Nordic Investment, Blackstone, Prospect Capital price; Blackstone tightens; Prospect Capital rises

By Cristal Cody and Aleesia Forni

Virginia Beach, April 2 - Nordic Investment Bank, Blackstone Holdings Finance Co. LLC and Prospect Capital Corp. came to the primary market with new issues on Wednesday.

"It's been quiet all day," one market source said. "We weren't expecting too much today, so it wasn't too much of a surprise."

Nordic Investment Bank brought to market a $1 billion issue of 1.875% five-year notes, which priced at mid-swaps plus 2 basis points.

The notes sold at the tight end of talk, which was set in the area of mid-swaps plus 3 bps.

Meanwhile, Blackstone Holdings Finance sold $500 million of 5% bonds due 2044 at Treasuries plus 145 bps.

The Rule 144A and Regulation S issue was upsized from $350 million, and the notes priced tight of guidance.

Prospect Capital sold $300 million of 5% senior notes due 2019 at par to yield 5.002%, or Treasuries plus 320.9 bps.

Pricing was at the tight end of talk, which was set at 5% to 5.25%.

Also on Wednesday, International Bank for Reconstruction and Development (World Bank) announced plans to issue $1 billion of four-year notes.

The day's new deals bring the week's total supply to more than $12 billion, closing in on earlier predictions of around $15 billion of supply for the week.

Investment-grade bond spreads remained near the tights seen in 2007 on Wednesday but were mostly flat on the day, according to market sources.

The Markit CDX North American Investment Grade series 22 index was unchanged at a spread of 67 bps.

Blackstone's 5% senior notes due 2044 tightened more than 5 bps in the secondary market as the session closed, a trader said.

Prospect Capital's 5% notes due 2019 rose slightly in secondary trading, a trader said.

Nordic Investment Bank prices

Nordic Investment Bank priced $1 billion of 1.875% five-year notes (Aaa/AAA/) on Wednesday with a spread of mid-swaps plus 2 bps, according to a market source and an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.591.

The notes sold at the tight end of talk, which was set in the area of mid-swaps plus 3 bps.

J.P. Morgan Securities LLC, Nomura Securities, TD Securities and HSBC Securities were the lead managers.

The co-lead managers were ANZ Securities, Daiwa Capital Markets Europe Ltd., nabSecurities LLC and Standard Chartered Bank.

The financier for five Nordic countries is based in Helsinki, Finland.

Blackstone upsizes

Blackstone Holdings priced an upsized $500 million issue of 5% 30-year bonds (A+/A+/) on Wednesday at Treasuries plus 145 bps, according to a market source and a company release.

Pricing was at 98.588 to yield 5.091%.

In the secondary market, Blackstone's 5% senior notes due 2044 tightened to 138 bps bid, 137 bps offered, according to a trader.

The notes were sold via Rule 144A and Regulation S.

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

The notes will be fully and unconditionally guaranteed by Blackstone Group LP and its indirect subsidiaries, Blackstone Holdings I LP, Blackstone Holdings II LP, Blackstone Holdings III LP and Blackstone Holdings IV LP.

Blackstone plans to use the proceeds from the offering for general corporate purposes.

The investment and advisory firm is based in New York City.

Prospect Capital new issue

Prospect Capital priced $300 million of 5% 5.25-year senior notes (/BBB/) with a spread of Treasuries plus 320.9 bps, according to a market source and a 497AD filed with the SEC.

The notes priced at par to yield 5.002%.

Pricing was at the tight end of talk, which was set at 5% to 5.25%.

Prospect Capital's 5% notes due 2019 traded slightly higher at 100.375 bid, 100.875 offered in the secondary market, a trader said.

The active bookrunners were Barclays, Goldman Sachs & Co. RBC Capital Markets LLC and UBS Securities LLC.

BNP Paribas Securities Corp. was a passive bookrunner.

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

The financial services company is based in New York City.

World Bank preps deal

World Bank is planning to price $1 billion of four-year notes, according to a market source.

Citigroup Global Markets, Goldman Sachs and Deutsche Bank Securities Inc. are the joint bookrunners.

The issuer is based in Washington, D.C.

Bank/brokerage CDS flat to lower

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

Bank of America Corp.'s CDS costs eased 1 bp to 64 bps bid, 67 bps offered. Citigroup Inc.'s CDS costs were flat at 73 bps bid, 76 bps offered. JPMorgan Chase & Co.'s CDS costs firmed 1 bp to 55 bps bid, 58 bps offered. Wells Fargo & Co.'s CDS costs declined 1 bp to 35 bps bid, 38 bps offered.

Merrill Lynch's CDS costs ended flat at 68 bps bid, 71 bps offered. Morgan Stanley's CDS costs were unchanged at 82 bps bid, 85 bps offered. Goldman Sachs Group, Inc.'s CDS costs firmed 1 bp to 88 bps bid, 91 bps offered.

Paul Deckelman contributed to this review.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.