BofA brings $4.5 billion offering to primary; Bank of America firms; Family Dollar gains

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 21 – Bank of America Corp. came to Thursday’s primary market with $4.5 billion of senior notes, including a 10-year offering of subordinated notes, along with fixed- and floating-rate tranches due 2017 that were added later during the session.

In other primary news, Fannie Mae sold a $3 billion offering of Benchmark Notes due 2017.

The week’s total supply now sits at $6.1 billion, topping what was expected to be around a $5 billion week.

Investment-grade bond spreads tightened over the session with bonds mostly better in secondary trading, sources said.

The Markit CDX North American Investment Grade series 22 index firmed 2 basis points to a spread of 56 bps.

Bank of America’s two tranches of fixed-rate notes priced during the session traded 3 bps to 5 bps tighter, a trader said.

Family Dollar Stores, Inc.’s 5% senior notes due 2021 headed out better in the secondary market after it rejected Dollar General Corp.’s $9.7 billion cash takeover bid announced Monday, a trader said.

Family Dollar said in a release the board rejected the offer on antitrust regulations concerns and still supports a merger with Dollar Tree Inc., which announced in late July it would acquire the discount retailer for $8.5 billion in cash and stock.

Dollar General’s bonds traded mostly flat to slightly higher over the day, according to a trader.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.