Kommuninvest, VeriSign crossover deal price in quiet market; Fidelity National notes tighter

By Aleesia Forni and Andrea Heisinger

New York, April 11 - It was a quiet day in the high-grade bond market, sources said, amid earnings and in a month that is not expected to see large volume.

Sweden's Kommuninvest i Sverige AB priced $500 million of floating-rate notes due 2014 in a private offering under Rule 144A and Regulation S.

There was also a split-rated sale done off the high-yield syndicate from VeriSign, Inc. The company priced $750 million of 10-year senior notes.

"It's a slow month," a source said as explanation for the lack of issuers in Thursday's session.

"We have some [bank] earnings tomorrow and a Treasury auction. Who knows?"

There was a sale of 30-year Treasury bonds that left their price flat, a source said.

With earnings from JPMorgan Chase & Co. and Wells Fargo & Co. ahead of the bell Friday, there is little issuance expected unless one of those two names decides to tap the market.

In the secondary market, Fidelity National Information Services Inc.'s recent two-part deal was trading 8 basis points to 11 bps better, a market source said.

The Markit CDX Series 18 North American Investment Grade index was unchanged at a spread of 82 bps on Thursday.

Investment-grade bank and broker credit default swap costs were unchanged to wider on the session, according to a market source.

Bank of America Corp.'s CDS costs were 2 bps wider at 120 bps bid, 125 bps offered. Citigroup Inc.'s CDS costs were unchanged at 100 bps bid, 105 bps offered. JPMorgan's CDS costs were flat at 81 bps bid, 86 bps offered. Wells Fargo's CDS costs widened 1 bp to 65 bps bid, 69 bps offered.

Merrill Lynch's CDS costs were 2 bps wider at 102 bps bid, 110 bps offered. Morgan Stanley's CDS costs were 2 bps wider at 137 bps bid, 142 bps offered. Goldman Sachs Group, Inc.'s CDS costs rose 2 bps to 124 bps bid, 129 bps offered.

Kommuninvest's floaters

Kommuninvest i Sverige sold $500 million of floating-rate notes due 2014 (Aaa/AAA/AAA) at par to yield Libor flat, a market source said.

Goldman Sachs & Co. was the bookrunner.

Pricing was done under Rule 144A and Regulation S.

Kommuninvest offers funding to municipalities of Sweden and is based in Orebro.

VeriSign's crossover

VeriSign priced an upsized $750 million issue of split-rated 10-year senior notes (Baa3/BB) at par to yield 4 5/8%, according to a market source.

The yield printed at the tight end of yield talk set in the 4.75% area.

J.P. Morgan Securities LLC and BofA Merrill Lynch are the joint bookrunners.

The internet infrastructure services provider plans to use the proceeds for general corporate purposes including to repay its revolving credit facility and to repurchase shares.

Fidelity National firms

Fidelity National Information Services' $250 million tranche of 2% five-year notes was quoted 11 bps better at 124 bps bid, 121 bps offered, a trader said during Thursday's session.

The notes priced at a spread of Treasuries plus 135 bps.

Meanwhile, the $1 billion tranche of 3.5% 10-year notes, which sold at 180 bps over Treasuries on Wednesday, was quoted at 172 bps bid.

Fidelity National Information Services is a Jacksonville, Fla.-based banking and payment technologies company.

Paul A. Harris contributed to this review

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