IBM prices $20 billion; Bell Canada, Reinsurance, AvalonBay, Honda, EIB among issuers

By Cristal Cody

Tupelo, Miss., May 8 – International Business Machines Corp. priced a $20 billion eight-part offering of notes in the biggest bond deal of the year on Wednesday, a day after Bristol-Myers Squibb Co. held the distinction of the year’s largest offering after pricing $19 billion of senior notes in nine tranches.

IBM plans to use the proceeds to fund its acquisition of Red Hat, Inc. and for general corporate purposes.

In addition on Wednesday, Bell Canada priced $600 million of 30-year notes.

Reinsurance Group of America, Inc. sold $600 million of 10-year senior notes.

AvalonBay Communities, Inc. priced an upsized $450 million of 10-year medium-term notes during the session.

USAA Capital Corp. sold $400 million of two-year senior notes.

American Honda Finance Corp. brought $300 million of one-year floating-rate medium-term notes to the primary market.

Also on Wednesday, the European Investment Bank priced $3 billion of five-year global notes.

Week to date, more than $44 billion of high-grade bonds have priced.

Heavy volume of about $40 billion to $45 billion was expected by market sources for the week.

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