Bank of America, BP Capital, Enbridge among issuers; credit spreads firm; Abbott tightens

By Cristal Cody

Eureka Springs, Ark., Nov. 21 – Several companies tapped the investment-grade bond market on Monday. Most of the holiday week’s offerings are expected to price over the first two sessions, according to market sources.

Bank of America Corp. priced $2 billion of 11-year medium-term subordinated notes, dropping a floating-rate tranche from the final sale.

BP Capital Markets plc brought $2 billion of notes in two tranches: $1.2 billion of 4.183% seven-year notes at a spread of Treasuries plus 110 basis points and $800 million of 3.723% 12-year notes at a spread of 140 bps over Treasuries.

Enbridge Inc. came with $750 million of 4.25% 10-year notes priced at 99.356 to yield 4.33%, or a spread of 200 bps over Treasuries, and $750 million of 5.5% 30-year notes priced at 99.606 to yield 5.527%, or 250 bps plus Treasuries.

Also, New York State Electric & Gas Corp. sold $500 million of 10-year senior notes on Monday.

About $5 billion to $10 billion of volume is expected over the Thanksgiving Day holiday week.

The Markit CDX North American Investment Grade index tightened about 1 bp to end at a spread of 76 bps on Monday.

In the secondary market, Abbott Laboratories’ 3.75% senior notes due 2026 were seen about 4 bps tighter earlier in the day.

Chevron Phillips Chemical Co. LLC’s new 3.4% senior notes due 2026 were quoted trading about 2 bps to 3 bps softer from Friday.

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