Primary activity picks up as MasterCard, EDC price; Canadian Natural, MasterCard firm

By Cristal Cody and Aleesia Forni

Virginia Beach, March 26 - Activity in the high-grade primary picked up on Wednesday, with MasterCard Inc., Canadian Natural Resources Ltd. and Export Development Canada pricing new deals during the session.

MasterCard came to market with its first-ever bond offering during the session, selling $1.5 billion of senior notes in two tranches.

There was a $500 million issue of 2% notes due 2019 priced at 40 basis points over Treasuries.

A second tranche was $1 billion of 3.375% 10-year notes sold with a spread of Treasuries plus 72 bps.

Also on Wednesday, Canadian Natural Resources sold an upsized $1 billion of senior notes in two- and 10-year tranches.

The company sold a $500 million issue of two-year floaters at par to yield Libor plus 37.5 bps, while a $500 million tranche of 3.8% notes due 2024 priced at Treasuries plus 110 bps.

Both tranches priced at the tight end of talk.

The session also saw Export Development Canada price a $1 billion issue of notes, though full details were not available at press time.

Wednesday's primary activity more than doubled the week's supply so far, bringing the total to roughly $6.2 billion of new issuance.

One source noted that there is "not much lined up" for the primary market heading into Thursday's session.

Investment-grade bonds headed out mixed on the day, according to a market source.

MasterCard's notes due 2019 and 2024 traded 1 bp tighter on the bid side in aftermarket trading, a source said.

Canadian Natural Resources' 3.8% notes due 2024 firmed 3 bps as the session closed, according to a trader.

MasterCard two-parter

MasterCard priced a $1.5 billion two-part issue of senior notes (A2/A/) in tranches due 2019 and 2024 on Wednesday, according to a market source.

The sale included $500 million of 2% five-year notes sold with a spread of Treasuries plus 40 bps, or 99.617, to yield 2.081%.

There was also $1 billion of 3.375% notes due 2024 priced at 99.571 to yield 3.426%, or Treasuries plus 72 bps.

Proceeds will be used for general corporate purposes.

MasterCard's 2% notes due 2019 traded slightly tighter at 39 bps bid, 36 bps offered in the secondary market, a trader said.

The 3.375% notes due 2024 firmed to 71 bps bid, 67 bps offered.

Citigroup Global Markets Inc., BofA Merrill Lynch, Goldman Sachs & Co., U.S. Bancorp Investments Inc., Barclays, Deutsche Bank Securities Inc., RBS Securities Inc. and Lloyds Securities Inc. were the joint bookrunners.

MasterCard is a Purchase, N.Y., global payment solutions company.

Canadian Natural prices tight

Canadian Natural Resources priced an upsized $1 billion of senior notes (Baa1/BBB+/) in tranches due 2016 and 2024, according to an informed source and an FWP filed with the Securities and Exchange Commission.

There was $500 million of two-year floating-rate notes priced at par to yield Libor plus 37.5 bps.

A second tranche was $500 million of 3.8% notes due 2024 priced with a spread of Treasuries plus 110 bps.

Pricing was at 99.957 to yield 3.805%.

Both tranches sold at the tight end of talk.

Canadian Natural Resources' floating-rate notes due 2016 were not immediately seen in aftermarket trading, according to a trader.

The company's 3.8% notes due 2024 tightened to 107 bps bid, 105 bps offered in the secondary market, the trader said.

Proceeds will be used to repay borrowings under the company's credit facilities.

Calgary, Alta.-based Canadian Natural is a natural gas and crude oil exploration, production, acquisition and marketing company.

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