FIS, Credit Agricole, US Airways tap market as Fed minutes released; spreads firm in secondary

By Aleesia Forni and Andrea Heisinger

New York, April 10 - A small number of issuers made their way to the high-grade bond market on Wednesday as others were in earnings blackout.

Fidelity National Information Services, Inc. sold $1.25 billion of bonds in tranches due 2018 and 2023. The last time the company sold debt was in early 2012, and it did so as a high-yield issuer.

France's Credit Agricole SA priced $1.4 billion of notes in three parts under Rule 144A and Regulation S. The trade included a three-year floating-rate note, a three-year fixed-rate note and a five-year bond.

The terms of the offering were not available at press time.

A $1 billion sale of seven-year notes came from France's Caisse d'Amortissement de la Dette Sociale after going overnight from Tuesday.

There was a $1.75 billion sale of five-year notes done privately by Finland's Municipality Finance plc.

Topaz Solar Farms LLC sold $250 million of senior secured notes due 2039.

US Airways, Inc. priced $819.613 million of split-rated class A and B passthrough certificates.

The market was watching for the release of minutes from the last Federal Reserve Federal Open Market Committee meeting in March.

"Don't think it did much," a source said of any effects on the tone. "Weren't a lot of corporates [pricing] anyway."

Some banks are releasing earnings later in the week and could sell bonds after, a syndicate source said. JPMorgan Chase & Co. and Wells Fargo & Co. release earnings before the open Friday. Citigroup Inc. gives its report Monday, and Goldman Sachs Group Inc. does the same Tuesday.

In the preferred stock secondary, MFA Financial Inc.'s newly priced $175 million issue of 7.5% series B cumulative redeemable preferreds freed up late Tuesday, according to a trader. The trader pegged that paper at $24.80.

The Markit CDX Series 18 North American Investment Grade index was 3 basis points tighter at a spread of 82 bps on Wednesday.

Spreads in the secondary market were tighter overall on the day. The recent deal from NiSource Finance Corp. was quoted 5.5 bps better.

Investment-grade bank and brokerage credit default swap costs were tighter on Wednesday, according to a market source.

Bank CDS costs tightened 1 bp to 4 bps on the day, while broker CDS costs firmed 1 bp to 7 bps.

FIS sells two notes

Fidelity National Information Services was in the market with a $1.25 billion sale of senior notes (Baa3/BBB-/BBB-) in two tranches, an informed source said.

A $250 million tranche of 2% five-year notes priced at a spread of Treasuries plus 135 bps.

There was also $1 billion of 3.5% 10-year notes sold at 180 bps over Treasuries.

Barclays, BofA Merrill Lynch and J.P. Morgan Securities LLC were active bookrunners. Passives were Credit Agricole Securities (USA) Inc., RBS Securities Inc., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc.

Proceeds are being used to fund the redemption of $750 million of 7.625% notes due 2017, to pay fees and expenses related to the bond offering and for general corporate purposes.

The sale is guaranteed by current and future domestic subsidiaries of Fidelity National.

The Jacksonville, Fla.-based banking and payment technologies company was last in the U.S. bond market as a high-yield credit with a $700 million sale of 5% 10-year notes priced at par on March 5, 2012.

CADES' $1 billion

Caisse d'Amortissement de la Dette Sociale was in the day's session with a $1 billion sale of 2% seven-year notes (Aa1//AAA) priced at a spread of mid-swaps plus 62 bps, a market source said.

Guidance was in the mid-swaps plus 65 bps area, the source said.

The sale went overnight from Tuesday and was done under Rule 144A and Regulation S.

BofA Merrill Lynch, Barclays and Citigroup Global Markets Inc. were the bookrunners.

The French debt agency is based in Paris.

Muni Finance's five-year

Finland's Municipality Finance priced $1.75 billion of 1.125% five-year notes (Aaa/AAA/) to yield Treasuries plus 43.25 bps, a source close to the trade said.

Pricing was done under Rule 144A and Regulation S.

The bookrunners were Citigroup, Credit Suisse (Europe) Ltd., J.P. Morgan Securities plc and Nomura International plc.

The notes are guaranteed by the Municipal Guarantee Board.

The credit institution provides financial services for municipal sector investments and state-subsidized housing production and is based in Helsinki.

Topaz's secured bonds

Topaz Solar Farms priced a $250 million sale of 4.875% series B senior secured notes due 2039 (Baa2/BBB/BBB) at par to yield 4.875%, a source close to the sale said. The sale went overnight after being announced Tuesday.

The notes sold at a spread of Treasuries plus 308.2 bps.

The average life of the bonds is about 14 years.

Pricing was done under Rule 144A and Regulation S.

Barclays, Citigroup and RBS were the bookrunners.

The unit of First Solar, Inc. is based in Tempe, Ariz.

US Airways' passthroughs

US Airways priced 2013-1 class A and B passthrough certificates totaling $819,613,000, according to an FWP filing with the Securities and Exchange Commission.

The trade included $620,095,000 of 3.95% class A certificates (Ba1/BBB/A-) priced at par to yield 3.95%. They have an expected distribution date of Nov. 15, 2025 with a final maturity on May 15, 2027. The initial average life is 8.5 years.

There was also $199,518,000 of 5.375% class B certificates (B1/B+/BBB+) priced at par to yield 5.375%. The expected distribution date is Nov. 15, 2021, with a final maturity on May 15, 2023. The initial average life is 7.2 years.

Goldman Sachs & Co., Citigroup and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds will be held in escrow, then used to acquire equipment notes issued by the airline and secured by 18 new Airbus aircraft.

The offering is guaranteed by US Airways Group Inc., a commercial airline based in Tempe, Ariz.

NiSource notes firm

NiSource Finance's 4.8% notes due 2044 were quoted at 182 bps bid, 177 bps offered at midday.

The company priced the upsized $750 million issue to yield Treasuries plus 187.5 bps on Wednesday.

The energy holding company is based in Merrillville, Ind.

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