soon as it had begun, and said that recent levels for such new deal issuers as Roper Industries Inc., Praxair, Inc., Plains All-American Pipeline LP and Republic Services Inc. were unchanged on the session.

Among existing financials, General Electric Capital Corp, was seen having a busy day.

But overall the investment-grade market settled an uneventful week without much activity, said a market insider.

"It is seriously dead today," said the sellside source reached early in the afternoon.

"Everyone is gone or else leaving early, so there is really nothing going on. Next week is likely to be pretty quiet too. It's a short week. There might be a few things Tuesday or Wednesday.

New South Wales notes price

Still, the primary saw a new deal, despite the quiet session.

New South Wales Treasury Corp. sold $150 million in floating-rate notes on Friday.

The notes (Aaa/AAA/), which are due March 11, 2011, priced at par with a coupon of three-month Libor flat.

J.P. Morgan Securities Ltd. was the bookrunner.

Proceeds will be used to fund general operating expenses.

The issuer, based in Sydney, Australia, is a financing agency for the state of New South Wales.

Secondary goes silent

The day's single new offering was not seen in the secondary market, which fell quiet early in the day, according to a trader.

"There was no movement at all," he said.

"It was the same old names, at the same old levels."

Market participants noted that even though the Securities Industry and Financial Markets Association had announced earlier this year its decision to do away with the traditional recommendation for an early market close on the Friday before Labor Day, that policy change had little impact on marketeers determined to leave early; many shops had only skeleton crews on, and activity was pretty much wrapped up by mid-morning.

Republic, Plains bonds hang in there

Among specific issues, a trader said that Republic Services' 5.50% notes due 2019 were unchanged from their levels Thursday, when the recently priced issue was quoted trading at 205 bps bid, 195 bps offered.

That was well inside the 220 bps over level at which the Phoenix-based solid waste disposal company had priced its $650 million of bonds - upsized from the originally planned $500 million - on Monday.

Meanwhile, a trader said that the new Plains All-American Pipeline 5.75% notes due 2020 were likewise unchanged from Thursday's finish.

Unlike the Republic Services bonds, which started firming when they were freed after pricing, the Houston-based natural gas pipeline company's bonds have been bouncing around, buffeted by investor hopes and fears for energy prices in general and natural gas prices in particular. After pricing on Tuesday, they then widened out on Wednesday and came back in on Thursday, with Friday seeing the same levels.

The bonds priced Tuesday at 245 bps over, and hung around that area in initial aftermarket dealings.

However, the bonds had ballooned out to late levels Wednesday of 278 bps bid, 272 bps offered.

The $500 million of bonds - upsized from $350 million originally - had come back in Thursday, to 240 bps bid, 236 bps offered, and were seen holding those levels on Friday.

Roper, Praxair bonds seen steady

Among the issues which had priced in the previous week, Roper Industries' new bonds were seen trading at a spread of 260 bps bid, 254 bps offered.

That was in from the 280 bps offered level at which the Sarasota, Fla.-based diversified industrial manufacturer had priced its $500 million of 6.25% notes due 2019 - increased from the original $350 million - back on Aug. 26.

Also seen holding steady were Praxair's $400 million of 3.25% notes due 2015. The Danbury Conn.-based supplier of industrial gasses priced its offering on Aug. 27 at 85 bps over Treasuries. They were seen on Thursday, and again on Friday at 92 bid, 86 offered.

GECC bonds seen busy

Among the established bonds, General Electric Capital Corp.'s bonds were seen fairly active for a day which saw mostly quiet trading.

A market source quoted the company's 5.875% notes due 2012 having come in by 35 bps to about the 130 bps level.

Other bonds from General Electric's Fairfield, Conn.-based financing concern were also seen active, with its 3% notes due 2011 racking up over $35 million trades by mid-afternoon.

Its floating-rate notes due 2011 saw mid-afternoon turnover of about $25 million.

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