Disney, Murphy Oil, ING, RBS among deals in packed primary; Goldman, GE Capital bonds active

By Aleesia Forni and Andrea Heisinger

New York, Nov. 27 - The majority of the sales in the high-grade bond market were large, multi-tranche offerings from names like Walt Disney Co., Murphy Oil Corp. and Health Care REIT, Inc.

Disney priced $3 billion of notes in four maturities.

Murphy Oil sold $1.5 billion of bonds in tranches with five, 10 and 30-year maturities, while Health Care REIT was in the market with a $1.2 billion offering due 2018, 2023 and 2043.

Royal Bank of Scotland Group plc sold $2.25 billion of 10-year subordinated tier 2 notes that are split-rated.

They were joined by another European financial, ING Bank NV, which sold $1.5 billion of 10-year covered bonds.

Defense and national security company Raytheon Co. priced $1.1 billion of 10-year notes.

Alabama Power Co. sold $350 million of 30-year bonds by early afternoon and power company Oglethorpe Power Corp. was in the market with a $250 million sale of 30-year first mortgage bonds.

Export Development Canada priced $1 billion of five-year notes.

Two new issues of preferred stock were announced.

Webster Financial Corp. and Prudential Financial Inc. each are in the market.

Prudential is expected to price a minimum of $250 million in $25-par junior subordinated notes due 2052.

Webster Financial is planning a deal of perpetual bonds.

Neither of the deals had priced as of press time.

Despite equities ending the day down, corporate bonds had no problems pricing at low borrowing rates.

"We had some good ones today," a source who worked on the more than three-times oversubscribed Walt Disney sale said.

Wednesday is looking to be another busy day.

"We should have a few - I know we've talked to three issuers," the source added.

The Markit CDX Series 18 North American Investment Grade index was unchanged at a spread of 95 bps on Tuesday.

Bank paper from Goldman Sachs and Morgan Stanley were among the most actively traded issues on Tuesday, according to a market source.

Goldman Sachs' 6.75% notes due 2037 were 8 bps better on the day, while Morgan Stanley's 5.625% notes due 2019 traded 6 bps wider.

General Electric Capital Corp.'s 5.625% notes due 2018 were also active on the day, closing the session 3 bps tighter.

Investment-grade bank and brokerage credit default swaps costs were mostly wider on Tuesday.

Bank of America's CDS costs widened 2 bps to 147 bps bid, 152 bps offered. Citi's CDS costs were 1 bp wider at 141 bps bid, 146 bps offered. J.P. Morgan's CDS costs were unchanged at 99 bps bid, 104 bps offered. Wells Fargo's CDS costs rose 1 bp to 80 bps bid, 85 bps offered.

Merrill Lynch's CDS costs were 1 bp wider at 143 bps bid, 153 bps offered. Morgan Stanley's CDS costs rose 3 bps to 213 bps bid, 218 bps offered. Goldman Sachs' CDS costs rose 1 bps to 169 bps bid, 174 bps offered.

Disney sees high demand

Walt Disney priced $3 billion of notes (A2/A/A) in four tranches, an informed source said.

There was roughly $10 billion in demand for the trade,

A $500 million tranche of 0.45% three-year notes sold at a spread of Treasuries plus 35 bps.

There was $1 billion of 1.1% five-year notes priced at a spread of 60 bps over Treasuries.

A $1 billion tranche of 2.35% 10-year notes was sold at 80 bps over Treasuries.

Finally, a $500 million sale of 3.7% 30-year bonds priced atTreasuries plus 95 bps.

Bookrunners were Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.

Disney was last in the bond market with a $1.4 billion sale of notes in two tranches on Feb. 9. That offering included a 1.125% five-year note priced at Treasuries plus 47 basis points and a 2.55%10-year bond sold at 62 bps over Treasuries.

The entertainment and media company is based in Burbank, Calif.

ING's covered bonds

ING Bank was in the market with a $1.5 billion sale of 2.625%10-year covered bonds (Aaa//AAA) priced at mid-swaps plus 98 bps, or Treasuries plus 101.8 bps, a market source said.

The sale was done under Rule 144A and Regulation S.

Barclays and Deutsche Bank Securities Inc. were active bookrunners.

The financial services company is based in Amsterdam.

Murphy Oil in three parts

Murphy Oil priced a $1.5 billion sale of notes (Baa3/BBB/) in three tranches , according to an FWP with the Securities and Exchange Commission.

A $550 million tranche of 2.5% five-year notes sold at a spread of Treasuries plus 185 bps.

The $600 million of 3.7% 10-year notes priced at a spread of 210 bps over Treasuries.

The final part was $350 million of 5.125% 30-year bonds sold at Treasuries plus 235 bps.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch were bookrunners.

Proceeds are being used to fund a previously-announced $2.50 per share special dividend and to fund the repurchases of up to $1 billion under a share buyback program.

Murphy Oil was last in the market with a $500 million sale of 4% 10-year notes at 225 basis points over Treasuries on May 15.

The oil and gas exploration and production company is based in El Dorado, Ark.

Health Care's $1.2 billion

Health Care REIT tapped the market for $1.2 billion of notes (Baa2/BBB-/BBB) in three tranches, a source close to the trade said.

A $450 million tranche of 2.25% five-year notes priced at a spread of Treasuries plus 170 bps.

The second part was $500 million of 3.75% 10-year notes sold at 215 bps over Treasuries.

There was also $250 million of 5.125% 30-year bonds priced at a spread of Treasuries plus 240 bps.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and UBS Securities LLC were active bookrunners.

Proceeds are being used to repay about $1.1 billion of certain secured debt of Sunrise Senior Living Inc. to be assumed in connection with a merger. Otherwise, proceeds will be used for general corporate purposes if the merger is not completed.

Health Care REIT was last in the market with a $600 million sale of seven-year notes on March 27.

The real estate investment trust for senior and health care real estate is based in Toledo, Ohio.

Raytheon prices $1.1 billion

Raytheon was in the market with a $1.1 billion offering of 2.5% 10-year notes (A3/A-/A-) priced at Treasuries plus 90 bps, an informed source said.

Active bookrunners were Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC. Proceeds are being used to fund the redemption of $575 million in 1.4% notes due Dec. 2014 and $400 million of 1.625% notes due Oct. 2015, and for general corporate purposes.

Raytheon was last in the market with a $1 billion sale of notes in two parts on Nov. 29, 2011.

The defense and homeland security technology company is based in Waltham, Mass.

RBS's split-rated sale

Royal Bank of Scotland sold $2.25 billion of 6.125% 10-year subordinated tier 2 notes (/BB+/BBB-) to yield Treasuries plus 450 bps, according to a market source and FWP filing with the SEC

RBS Securities Inc. was lead bookrunner, Morgan Stanley & Co. LLC was senior bookrunner and joint lead manager, and Citigroup Global Markets Inc. was joint bookrunner and joint lead manager.

Proceeds are being used for general corporate purposes.

The financial services company is based in Edinburgh, Scotland.

EDC offers five-years

Export Development Canada priced $1 billion of 0.75% five-year notes (Aaa/AAA/) at a spread of Treasuries plus 10 bps, according to an FWP filing with the SEC.

BNP Paribas Securities Corp., Morgan Stanley & Co. LLC, RBC Capital Markets LLC and TD Securities were bookrunners.

Proceeds are being used for general corporate purposes.

EDC was last in the U.S. bond market with a $1 billion sale of three-year notes on June 12.

The government-backed agency for exporters is based in Ottawa.

Alabama Power's long bonds

Alabama Power priced $350 million of 3.85% 30-year senior notes, series 2012C, (A2/A/A+) to yield 107 bps over Treasuries, according to an FWP with the Securities and Exchange Commission.

Barclays, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC were bookrunners.

Proceeds, along with other funds, are being used to pay $500 million of series 2007D 4.85% senior notes due on Dec. 15.

The electric subsidiary of Southern Co. is based in Birmingham, Ala.

Oglethorpe prices $250 million

Oglethorpe Power priced $250 million of 4.2% 30-year first mortgage bonds, series 2012A (Baa1/A/A) at 145 bps over Treasuries, a market source said.

J.P. Morgan Securities LLC was active bookrunner.

Proceeds are being used for long-term financing of a portion of costs associated with participation in two additional nuclear units at the Alvin W. Vogtle Plant located in Burke County, Ga., for long-term financing of the acquisition cost of the Thomas A. Smith Energy facility not expected to be financed by a Rural Utilities Service-guaranteed loan and for general corporate purposes.

Oglethorpe last priced bonds in a $300 million offering of bonds due 2050 on Aug. 16, 2011.

The electric supply cooperative is based in Tucker, Ga.

New preferreds hit market

Two new sales of preferreds were announced early Tuesday.

Prudential Financial is planning a sale of at least $250 million $25-par junior subordinated notes due Dec. 15, 2052, according to a prospectus filed with the SEC.

Price talk is 5.75% to 5.875%, according to a trader.

The notes were quoted at $24.70 bid, 424.75 offered in the gray market.

The notes will be listed on the New York Stock Exchange.

Morgan Stanley & Co. Inc., Bank of America Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC are bookrunners.

Proceeds will be used for general corporate purposes and to redeem some of our outstanding retail medium-term notes, including those issued under the InterNotes(r) program.

Prudential Financial is a Newark, N.J.-based financial services company.

Another smaller deal was announced by Webster Financial. The company is planning to issue series E noncumulative perpetual preferred stock, according to a prospectus filed with the SEC.

Price talk is around 6.5%, a trader said.

The issue was at $24.80 bid in the gray market as of midday.

The preferreds will be issued as depositary shares representing a 1/1,000th interest.

Joint bookrunners are Deutsche Bank Securities Inc., Jefferies and JPMorgan Securities LLC. Proceeds will be used for general corporate purposes, which may include refinancing, reduction or repayment of debt, investments in Webster Bank, NA and other subsidiaries as regulatory capital, financing of possible acquisitions, repurchases of stock, expansion of the business, and investments at the holding company level.

Webster Financial is a Waterbury, Conn.-based bank holding company.

Goldman Sachs firms

Goldman Sachs' 6.75% bond due 2037 closed the session at 316 bps bid, 8 bps tighter compared to Monday's levels.

Goldman priced the $2.5 billion bond at 190 bps over Treasuries in September 2007.

GE Capital tightens

GE Capital's 5.625% notes due May 1, 2018 were 3 bps tighter on Tuesday at a spread of 127 bps bid.

The $4 billion of notes was sold in May 2008.

Morgan Stanley active

The 5.625% notes from Morgan Stanley due 2019 traded actively on Tuesday and closed 6 bps weaker at 206 bps bid.

The bank sold $3 billion of the notes at 225 bps over Treasuries on Sept. 16, 2009.

Stephanie N. Rotondo contributed to this review

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