GE Capital brings $4.5 billion; Rentenbank, Ford, FedEx price; GE flat; Verizon, AT&T soft

By Aleesia Forni and Cristal Cody

Virginia Beach, Jan. 6 – General Electric Capital Corp., Landwirtschaftliche Rentenbank, Ford Motor Credit Co. LLC and FedEx Corp. kicked off the new year by bringing $11 billion of new issuance to the investment-grade bond market.

The largest new issue of the day came from General Electric Capital, which priced $4.5 billion of bonds in three parts.

All tranches sold at the tight end of price talk.

Investors flocked to FedEx’s new $2.5 billion five-part issue of senior notes, with the deal attracting an orderbook that was more than four times oversubscribed.

Meanwhile, Landwirtschaftliche Rentenbank raised $2 billion of bonds due 2025. The notes came at the tight end of talk.

The session also saw Ford Motor Credit issue $2 billion of notes in three parts.

In forward calendar news, the European Investment Bank set price talk for a planned offering of five-year notes during the session.

Sources are expecting an even busier primary for Wednesday and, despite a slow start to the new year, the week is expected to meet earlier forecasts of $25 billion of supply.

Investment-grade bonds and credit spreads remained weak on Tuesday, market sources said.

“I don’t think the market is all that happy with the direction of oil prices,” one source said. “There seems to be a bit of anxiety.”

The Markit CDX North American Investment Grade series 23 index closed the day 2 basis points wider at a spread of 71 bps.

In the secondary market, General Electric Capital’s existing 10-year notes traded flat after widening 8 bps in the previous session, a source said.

Verizon Communications Inc.’s 4.15% senior notes due 2024 eased 4 bps in secondary trading.

AT&T Inc.’s 3.9% notes due 2024 headed out 2 bps weaker, according to a market source.

GE Capital sells $4.5 billion

General Electric Capital sold $4.5 billion of senior notes (A1/AA+/) in two- and five-year tranches on Tuesday, a market source said.

There was $2 billion of floating-rate notes due 2017 priced at par to yield Libor plus 28 bps.

The notes sold at the tight end of talk.

A second tranche was $500 million of floaters due 2020 priced at par to yield Libor plus 62 bps.

Finally, $2 billion of 2.2% notes due 2020 sold at 99.939 to yield 2.213%, or Treasuries plus 75 bps.

The notes sold at the tight end of talk.

Proceeds will be used for general corporate purposes.

Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the bookrunners.

The funding arm of General Electric Co. is based in Fairfield, Conn.

FedEx new issue

FedEx priced $2.5 billion of senior notes (Baa1/BBB/) in five tranches on Tuesday, a market source said.

There was $400 million of 2.3% five-year notes priced at 99.819 to yield 2.338%, or Treasuries plus 85 bps.

A $700 million tranche of 3.2% notes due 2025 sold at 99.845 to yield 3.218%, or Treasuries plus 125 bps.

The company also priced $500 million of 3.9% 20-year bonds at 99.542 to yield 3.933%. The notes sold with a spread of 140 bps over Treasuries.

A $650 million tranche of 4.1% notes due 2045 sold at 99.432 to yield 4.133%, or Treasuries plus 160 bps.

Finally, $250 million of 4.5% 50-year bonds sold at Treasuries plus 200 bps. Pricing was at 99.346 to yield 4.553%.

All five tranches sold at the tight end of price talk.

BofA Merrill Lynch, Citigroup Global Markets and Morgan Stanley are the joint bookrunners.

FedEx intends to use the proceeds from the offering for general corporate purposes.

Located in Memphis, FedEx is a shipping and logistics management company.

Ford three-parter

Ford Motor Credit sold $2 billion of notes (Baa3/BBB-/BBB-) in three tranches on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

A $500 million tranche of floating-rate notes due 2018 priced at par to yield Libor plus 94 bps.

The sale also included $750 million of 2.145% notes due 2018 priced at par, or Treasuries plus 115 bps.

Pricing was at the tight end of talk.

A $750 million tranche of 3.219% notes due 2022 priced at par to yield Treasuries plus 145 bps.

The notes sold at the tight end of price talk.

Barclays, Credit Agricole CIB, Goldman Sachs , JPMorgan and RBC Capital Markets LLC were the bookrunners.

Proceeds will be added to the general funds of Ford Credit and will be available for the purchase of receivables, for loans and for use in connection with the retirement of debt.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based automaker Ford Motor Co.

Rentenbank prices tight

Landwirtschaftliche Rentenbank priced $2 billion of 2% notes (Aaa/AAA/AAA) due 2025 at mid-swaps plus 9 bps on Tuesday, according to an informed source and an FWP filed with the SEC.

Pricing was at the tight end of talk.

Proceeds will be used to finance lending activities, including the refinancing of existing liabilities.

Barclays, Citigroup Global Markets, Deutsche Bank and TD Securities were managing the sale.

The German development agency for agribusiness is based in Frankfurt.

EIB on deck

The European Investment Bank set price talk for a planned offering of five-year notes (Aaa/AAA/AAA) in the area of mid-swaps plus 2 bps, according to a market source.

Deutsche Bank, Goldman Sachs and HSBC Securities are running the books.

The lender for the European Union is based in Kirchberg, Luxembourg.

GE Capital unchanged

General Electric Capital’s existing 3.45% notes due 2024 (A1/AA+/) traded unchanged at 93 bps bid on Tuesday following the company’s new issuance, a market source said.

The issue widened 8 bps in Monday’s session.

GE Capital sold $1 billion of the notes on May 12 at a spread of Treasuries plus 85 bps.

The financial products and services company is based in Norwalk, Conn.

Verizon softer

Verizon’s 4.15% notes due 2024 (Baa1/BBB+/A-) eased 4 bps on Tuesday to 162 bps offered, according to a market source.

Verizon sold $1.25 billion of the notes on March 10, 2014 at Treasuries plus 140 bps.

The telecommunications company is based in New York City.

AT&T eases

AT&T’s 3.9% notes due 2024 (A3/A-/A) headed out 2 bps weaker at 142 bps bid, a market source said.

AT&T sold $1 billion of the notes on March 5, 2014 at a spread of Treasuries plus 125 bps.

The telecommunications company is based in Dallas.

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