MetLife, WEA Finance price, Ameriprise, Allegheny Technologies plan sales; MetLife, HP gain

By Andrea Heisinger and Paul Deckelman

New York, May 26 - New issues trickled into the high-grade market Tuesday, including deals from MetLife, Inc. and WEA Finance LLC.

A sale of 30-year senior notes was announced by Ameriprise Financial, Inc., with pricing expected Wednesday. An upcoming sale from Allegheny Technologies Inc. was announced late Tuesday, concurrent with a convertible note offering.

Although it was a sedate start to a short week after the Memorial Day holiday, volume should pick up Wednesday and into Thursday, sources said.

In the secondary arena on Tuesday, a market source said the CDX Series 12 North American high-grade index narrowed by 1 basis point to a mid bid-asked spread level of 146 bps.

Advancing issues trailed decliners by a more than eight-to-seven ratio.

Overall market activity, reflected in dollar volumes, jumped by 85% from Friday's sluggish pre-holiday levels, which partly reflected the shortened session.

Spreads in general were seen tighter, in line with higher Treasury yields; for instance, the yield on the benchmark 10-year government note rose 10 bps to 3.45%

While activity in new or recently priced bonds continued to be the focus of the secondary market, the relatively relaxed pace Tuesday, versus the hectic activity seen last week, translated into less volatile, urgent trading. However, most new issues were seen trading tighter versus where they had priced, including Tuesday's MetLife issue, as well as last week's Hewlett-Packard Co. bonds.

MetLife offers $1.25 billion

In primary activity Tuesday, insurance company MetLife priced $1.25 billion of 6.75% seven-year senior notes at Treasuries plus 375 bps.

It was a "pretty straightforward" deal, a source close to the offering said.

The insurance giant is using proceeds for general corporate purposes.

The company, based in New York City, tapped Barclays Capital and UBS Investment Bank as bookrunners.

WEA prices via Rule 144A

WEA Finance priced an upsized $700 million of 7.5% five-year notes to yield 7.75%. They were sold via Rule 144A.

The size was increased from $500 million, a source said, and came at a spread of Treasuries plus 548.9 bps.

The securities company tapped Barclays Capital, J.P. Morgan Securities and Morgan Stanley & Co. to run the books. It is based in Wilmington, Delaware.

Ameriprise to sell 30-year notes

Minneapolis-based Ameriprise Financial is planning a sale of 30-year senior notes at $25 each, according to a Securities and Exchange Commission filing.

The deal is expected to price Wednesday, a source close to it said.

Banc of America Securities LLC, Citigroup Global Markets, UBS Investment Bank and Wachovia Capital Markets are bookrunners.

The financial planning and services provider plans to use proceeds for general corporate purposes.

Allegheny Technologies plans deal

Allegheny Technologies is planning a $300 million sale of 10-year senior notes, according to a press release and a 424B5 filing with the Securities and Exchange Commission.

The deal is being done concurrently with a $350 million sale of convertible notes due 2014.

Bookrunners for the senior notes are Citigroup Global Markets and J.P. Morgan Securities.

Proceeds will be used to purchase any and all of the company's outstanding 8.375% notes due 2011, with any remainder for general corporate purposes.

The specialty metals producer is based in Pittsburgh.

Pace to pick up

It was a "nondescript" start to the week, a market source said late Tuesday, adding that he anticipates a bump in traffic in the next couple of days.

"It should pick up tomorrow," he said. "Everyone thought it would kind of be slow. Everyone's coming back and trying to get their ducks in order."

Sources differed at the end of the previous week over when the bulk of new deals would come into the market. Some said there would be high-volume Tuesday, with others countering that most companies and syndicate desks would wait until Wednesday to make a "go" call.

"There was nothing wrong with the market [today]," a syndicate source said. "The first day back after [a long weekend] is usually not too crazy."

Market conditions were good enough for two deals to price, but there should be more than that Wednesday. Two sales have already been announced by Allegheny and Ameriprise Financial.

"I think we'll still see quite a few tomorrow, but maybe not at the level of the last couple [of weeks]," a source said.

MetLife moves mildly up

A trader said the new MetLife Inc. 6.75% notes due 2016 traded up to a bid spread over comparable Treasury issues of 365 bps, versus the 375 bps over level at which those bonds had priced earlier in the session to yield 6.793%.

He saw the bonds going out around a 367 bps bid, 362 bps offered context, adding that he "didn't really see much of a follow-on after that 365 print."

Generally, he said, "things had a pretty good tone to them - a little softer, and not as fevered as they had been, but it was the day after a holiday, and they had a fair tone to them."

However, he said, "nothing stands out."

Recent financial bonds tighter

Elsewhere among finance names, a market source saw JP Morgan Chase & Co. Inc.'s 4.65% notes due 2014 trading at 250 bps bid, 245 bps offered, slightly tighter than the 253 bps bid, 248 bps offered seen on Thursday, and in further from the 275 bps over level at which the New York-based investment bank-turned commercial lender had priced that $2.5 billion of bonds on May 13 to yield 4.696%.

The source saw GE Capital Corp.'s 5.90% notes due 2014 trading at 345 bps bid, 340 bps offered, little changed from Thursday's levels, but in from the 387.5 bps spread at which the Fairfield, Conn.-based financial arm of conglomerate General Electric Co. had priced its $2 billion of bonds on May 6.

And the source saw Citigroup Inc.'s 8.50% notes due 2019 at 492 bps bid, 487 bps offered. That was about 5 bps tighter than the levels seen on Thursday, and well in from the 562.5 bps spread at which the New York-based banking giant had priced its $2 billion of bonds on May 15.

Hewlett Packard tightens up

Among the recently priced industrial names, a trader saw Hewlett-Packard's 2.25% notes due 2011 at 100 bps bid, 95 bps offered, well in from the 140 bps over level at which the Palo Alto, Calif.-based maker of computers and peripherals had sold the $1 billion of bonds on Thursday as part of a three-tranche, $2 billion offering.

The other fixed-rate portion of that deal, the $250 million of 2.95% notes due 2012, traded Tuesday at 115 bps bid, 108 offered, versus the 160 bps bid spread at pricing on Thursday.

Verizon Wireless bonds trade tighter

Cellco Partnership/d/b/a/Verizon Wireless Capital LLC's 3.75% notes due 2011 were seen bid at 207 bps over, though with no offered level seen. The New York-based wireless provider's $2.75 billion of those bonds had priced last Tuesday at 290 bps over as part of a $4 billion two-part offering.

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