Union Pacific, Fifth Third, Nevada Power, Huntington Bancshares price; credit spreads recover

By Cristal Cody

Tupelo, Miss., Jan. 28 – Union Pacific Corp. led deal volume in the high-grade bond market on Tuesday with a $3 billion four-tranche offering of registered fixed-rate senior notes that priced tighter than talk.

Fifth Third Bank came by with $1.25 billion of fixed-rate notes in two parts.

Also on Tuesday, Nevada Power Co. sold $725 million of general and refunding mortgage notes in two tranches.

Huntington Bancshares Inc. tapped the primary market with a $750 million 10-year issue, while subsidiary Huntington National Bank also brought a $500 million offering of three-year senior notes.

The new high-grade issues bring week to date volume to more than $6 billion.

About $20 billion to $25 billion of high-grade volume was expected for the week with volume front-loaded ahead of the Federal Reserve’s monetary policy decision on Wednesday.

The Markit CDX North American Investment Grade 33 index recovered from Monday’s weakness to firm nearly 3 basis points to close Tuesday at a spread of 46.64 bps.

In other activity, QVC, Inc. started a roadshow on Tuesday for a $500 million split-rated offering of seven-year senior bullet notes (existing Ba2/existing BBB-/confirmed BBB-).

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