Intel sells $6 billion, joins ConocoPhillips, Sherwin-Williams, others in primary market

By Aleesia Forni and Andrea Heisinger

New York, Dec. 4 - Issuers crammed into the market in the continued hunt for record-low borrowing rates on Tuesday, including highly rated names like Intel Corp., ConocoPhillips Co. and Sherwin-Williams Co.

Intel priced a massive $6 billion trade in four parts after a tranche of 20-year notes was added prior to the launch. The company was raising money for purposes including common stock repurchases.

ConocoPhillips Co. priced $2 billion of five-year notes and 10-year notes that are guaranteed by ConocoPhillips.

Paint and coatings maker Sherwin-Williams priced $1 billion in tranches due 2017 and 2042 after the offering was upsized from $750 million.

There was a $600 million trade in two parts from Rowan Cos., Inc. The sale included a reopening of 10-year notes and a new 30-year bond, each of which sold 10 basis points tighter than talk.

Camden Property Trust priced an upsized $350 million of 10-year notes.

Among financials, BNP Paribas SA sold $750 million of five-year notes at the tight end of guidance, and Principal Life Insurance Co. was in the market with a $500 million offering of three-year notes.

The size of the Principal trade, done under Rule 144A and Regulation S, was doubled from $250 million. Terms of the deal were not available at press time.

There were two sales of floating-rate notes on Tuesday from Toyota Motor Credit Corp.

The day's healthy amount of corporate issuance - totaling $11.7 billion - helped push the year's total past $1 trillion, a market source said.

"We were pretty swamped out there, but everyone wanted in on most of the deals," he said. "We had drops because some just didn't want the lower yields."

Many of the sales saw spreads sink 5 bps or more lower than initial guidance due to demand, which was a shift from the previous week when trades were being priced in line with talk.

Wednesday's calendar of offerings remains unclear, but industrial names and those outside of the financial sector are fair game, a syndicate source said well after the close.

The Markit CDX Series 18 North American Investment Grade index was unchanged at a spread of 100 bps on Monday.

In trading, one market source quoted each tranche of Intel's new issue 4 bps better in the gray market.

Bank paper from Goldman Sachs and Morgan Stanley was trading actively on Tuesday, a market source said.

Goldman Sachs' 6.15% notes due 2018 and Morgan Stanley's 5.625% bond due 2019 were both quoted 1 bp better at the end of the session.

Goldman Sachs' bond due 2037 was quoted 7 bps tighter.

Another big mover on the day came from General Electric Co.'s 5.25% notes due 2017, while Hewlett-Packard Co.'s established bonds continue to be "very active."

HP's spreads were "another 5 bps better" on Tuesday, with the Palo Alto, Calif., computer, printing and imaging company's 3.65% notes due 2022 trading at 320 bps bid, 310 bps offered, a trader said.

Still, the trader added that it had "been a quiet start to the week" overall in the secondary.

In recent deals, People's United Financial, Inc.'s new bonds were trading 11 bps better during the session.

Intel's huge offering

Intel priced $6 billion of senior notes (A1/A+/) in a reallocated four tranches, a source away from the trade said.

The size of the sale was increased to include a fourth tranche of 20-year notes.

A $3 billion tranche of 1.35% five-year notes priced at a spread of 75 bps over Treasuries. The notes priced tighter than guidance in the 80 bps area.

The notes were quoted at 71 bps bid, 68 bps offered in the gray market.

There was $1.5 billion of 2.7% 10-year notes sold at 115 bps over Treasuries, which was in line with talk.

A trader saw the notes 4 bps tighter in the gray market at 111 bps bid, 108 bps offered.

A $750 million tranche of 4% 20-year notes priced at a spread of Treasuries plus 130 bps. The spread came tighter than talk that was in the 135 bps area.

The notes were seen at 126 bps bid, 123 bps offered in the gray market.

Finally, there was $750 million of 4.25% 30-year bonds sold at Treasuries plus 150 bps. Pricing was in line with guidance.

The notes were quoted in the gray market at 146 bps bid, 142 bps offered.

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

Proceeds will be used for general corporate purposes and the repurchase of common stock under an existing program.

Intel last tapped the U.S. bond market with a $5 billion offering of bonds in three parts on Sept. 14, 2011. That deal included a 1.95% five-year note priced at 110 bps over Treasuries, a 3.3% 10-year note sold at 135 bps over Treasuries and a 4.8% 30-year bond priced at 160 bps over Treasuries.

The semiconductor chip maker is based in Santa Clara, Calif.

Sherwin-Williams' $2 billion

Sherwin-Williams has priced an upsized $1 billion of senior notes (A3/A/A) in two parts, an informed source said.

The size of the trade was increased from $750 million. There was about $3.75 billion in investor interest for the offering, the source said.

The sale included $700 million of 1.35% five-year notes sold at a spread of Treasuries plus 75 bps. The notes were priced tighter than initial guidance in the 80 bps area, the source said.

A second part was $300 million of 4% 30-year bonds priced at 125 bps over Treasuries. The bonds sold lower than talk in the 135 bps area.

Bookrunners were Citigroup Global Markets Inc., JPMorgan and Wells Fargo Securities LLC.

Proceeds will be used for general corporate purposes, including to repay all borrowings under a domestic commercial paper program and to pay a portion of the cash purchase price of the Consorcio Comex, SA de CV and Conaxe, SA de CV acquisition upon completion.

Sherwin-Williams was last in the market with a $500 million sale of 3.125% five-year notes priced at 82 bps over Treasuries on Dec. 16, 2009.

The paint and coatings company is based in Cleveland.

Rowan sees investor drops

Rowan tapped the market for $600 million of senior notes (Baa3/BBB-/) in two maturities, an informed source said.

There was about $3 billion on the books but "a significant number of drops after the launch," the source said. Those drops mostly happened after the spreads were pushed tighter, they added.

The offering included a reopening of 4.875% notes due on June 1, 2022 to add $200 million. Pricing was at a spread of Treasuries plus 210 bps. Pricing was 10 bps tighter than talk in the 220 bps area.

Total issuance is $700 million, including $500 million priced on May 16, with a spread of Treasuries plus 320 bps.

There was also a $400 million tranche of new 5.4% 30-year bonds sold at a spread of Treasuries plus 265 bps. The notes also were priced tighter than guidance in the 275 bps area.

Active bookrunners were Barclays, Citigroup, RBC Capital Markets LLC and Wells Fargo Securities.

Proceeds will be used for general corporate purposes, including capital expenditures.

The notes are guaranteed by Rowan Cos. plc.

The contract drilling services provider is based in Houston.

ConocoPhillips taps market

ConocoPhillips Co. priced $2 billion of notes (A1/A/A) in two tranches during Tuesday's session, an informed source said.

The sale included $1 billion of 1.05% five-year notes sold at 99.771 to yield 1.097% with a spread of Treasuries plus 47 bps.

A $1 billion tranche of 2.4% 10-year notes priced at 99.902 to yield 2.411% with a spread of 80 bps over Treasuries.

The issue is guaranteed by ConocoPhillips.

Bank of America Merrill Lynch, Barclays, JPMorgan and RBS Securities Inc. were the active bookrunners. Passive bookrunners were Citigroup, Deutsche Bank Securities Inc., DNB NoR Markets and Mitsubishi UFJ Securities (USA) Inc.

Proceeds will be used for general corporate purposes, possibly including reducing outstanding commercial paper.

The Houston-based energy company was last in the market with a $3 billion sale in three tranches on May 18, 2009. That offering included a 4.6% five-year note sold at 250 bps over Treasuries and a 6% 10-year note priced at 285 bps over Treasuries.

Camden Property prices tight

Camden Property Trust was in the market with an upsized $350 million sale of 2.95% 10-year notes (Baa1/BBB/BBB+) priced to yield Treasuries plus 147 bps, a market source said.

Pricing was at the tight end of guidance in the 147 bps to 153 bps range, the source said. The size of the trade was increased from $250 million.

Bank of America Merrill Lynch, JPMorgan, U.S. Bancorp Investments Inc. and Wells Fargo Securities were the bookrunners.

Proceeds will be used to repay the outstanding balance on an unsecured line of credit and for general corporate purposes.

Camden was last in the market with a $500 million sale of notes in two tranches on May 31, 2011. That sale included a 4.625% 10-year note priced at 165 bps over Treasuries.

The real estate investment trust for apartment communities is based in Houston.

BNP Paribas' five year

BNP Paribas was in the market with a $750 million sale of five-year notes (A2/A+/A+) sold at 143 bps over Treasuries, a source away from the trade said.

The notes sold at the tight end of guidance in the 143 bps to 147 bps range.

Full terms of the trade were not available at press time.

BNP Paribas Securities Corp. was the bookrunner.

The financial services company is based in Paris.

Toyota's two sales

Toyota Motor Credit priced $275 million of two-year floating-rate notes (Aa3/AA-/) at par to yield Libor plus 17 bps and $225 million of one-year floaters at par to yield Libor flat, according to FWP filings with the Securities and Exchange Commission.

Agents were Bank of America Merrill Lynch and Barclays on the two-year floaters and RBC Capital Markets and Loop Capital Markets LLC for the one-year floaters.

The funding arm of Toyota is based in Torrance, Calif.

GE widens

The secondary market saw General Electric's 5.25% notes due 2017 weaken 1 bp to 86 bps bid.

The company sold $4 billion of the notes at a spread of 140 bps over Treasuries in November 2007.

Goldman Sachs tightens

Meanwhile, Goldman Sachs' bond due 2018 tightened 1 bp to 216 bps bid on Tuesday.

The bank priced $1.5 billion of 6.15% 10-year bonds in April 2008 at Treasuries plus 237.5 bps.

Goldman 2037's active

Goldman Sachs' 6.75% bond due 2037 closed the session at 308 bps bid, 7 bps tighter compared to Monday's levels.

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

Morgan Stanley better

The 5.625% notes from Morgan Stanley due 2019 traded actively on Tuesday and closed 1 bp better at 195 bps bid.

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

People's United firms

People's United's new notes due 2022 were quoted 11 bps tighter at 196 bps bid, 191 bps offered, a trader said.

The company was in the market Monday with an upsized $500 million sale of 3.65% 10-year senior notes that priced at Treasuries plus 207 bps.

The bank and financial services company is based in Bridgeport, Conn.

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