Pfizer, Barclays among issuers to price about $13 billion of bonds; new paper mostly flat

By Cristal Cody

Tupelo, Miss., May 12 - Monday's session saw nine investment-grade bond issuers tap the primary market with deals totaling more than $13 billion, according to market sources.

"This week is going to be busy," a syndicate source said. "The consensus on the Street is anywhere from $20 billion to $30 billion worth of issuance. We're well on our way with over $13 billion on Monday."

The day's largest deals came from Pfizer Inc., which brought a $4.5 billion five-year part deal late afternoon, Continental Resources, Inc. and Barclays Bank plc.

Continental Resources priced $1.7 billion of senior notes in a two-part Rule 144A and Regulation S eligible offering. The company sold $1 billion of 3.8% senior notes due 2024 at 99.644 to yield 3.843% and $700 million of 4.9% notes due 2044 at 99.717 to yield 4.918%.

Barclays brought a $2.25 billion issue of 3.75% 10-year senior notes at Treasuries plus 110 basis points.

Also in the primary market, Prudential Financial, Inc. priced $1.2 billion of 10-year and 30-year notes and General Electric Capital Corp. placed a $2.5 billion three-part offering of notes, according to a market source. Final pricing terms were not available by press time.

Several electric utilities brought deals over the session.

Florida Power & Light Co. priced $500 million of 3.25% 10-year first mortgage bonds at Treasuries plus 60 bps.

Tampa Electric Co. came by with a $300 million offering of 4.35% 30-year notes at a spread of Treasuries plus 87 bps.

Wisconsin Electric Power Co. sold $250 million of 4.25% 30-year debentures at Treasuries plus 80 bps, while Westar Energy, Inc. brought a $180 million tap of its 4.1% first mortgage bonds due April 1, 2043 at Treasuries plus 82 bps.

In the secondary market, some of the new issues had a "little bit of difficulty and are trading wider," a source said. "Most of the trades are hovering over new issue levels."

GE Capital's notes priced late and were not free to trade by the market close, a source said.

Prudential's new 10-year note was flat from issuance, and the 30-year bond traded about ½ bp tighter, a source said.

Barclays Bank's 3.75% notes due 2024 traded 2 bps better, traders said.

Most of the electric utility bonds traded about 1 bp tighter, according to a trader.

Spreads ended the day mostly better, according to market sources. The Markit CDX North American Investment Grade series 22 index tightened 1 bp to a spread of 63 bps.

Barclays brings $2.25 billion

Barclays Bank sold $2.25 billion of 3.75% 10-year senior notes at 99.967 to yield 3.754%, according to a FWP filing on Monday with the Securities and Exchange Commission.

The notes (A2/A/A) priced at Treasuries plus 110 bps.

Barclays Bank's 3.75% notes due 2024 traded tighter at 108 bps bid, 107 bps offered in the secondary market, according to traders.

Barclays was the bookrunner.

Proceeds will be used for general corporate purposes.

Barclays Bank is a London-based financial services provider.

Continental Resources prices

Continental Resources (Baa3/BBB-/) sold $1.7 billion of senior notes in a two-part Rule 144A and Regulation S offering, according to a press release on Monday.

The company sold $1 billion of 3.8% senior notes due 2024 at 99.644 to yield 3.843%.

The company also priced $700 million of 4.9% notes due 2044 at 99.717 to yield 4.918%.

Additional pricing terms were not available by press time.

The company plans to use the proceeds to repay debt outstanding under its credit facility, to finance the redemption of its 8.25% senior notes due 2019 and for general corporate purposes.

Oklahoma City-based Continental Resources is a crude oil and natural gas development and production company.

Florida Power & Light prices

Florida Power & Light priced $500 million of 3.25% 10-year first mortgage bonds (Aa2/A/AA-) at 99.871 to yield 3.265%, according to a FWP filing with the SEC on Monday.

Florida Power & Light sold the bonds at a spread of Treasuries plus 60 bps.

The 3.25% bonds due 2024 were seen trading at 59 bps bid, 56 bps offered as the session closed, a trader said.

BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc. were the lead managers.

Proceeds will be used to repay all or a portion of $300 million of outstanding debt under a term loan agreement that matures on June 30, to repay a portion of outstanding commercial paper obligations and for other general corporate purposes.

Florida Power & Light is a Juno Beach, Fla.-based electric utility.

Tampa Electric sells 30-years

Tampa Electric sold $300 million of 4.35% 30-year notes at 99.933 to yield 4.354% on Monday, according to a FWP filing with the SEC.

The notes (A2/BBB+/A-) priced at Treasuries plus 87 bps.

BNY Mellon Capital Markets, Mitsubishi UFJ Securities (USA), Inc., RBC Capital Markets LLC, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to repay short-term debt and for general corporate purposes.

The Tampa, Fla.-based electric and gas utility is a subsidiary of TECO Energy, Inc.

Wisconsin Electric prices

Wisconsin Electric Power sold $250 million of 4.25% 30-year debentures at 99.376 to yield 4.287%, or Treasuries plus 80 bps, according to a FWP filing with the SEC on Monday.

Wisconsin Electric Power's 4.25% debentures due 2044 (A1/A-/A+) firmed to 79 bps bid, 76 bps offered in aftermarket trading, according to a trader.

BofA Merrill Lynch, BNP Paribas Securities, Goldman Sachs & Co. and RBC Capital Markets were the bookrunners.

Proceeds will be used to repay short-term debt and for working capital and other corporate purposes.

Milwaukee-based Wisconsin Electric Power is a subsidiary of the Wisconsin Energy Corp.

Westar Energy reopens bonds

Westar Energy sold $180 million in a reopening of its 4.1% first mortgage bonds due April 1, 2043 (A2/A/A-) at 99.675 to yield 4.302%, according to a FWP filing with the SEC on Monday.

The bonds priced at a spread of Treasuries plus 82 bps.

In the secondary market, the 4.1% bonds due 2043 firmed to 81 bps bid, 76 bps offered, a trader said.

Citigroup Global Markets Inc., BofA Merrill Lynch and U.S. Bancorp were the bookrunners.

Westar Energy originally priced $250 million of the bonds on March 21, 2013 at 99.623 to yield 4.122%, or a spread of Treasuries plus 95 bps. The total outstanding is $430 million.

Proceeds from the deal will be used to retire outstanding Kansas Gas and Electric Co. pollution control bonds, which include $108.6 million of 5.3% bonds due 2031, $50 million of 5% bonds due 2031 and $18.9 million of 5.3% bonds due 2031, and for working capital and general corporate purposes.

Westar Energy is a Topeka, Kan.-based electric utility.

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