Nordea, Sunoco price; Prospect Capital eyes deal; new bonds flat to tighter in aftermarket

By Cristal Cody and Aleesia Forni

Virginia Beach, March 31 - The high-grade bond market wrapped up a busy first quarter of 2014 on a relatively quiet note on Monday.

The session saw four issuers price $4.6 billion of paper during the day, bringing the year-to-date total supply to more than $330 billion.

Nordea Bank AB sold the largest deal of the day, bringing to market $2.25 billion of senior notes in three tranches.

The company priced $500 million of floating-rate notes due 2017 to yield Libor plus 48 basis points and $500 million of 1.25% three-year notes at Treasuries plus 48 bps.

A $1.25 billion tranche of 2.375% five-year notes sold at Treasuries plus 75 bps.

Both Sunoco Logistics Partners Operations LP and MidAmerican Energy Holdings Co. were in Monday's market in order to repay debt.

Sunoco Logistics Partners sold $1 billion of senior notes in tranches due 2024 and 2044, according to an informed source.

There was $300 million of 4.25% 10-year notes, which priced at Treasuries plus 155 bps, and $700 million of 5.3% notes due 2044, which sold at 75 bps over Treasuries.

Both tranches sold at the tight end of price talk.

Meanwhile, MidAmerican Energy Holdings sold $850 million of first mortgage bonds in three tranches.

MidAmerican sold a $150 million tap of its 2.4% mortgage bonds due March 15, 2019 at Treasuries plus 47 bps.

A $300 million tranche of 3.5% 10-year mortgage bonds sold at Treasuries plus 83 bps.

Finally, there was $400 million of 4.4% first mortgage bonds due 2024 sold with a spread of Treasuries plus 88 bps.

All three tranches sold at the tight end of talk.

The session also saw Interpublic Group of Cos. Inc. sell an upsized $500 million issue of 4.2% 10-year senior notes at Treasuries plus 150 bps, at the tight end of price talk.

Also on Monday, Prospect Capital Corp. said it is planning to sell an issue of five-year senior notes this week, according to a 497AD filed with the Securities and Exchange Commission.

Investment-grade bond spreads traded better over the session, with new issues flat to tighter in aftermarket trading, according to sources.

The Markit CDX North American Investment Grade series 22 index firmed 1 bp to a spread of 69 bps.

Sunoco Logistics Partners' 4.25% notes due 2024 tightened 4 bps on the offered side as the session closed, according to a trader.

Interpublic Group's 4.2% notes due 2024 tightened 2 bps on the bid side in the secondary market, a trader said.

MidAmerican Energy's three tranches of mortgage bonds traded flat to 2 bps better late in the day, a trader said.

Nordea brings $2.25 billion

Nordea Bank priced $2.25 billion of senior notes (Aa3/AA-/) in three tranches on Monday, a market source said.

A $500 million tranche of floating-rate notes due 2017 sold at par to yield Libor plus 48 bps.

There was also $500 million of 1.25% three-year notes, which sold at 99.722 to yield 1.354%, or Treasuries plus 48 bps.

Finally, $1.25 billion of 2.375% five-year notes sold at 99.57 to yield 2.467%, or Treasuries plus 75 bps.

The joint bookrunners were BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC.

Nordea Bank is a Stockholm-based financial services company.

Sunoco prices tight

Sunoco Logistics Partners Operations priced $1 billion of senior notes (Baa3/BBB-/) in two tranches due 2024 and 2044 on Monday, according to an informed source and a company release.

A $300 million tranche of 4.25% 10-year notes sold at 99.774 to yield 4.278%, or Treasuries plus 155 bps.

There was also $700 million of 5.3% notes due 2044, which sold at 75 bps over Treasuries.

The notes priced at 99.836 to yield 5.311%.

Both tranches sold at the tight end of price talk.

Sunoco Logistics Partners' 4.25% notes due 2024 firmed to 151 bps offered in the secondary market, a trader said.

The company's tranche of 5.3% bonds due 2044 was not immediately seen in aftermarket trading.

The bookrunners are RBS Securities Inc., Barclays, PNC Capital Markets LLC, TD Securities (USA) LLC, BBVA Securities Inc., DNB Markets, Inc., SunTrust Robinson Humphrey, Inc. and JPMorgan.

Proceeds will be used to repay outstanding borrowings under the company's revolving credit facility and for general partnership purposes.

The notes are guaranteed by Sunoco Logistics Partners, LP.

The crude oil transportation, storage and sales company is based in Philadelphia.

MidAmerican three-parter

MidAmerican Energy Holdings priced $850 million of first mortgage bonds (A2/A/A+) in three maturities on Monday, according to a market source and an FWP filed with the SEC.

The sale included a $150 million add-on to the company's 2.4% mortgage bonds due March 15, 2019, which sold with a spread of Treasuries plus 47 bps.

The notes priced at 100.891 to yield 2.206%.

The original $350 million issue priced with a spread of 70 bps over Treasuries on Sept. 12, 2013.

There was also $300 million of 3.5% mortgage bonds due 2024 priced at 99.511 to yield 3.556%, or Treasuries plus 83 bps.

Finally, a $400 million tranche of 4.4% 30-year first mortgage bonds was sold with a spread of Treasuries plus 88 bps.

Pricing was at 99.399 to yield 4.436%.

All three tranches sold at the tight end of talk.

MidAmerican Energy's 2.4% mortgage bonds due 2019 traded better at 45 bps offered in the secondary market, according to a trader.

The 3.5% mortgage bonds due 2024 firmed slightly to 82 bps bid, 80 bps offered.

The 4.4% mortgage bonds due 2044 traded mostly flat at 88 bps bid, 85 bps offered, the trader said.

JPMorgan, BNY Mellon Capital Markets, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC and Deutsche Bank Securities Inc. were the joint bookrunners.

Proceeds will be used to redeem $350 million of the company's 4.65% senior notes maturing Oct. 1, 2014, and any remaining proceeds will be used for general corporate purposes.

The utility is based in Des Moines.

Interpublic new issue

Interpublic Group priced an upsized $500 million issue of 4.2% senior notes (Baa3/BB+/BBB) due 2024 on Monday with a spread of Treasuries plus 150 bps, according to a market source and an FWP filed with the SEC.

Pricing was at 99.812 to yield 4.223%.

Interpublic Group's 4.2% notes due 2024 tightened to 148 bps bid, 145 bps offered in aftermarket trading, a trader said.

The bookrunners were BofA Merrill Lynch, Citigroup Global Markets, JPMorgan and Morgan Stanley & Co. LLC.

Interpublic Group plans to use proceeds to redeem its $350 million of 6.25% notes due 2014, with any remaining proceeds to be used for general corporate purposes.

The global advertising and marketing company is based in New York City.

Prospect Capital eyes offering

Prospect Capital is expected to price an offering of senior notes (/BBB/) due 2019 this week, according to a 497AD filed with the SEC.

The active bookrunners are Barclays, Goldman Sachs, RBC Capital Markets LLC and UBS Securities LLC.

BNP Paribas Securities Corp. is the passive bookrunner, and BMO Capital Markets is the lead manager.

Proceeds will be used to repay debt under the company's credit facility.

The financial services company is based in New York City.

Bank/brokerage CDS mostly lower

Investment-grade bank and brokerage CDS prices were mostly lower, according to a market source.

Bank of America Corp.'s CDS costs tightened 2 bps to 63 bps bid, 66 bps offered. Citigroup Inc.'s CDS costs firmed 2 bps to 76 bps bid, 79 bps offered. JPMorgan Chase & Co.'s CDS costs ended flat at 55 bps bid, 58 bps offered. Wells Fargo & Co.'s CDS costs firmed 2 bps to 36 bps bid, 39 bps offered.

Merrill Lynch's CDS costs firmed 2 bps to 68 bps bid, 71 bps offered. Morgan Stanley's CDS costs tightened 2 bps to 86 bps bid, 89 bps offered. Goldman Sachs Group, Inc.'s CDS costs firmed 2 bps to 93 bps bid, 96 bps offered.

Paul Deckelman contributed to this review.

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