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 in two parts during the session.

Meanwhile, First Tennessee Bank priced an upsized $400 million offering 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.

Looking to the week ahead, even more issuance is expected to hit the investment-grade primary market.

Sources are calling for around $30 billion to $35 billion of supply.

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.

Newell Rubbermaid prices

Newell Rubbermaid sold an $850 million two-tranche offering of senior notes (Baa3/BBB-/) on Friday, an informed source said.

The company priced $350 million of 2.875% notes due 2019 at 99.888 to yield 2.899%, or Treasuries plus 130 bps.

A $500 million tranche of 4% 10-year notes sold at 99.892 to yield 4.013%, or Treasuries plus 170 bps.

Both tranches sold at the tight end of talk.

The bookrunners were Barclays, J.P. Morgan Securities LLC and RBC Capital Markets LLC.

Proceeds will be used to redeem the company’s $250 million 2% notes due 2015 and the remaining $20.7 million of its 10.6% notes due 2019, to purchase its 2020 notes under a tender offer, to reduce borrowings under a commercial paper program, to reduce amounts outstanding under its receivables financing facility and for general corporate purposes, which may include additions to working capital and possible acquisitions.

The consumer and commercial products maker is based in Atlanta.

First Tennessee upsizes

First Tennessee Bank priced an upsized $400 million of 2.95% senior notes (Baa2//BBB-) due 2019 at Treasuries plus 140 bps, a market source said.

The notes priced at 99.768 to yield 3%.

The bookrunners were First Tennessee Bank, Goldman Sachs & Co., JPMorgan and Morgan Stanley & Co. LLC.

The financial services company is based in Memphis.

Bank of America widens

Bank of America’s 4% notes due 2024 (Baa2/A-/A) eased 4 bps over the day to 126 bps offered, a market source said.

Bank of America sold $2.75 billion of the notes on March 27 at Treasuries plus 137 bps.

The financial services company is based in Charlotte, N.C.

Goldman Sachs eases

Goldman Sachs’ 3.85% notes due 2024 (Baa1/A-/A) headed out 3 bps weaker at 140 bps offered, a market source said.

Goldman Sachs sold $2.25 billion of the notes on June 30 at Treasuries plus 135 bps.

The financial services company is based in New York City.

Wal-Mart improves

Wal-Mart’s 3.3% notes due 2024 (Aa2/AA/AA) firmed 1 bp on Friday to 74 bps offered, a source said.

The company brought a $500 million add-on to the notes on Oct. 7 at Treasuries plus 73 bps.

Wal-Mart originally sold $1 billion of the notes at Treasuries plus 73 bps on April 15, 2014.

The discount retailer is based in Bentonville, Ark.

Verizon unchanged

Verizon’s 4.15% notes due 2024 (Baa1/BBB+/A-) traded unchanged on the day at 132 bps offered, according to a market source.

Verizon sold $1.25 billion of the notes on March 10, 2014 at a spread of Treasuries plus 140 bps.

The telecommunications company is based in New York City.

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