Huntington National, PSE&G, McCormick price as pace slows; Bank of America, Citigroup firm

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 3 – Four investment-grade borrowers entered Tuesday’s primary during an unexpectedly quiet session for the bond market.

One source called the lack of activity “surprising,” though he noted there was “nothing exact” to pinpoint during the subdued trading day, which followed a busy open to the month on Monday.

Huntington National Bank offered the largest bond during the session, selling $850 million of three-year fixed-rate notes after scrapping plans for an additional floating-rate tranche.

Smaller-sized deals from Public Service Electric & Gas Co., Arizona Public Service Co. and McCormick & Co., Inc. also priced.

All new deals entering the primary sold inside initial price thoughts, with McCormick seeing the spread on its new 10-year offering firm more than 27 basis points compared to talk.

Tuesday’s new issue activity pushes the week’s total supply to $7.4 billion.

Sources continue to expect around $30 billion of high-grade paper to price to kick off November, with one large merger and acquisition financing deal set to price sometime later during the week, a market source said.

Bank and financial paper traded mostly flat to tighter over the session.

Bank of America Corp.’s 3.875% senior notes due 2025 tightened 6 bps in the secondary market.

Citigroup Inc.’s paper traded 4 bps to 6 bps better.

JPMorgan Chase & Co.’s 4.25% subordinated notes due 2027 firmed 4 bps.

Goldman Sachs Group Inc.’s new paper headed out flat to tighter.

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