Spectra Energy prices; strong supply forecast for upcoming week; UBS tightens; eBay mixed

By Cristal Cody

Tupelo, Miss., June 2 – Spectra Energy Partners LP tapped the investment-grade primary market early on Friday with a $400 million offering of three-year floating-rate notes as the lone issuer of the day.

Primary action is expected to be strong in the week ahead with about $25 billion to $30 billion of volume forecast, according to market sources on Friday.

Coming up on Monday, UniCredit SpA (Baa1/BBB-/) intends to hold roadshows in the United States, Canada and Asia for a Rule 144A/Regulation S offering of dollar-denominated subordinated notes.

BofA Merrill Lynch, Citigroup Global Markets Inc., HSBC, J.P. Morgan Securities LLC, Societe Generale CIB and UniCredit Capital Markets LLC are the arrangers.

The Markit CDX North American Investment Grade index closed the day about 1 basis point tighter at a spread of 60 bps.

In the secondary market, UBS AG, London Branch’s $5 billion of notes (A1/A+/) sold in three tranches on Thursday traded about 2 bps better on Friday.

eBay Inc.’s senior notes (Baa1/BBB+/BBB) brought to the primary market in a $2.5 billion four-tranche offering on Tuesday were mixed.

UBS firms

UBS, London Branch’s floating-rate notes due June 8, 2020 traded on Friday at Libor plus 55.5 bps bid, 54 bps offered, according to a market source.

The company sold $2 billion of the notes on Thursday at Libor plus 58 bps.

UBS, London Branch’s 2.2% notes due June 8, 2020 tightened to 76 bps bid, 74 bps offered in the secondary market.

The notes priced in a $1.5 billion tranche on Thursday at a spread of Treasuries plus 78 bps.

UBS, London Branch is a London-based financial services company and subsidiary of UBS AG.

eBay mixed

eBay’s 2.15% notes due June 5, 2020 firmed to 72 bps bid, 69 bps offered in secondary trading, a market source said on Friday.

eBay sold $500 million of the three-year notes on Tuesday at a spread of Treasuries plus 75 bps.

The company’s 3.6% notes due June 5, 2027 softened to 142 bps bid, 139 bps offered.

eBay priced $850 million of the 10-year notes at a spread of 140 bps over Treasures.

The online commerce company is based in San Jose, Calif.

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