Abbey National sells new paper, Goldman, Orix reopen; BP bonds widen, Total Capital tighter

By Andrea Heisinger and Cristal Cody

New York, April 20 - Goldman Sachs Group Inc. and Orix Corp. each reopened bond issues on Wednesday while Abbey National Treasury Services plc priced new paper in the busiest day in the market yet this week.

A day after announcing earnings, Goldman retapped its floating-rate notes due in February 2014 to add $1 billion. This brings the amount outstanding up to $2 billion.

Santander UK guaranteed the notes of its unit Abbey National Treasury Services which sold $2.5 billion in three parts including fixed- and floating-rate notes.

Japan's Orix reopened its issue of 5% notes due 2016 to add $400 million. They sold in line with price guidance.

The market "wasn't much better" as far as tone, a source said, but it was good enough for a name like Goldman Sachs to issue after coming out of earnings blackout.

Market sources who worked on the day's trades said the market wasn't going to be much better or worse on Thursday so companies were given the green light on Wednesday morning.

"I don't know what we'll see tomorrow," the source said. It's likely to be quiet as most issuers are just chalking up this week as a loss and waiting until the coming one.

Corporate trading was "very quiet" on Wednesday ahead of Thursday's early market close, a trader said.

Overall, though, bonds were seen trading 1 bp to 2 bps better, a trader said.

Oil climbed to near an eight-day high, though activity in high-grade bonds in the energy sector stayed light, one trader said.

"Very quiet but 2 to 3 basis points better," the trader said.

Wednesday marked the one-year anniversary of BP plc's oil disaster in the Gulf of Mexico. The company's bonds traded 2 bps wider on the day, a source said

Oil giant Total Capital SA's notes due 2016 were tighter, a trader said.

Overall investment-grade Trace volume was flat to slightly lower on Wednesday at about $12 billion, a market source said.

The Markit CDX Series 14 North American investment-grade index firmed 2 bps to a spread of 93 bps, according to Markit Group Ltd.

Treasuries dropped on Wednesday as stocks rallied late in the day. The 10-year note yield rose 3 bps to end at 3.4%. The 30-year bond yield also climbed 3 bps to 4.46%.

Abbey sells three tranches

Abbey National Treasury Services plc sold $2.5 billion of notes (Aa3/AA/AA-) in three tranches, an informed source said.

The $1 billion of three-year floating-rate notes priced at par to yield three-month Libor plus 158 bps.

A second tranche was $500 million of 2.875% three-year notes priced at a spread of Treasuries plus 180 bps.

The $1 billion of 4% five-year notes priced at Treasuries plus 190 bps.

The notes are guaranteed by Santander UK plc.

Bookrunners were Credit Suisse Securities (USA) LLC, J.P. Morgan Securities Inc., Santander and UBS Securities LLC.

Proceeds are being used for general corporate purposes.

Goldman reopens floaters

Goldman Sachs Group reopened its issue of floating-rate notes due 2014 to add $1 billion, said a source away from the sale.

The notes (A1/A) were priced at 100.281 with a coupon of three-month Libor plus 100 bps to yield Libor plus 90 bps. This was in line with talk in the Libor plus 90 bps area.

Total issuance is $2 billion including $1 billion sold on Feb. 2 at Libor plus 100 bps.

Goldman Sachs & Co. was bookrunner for the reopening.

The financial services company is based in New York City.

Orix adds $400 million

Japan's Orix reopened its issued of 5% notes due 2016 to add $400 million, a market source said late in the day.

They were talked in the 240 bps area and priced in line with that.

The notes (A3/A-) sold at a spread of Treasuries plus 240 bps.

Total issuance is $800 million including $400 million priced on Jan. 5 at 290 bps over Treasuries.

Merrill Lynch, Morgan Stanley & Co. Inc. and UBS Investment Bank were bookrunners.

Proceeds are being used for general corporate purposes.

The joint stock corporation is based in Tokyo.

BP wider

BP's bonds traded 2 bps wider on the day of the anniversary of the Gulf oil spill, a source said Wednesday.

BP Capital Markets plc's 4.742% notes due 2021 were quoted at 117 bps bid, 113 bps offered, wider than the previous day but tighter from issuance price. The notes priced on March 8 at 120 bps over Treasuries.

Total Capital firms

Total Capital's notes tightened in secondary trading, a source said.

The 2.3% global notes due 2016, which priced at Treasuries plus 90 bps on Sept. 8, 2010, traded Wednesday at 65 bps bid, 60 bps offered.

The oil and gas company is based in Courbevoie, France.

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