IntercontinentalExchange, GM Financial price as primary pace resumes; MassMutual firms

By Aleesia Forni

Virginia Beach, Nov. 19 – IntercontinentalExchange Inc., General Motors Financial Co., Inc., Bank of New York Mellon, Bunge Ltd. Finance Corp. and Protective Life Global Funding priced bonds on Thursday, bringing $8.2 billion of investment-grade paper to market.

The uptick in issuance followed a subdued session on Wednesday in light of the release of the Federal Reserve’s October meeting minutes, which pointed to a potential rate increase in December.

Bonds from MassMutual Global Funding II and Horace Mann Educators Corp., two of the handful of deals that priced on Wednesday, were trading better in the secondary on Thursday, a market source said.

Another source noted that Wednesday’s quieter session was a “non-event” and not a sign of broader market weakness.

“It just happened,” he added.

Even with the slower session, the last full week of November has seen more than $28 billion of new issuance.

High-grade credit spreads were leaking wider during the early part of the session on Thursday and continued to weaken over the course of the trading day.

The Markit CDX North American Investment Grade 25 index was 3 basis points wider at a spread of 84 bps.

ICE new issue

In the primary market, IntercontinentalExchange priced a $2.5 billion two-tranche offering of senior notes (A2/A) on Thursday, according to a market source and an FWP filed with the Securities and Exchange Commission.

The company sold $1.25 billion of 2.75% five-year notes at 99.888 to yield 2.774%, or 110 bps over Treasuries.

Pricing was tighter than guidance set in the Treasuries plus 120 bps area, which had tightened from talk in the Treasuries plus 135 bps area.

A $1.25 billion 3.75% tranche of 10-year bonds priced with a 150 bps spread over Treasuries. The notes sold at 99.983 to yield 3.752%.

The 10-year tranche also sold inside of guidance set in the Treasuries plus 160 bps area. Initially, talk was set in the Treasuries plus 175 bps area.

“Strong demand with a solid book,” one market source said.

Bookrunners are BofA Merrill Lynch, Wells Fargo Securities LLC, MUFG and Morgan Stanley & Co. LLC.

Proceeds will be used to fund the acquisition of Interactive Data Holdings Corp.

Atlanta-based IntercontinentalExchange is a network of regulated exchanges and clearing houses for financial and commodity markets.

GM drops floaters

General Motors Financial sold $1 billion of 3.7% five-year senior notes (Ba1/BBB-/BBB-) on Thursday with a spread of 205 bps over Treasuries, after dropping plans for an additional five-year floating-rate tranche.

One source commented that the company received sufficient demand for the fixed-rate portion.

Pricing was at 99.928 to yield 3.716%.

The notes sold at the tight side of guidance set in the range of Treasuries plus 205 bps to 210 bps and tighter than initial talk set in the 215 bps to 220 bps range over Treasuries.

Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the joint bookrunners.

The notes will be guaranteed by the company’s operating subsidiary, AmeriCredit Financial Services, Inc.

General Motors Financial, the Fort Worth-based finance subsidiary of General Motors Co., plans to use the proceeds for general corporate purposes.

BNY prices tight

Bank of New York Mellon sold $800 million of 2.45% senior medium-term notes, series G, at Treasuries plus 80 bps, according to an informed source.

Pricing was at 99.935 to yield 2.464%.

The notes (A1/A+/AA-) sold at the tight side of guidance set in the Treasuries plus 83 bps area, following initial talk in the Treasuries plus 95 bps area.

Bookrunners are BNY Mellon Capital Markets LLC, Credit Suisse, Deutsche Bank, Morgan Stanley and UBS Securities LLC.

BNY Mellon is a New York-based financial services company.

Bunge oversubscribed

Bunge Ltd. Finance attracted an order book that was more than four times oversubscribed for its new $500 million offering of 3.5% five-year senior notes that sold at 185 bps over Treasuries on Thursday.

The notes (Baa2/BBB/BBB) priced at 99.914 to yield 3.519% and are guaranteed by Bunge Ltd.

Price talk was set in the 210 bps area over Treasuries.

Bookrunners are Citigroup, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Mizuho Securities USA Inc.

The White Plains, N.Y.-based agribusiness and food company plans to use the proceeds for general corporate purposes.

Protective Life taps market

And Protective Life Global Funding priced $400 million of 2.7% funding-agreement-backed notes (A2/AA-) due Nov. 25, 2020 on Thursday at Treasuries plus 105 bps, a market source said.

Bookrunners were Barclays and Deutsche Bank.

The issuer is a unit of Protective Life Insurance Co., a Birmingham, Ala.-based insurer.

FHLB global bonds price

In other news on Thursday, Federal Home Loan Banks sold a $3 billion issue of 1% two-year global bonds at par to yield Treasuries plus 12 bps, according to a company news release.

The bonds will mature on Dec. 19, 2017.

Lead managers for the issue are Barclays, Nomura Securities and TD Securities (USA) LLC.

FHLBanks are 12 government-sponsored funding providers.

MassMutual firms

MassMutual Global Funding’s $650 million of 2.45% five-year funding agreement-backed notes (Aa2/AA+/AA+) traded 4 bps tighter on Thursday at 76 bps bid, 73 bps offered, a market source said.

The notes sold at Treasuries plus 80 bps on Thursday.

Bookrunners were Goldman Sachs & Co. and Morgan Stanley.

The issuing unit of Massachusetts Mutual Life Insurance Co. is based in Springfield, Mass.

Horace Mann trades better

And Horace Mann Educators’ $250 million of 4.5% 10-year senior notes (Baa3/BBB/BBB) was quoted 1 bp better at 224 bps bid early Thursday.

The notes priced at Treasuries plus 225 bps on Wednesday via bookrunners JPMorgan and Keefe, Bruyette & Woods.

The Springfield, Ill., insurance company said the proceeds will be used redeem or repay outstanding debt, including its 6.85% senior notes due April 15, 2016 and borrowings under a bank credit facility, as well as for general corporate purposes.

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