Newell Rubbermaid, First Tennessee price; bank paper softens; Wal-Mart firms

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 14 – Newell Rubbermaid Inc. and First Tennessee Bank NA priced new deals on Friday, closing out another lively week for high-grade bonds.

Newell Rubbermaid sold $850 million of notes during the session.

Meanwhile, First Tennessee Bank priced an upsized $400 million of senior notes due 2019.

Even with the Veterans Day holiday shortening the week, the primary saw roughly $37.5 billion of new issuance, pushing November’s total to more than $80 billion.

The week’s supply topped what sources had expected to be around a $25 billion to $30 billion week. Sources are calling for another $30 billion to $35 billion of supply in the week ahead.

Meanwhile, cash continued to pour into investment-grade bond funds, with Lipper reporting net inflows of $3.442 billion for the week ended Nov. 12.

This figure is up slightly from last week’s $3.04 billion of inflows, bringing the year-to-date total inflows to more than $77 billion.

Bank and financial paper widened over the session, a market source said.

Bank of America Corp.’s 4% notes due 2024 traded 4 basis points wider, while Goldman Sachs Group Inc.’s 3.85% notes due 2024 eased 3 bps in secondary trading.

In other trading, Wal-Mart Stores Inc.'s 3.3% notes due 2024 firmed 1 bp over the session.

Verizon Communications Inc.’s 4.15% notes due 2024 traded flat on the day, a market source said.

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