IADB, Glencore, Societe Generale, MassMutual enter primary; GM Financial tightens

By Aleesia Forni and Cristal Cody

Virginia Beach, April 8 – Inter-American Development Bank, Glencore Funding LLC, Societe Generale SA and MassMutual Life Insurance Co. came to Wednesday’s primary market with new bond deals.

IADB offered $3 billion of global notes at the tight end of talk.

Glencore Funding sold a $2.25 billion issue of senior notes in four tranches. The fixed-rate tranches of the new issue priced between 10 basis points to 20 bps tight of initial price thoughts.

Demand was solid for Societe Generale’s upsized $1.5 billion subordinated offering, which saw around $6.5 billion of orders.

The session also saw MassMutual Life Insurance price an upsized $500 million issue of surplus notes.

Nederlandse Waterschapsbank NV joined the forward calendar on Wednesday, announcing talk for a benchmark offering of seven-year notes.

In total, the primary market has hosted $13 billion of new issuance this week, already topping what was predicted to be around $10 billion of supply.

In other primary action, AltaGas Ltd. (/BBB/DBRS: BBB) sold an unusual $125 million dollar-denominated offering of two-year floating-rate notes in the Canadian high-grade primary market on Wednesday.

“It’s very rare to see a U.S. dollar deal,” a source said.

The Calgary-based energy company priced the notes due April 17, 2017 at Libor plus 85 bps. BMO Nesbitt Burns Inc. and TD Securities Inc. were the lead managers.

Investment-grade bonds were mixed in quiet secondary trading over the day with new issues mostly tighter following the release of the Federal Reserve’s policy meeting minutes, according to market sources.

General Motors Financial Co., Inc.’s senior notes (Ba1/BBB-/BB+) brought on Tuesday tightened 8 bps to 10 bps in the secondary market.

Monsanto Co.’s 2.85% senior notes due 2025 traded about 1 bp tighter over the day.

“Not much change there,” a trader said.

In other trading, outstanding bonds from Mylan Inc. and Perrigo Finance plc widened about 10 bps on news of a potential merger between the parent companies.

Spreads were modestly softer as the session ended.

The Markit CDX North American Investment Grade series 23 index headed out less than 1 bp softer at a spread of 60 bps.

IADB global notes

Inter-American Development Bank sold a $3 billion issue of 1.75% seven-year global notes (Aaa/AAA) at mid-swaps plus 1 bp on Wednesday, according to a market source.

The notes were guided in the area of mid-swaps plus 2 bps.

BofA Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co. and TD Securities were the joint bookrunners.

The issuer provides financing for Latin American and Caribbean countries and is based in Washington, D.C.

Glencore prices $2.25 billion

Glencore Funding sold $2.25 billion of senior notes (Baa2/BBB/) on Wednesday in four tranches due 2018, 2020 and 2025, according to a market source.

The sale includes $250 million of three-year floating-rate notes priced at par to yield Libor plus 106 bps.

There was also $500 million of 2.125% three-year fixed-rate notes priced with a spread of Treasuries plus 130 bps. Pricing was at 99.931 to yield 2.149%.

The notes sold at the tight end of the 135 bps area over Treasuries guidance.

A $1 billion 2.875% note due 2020 sold at 99.903 to yield 2.896%, or 155 bps over Treasuries.

Guidance was set in the 160 bps area over Treasuries.

Finally, $500 million of 4% notes due 2025 priced at 99.13 to yield 4.107%. The issue priced with a spread of 220 bps over Treasuries.

Pricing was at the tight end of guidance set in the Treasuries plus 225 bps area.

The bookrunners for the Rule 144A and Regulation S deal were BofA Merrill Lynch, RBC Capital Markets LLC, Societe Generale and UBS Securities LLC.

The funding vehicle for Glencore International plc, a privately held supplier of commodities and raw materials to industrial consumers, is based in Baar, Switzerland.

Societe Generale sub notes

Societe Generale sold $1.5 billion of 4.25% tier 2 subordinated notes with a spread of 255 bps over Treasuries on Wednesday, according to an informed source.

The Rule 144A and Regulation S deal priced at the tight end of talk.

Pricing was at 98.439 to yield 4.45%.

Societe Generale, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBS Securities Inc. were the bookrunners.

The financial services company is based in Paris.

MassMutual upsizes

MassMutual Life Insurance sold an upsized $500 million issue of 4.5% 50-year surplus notes on Wednesday to yield Treasuries plus 207 bps, a source said.

The deal’s size was increased from $300 million.

The paper sold at the tight end of guidance in the 212 bps over Treasuries area.

The notes (A1/AA-/AA-) were priced at 98.184 to yield 4.593%.

The deal was done under Rule 144A and Regulation S.

Bookrunners were Deutsche Bank Securities, Barclays, Citigroup Global Markets and Morgan Stanley & Co. LLC.

MassMutual is a Springfield, Mass.-based insurance company.

NWB sets talk

Nederlandse Waterschapsbank is eyeing a benchmark offering of seven-year notes (Aaa/AA+/), an informed source said.

The notes are guided in the mid-swaps plus high-teens bps area.

BofA Merrill Lynch, BNP Paribas Securities, Nomura and TD Securities are the joint bookrunners.

The notes will be sold via Rule 144A and Regulation S.

The financial services company for the public sector is based in the Hague, the Netherlands.

FHLB passes

The Federal Home Loan Bank System will not issue Global Notes in April, according to a company news release.

The government-sponsored banks for financial institutions are based in Washington, D.C.

GM Financial stronger

General Motors Financial’s 2.4% notes due 2018, priced on Tuesday in an $850 million offering at Treasuries plus 160 bps, firmed to 150 bps bid, 146 bps offered, a trader said.

The company’s 3.45% notes due 2022 tightened to 174 bps bid, 170 bps offered in secondary trading, the trader said.

The issue priced in a $1.25 billion offering on Tuesday at a spread of Treasuries plus 182 bps.

General Motors Financial is a Fort Worth-based finance subsidiary of General Motors Co.

Monsanto improves

Monsanto’s 2.85% notes due 2025 firmed about 1 bp over the day to 97 bps bid, a trader said.

The company sold $300 million of the 10-year notes (A3/BBB+/A-) on Tuesday at Treasuries plus 100 bps.

Monsanto is a St. Louis-based agricultural products company.

Mylan, Perrigo widen

Mylan N.V. announced on Wednesday that it has offered to acquire Perrigo Co. plc for about $29 billion, or $205 per share, in cash and company stock.

Mylan’s 3.125% notes due 2023 traded at 155 bps bid over the day, a trader said.

“They were Tracing yesterday in the 130s and before that 140 bps,” the trader said.

Mylan Inc., a Canonsburg, Pa.-based subsidiary of the Potters Bar, England-based developer and manufacturer of generic pharmaceutical products, sold $750 million of the notes on Dec. 12, 2012 at Treasuries plus 145 bps.

Perrigo Finance’s 3.9% senior notes due 2024 widened to 160 bps bid on Wednesday, a trader said.

The notes traded in the 150 bps area on Tuesday.

Perrigo Finance, a Dublin-based financing arm of Perrigo, sold $700 million of the notes on Nov. 24 at Treasuries plus 165 bps.

Perrigo is a Dublin-based developer and manufacturer of over-the-counter and general prescription pharmaceutical products and nutritional products.

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