Handelsbanken prices two bonds as Wells Fargo offers preferreds; Ventas Realty notes weaker

By Aleesia Forni and Andrea Heisinger

New York, March 15 - A sale from Svenska Handelsbanken AB priced during Friday's session following a full week of investment-grade bond issues.

The Stockholm-based bank and financial services company sold an upsized $1.85 billion of bonds due 2016 and 2018. The tranche of three-year floating-rate notes was upsized, increasing the sale from $1.5 billion.

The terms of the deal were not immediately available at press time.

An upsized $575 million sale of $25-par perpetual preferred stock was done by Wells Fargo & Co. The size was initially a minimum of $250 million.

Issuance in the coming week is expected to be restrained. Most syndicate desks expect between $15 billion and $20 billion.

"We should see some more financials," a source said.

Another source projected a $20 billion week but then added that the figure was "being generous."

The Markit CDX Series 18 North American Investment Grade index widened 1 basis point to a spread of 79 bps on Friday.

In secondary action, a market source saw Ventas Realty LP's recent notes trading slightly wider on the day.

Wells Fargo brings preferreds

Wells Fargo priced an upsized $575 million offering of 5.25% series P class A noncumulative perpetual preferred stock at par of $25, a market source said.

"It's kind of odd that they are bringing a deal on a Friday," he said. "That would lead me to believe that we have a very strong new issue market."

The trader added that once all the banks "clear their stress tests," more new issues - and probably more redemptions - will be on the horizon.

Wells Fargo said it intended to sell at least $250 million of the preferreds. Price talk was 5.25% to 5.375%, according to a trader.

The trader saw the preferreds at $24.65 in the midday gray market. Just ahead of the close, the preferreds were quoted at $24.75 to $25.00 by a trader.

Wells Fargo Securities LLC is the bookrunner.

Wells Fargo will apply to list the new securities on the New York Stock Exchange under the ticker symbol "WFCPP."

Proceeds will be used for general corporate purposes.

Wells Fargo is a San Francisco-based financial institution.

Ventas notes weaken

The secondary market saw Ventas Realty's upsized issue trade 1 bp wider during Friday's session, trading at 133 bps bid, 130 bps offered.

Ventas sold $500 million of the 2.7% seven-year senior notes at a spread of 132 bps over Treasuries on Thursday.

The real estate investment trust for housing and health-care properties is based in Chicago.

Stephanie N. Rotondo contributed to this review

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