JPMorgan sells $1.75 billion; heavy supply forecast; GATX mixed; AT&T, Time Warner firm

By Cristal Cody

Tupelo, Miss., Nov. 3 – JPMorgan Chase & Co. came to the primary market on Friday and sold $1.75 billion of senior fixed-to-floating rate notes.

Deal action is expected to be heavy in the two weeks ahead of the Thanksgiving Day holiday and market sources forecast about $30 billion of supply in the upcoming week.

In the secondary market, JPMorgan’s new notes traded late afternoon wrapped around issuance.

GATX Corp.’s notes (Baa2/BBB) that priced on Tuesday and Thursday were mixed in secondary trading.

In other trading, AT&T Inc.’s bonds (Baa1/BBB+/A-) tightened about 1 bp to 3 bps on Friday.

The company’s $85.4 billion cash and stock acquisition of Time Warner Inc. (Baa2/BBB/BBB+) is expected to close before the end of the year.

Time Warner’s 2.95% notes due July 15, 2026 firmed 3 bps.

The Markit CDX North American Investment Grade 29 index ended mostly flat at a spread of 53 bps.

In its deal, JPMorgan Chase priced $1.75 billion of senior fixed-to-floating rate notes due Jan. 15, 2048 (A3/A-/A+) at a spread of Treasuries plus 115 bps on Friday, according to a market source.

The notes convert to a floating rate of Libor plus 138 bps after the initial fixed-rate period.

The issue tightened from initial price talk in the Treasuries plus 120 bps area.

J.P. Morgan Securities LLC was the bookrunner.

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