Morning Commentary: UPS markets two tranches of senior notes; new Bank of America, Nike paper firms

By Cristal Cody

Eureka Springs, Ark., Oct. 19 – United Parcel Service, Inc. is in Wednesday’s high-grade deal pipeline with an offering of 10- and 30-year senior notes, while new bonds priced in the previous session traded mostly tighter in the secondary market.

Bank of America Corp.’s senior notes (Baa1/BBB+/A) brought to market on Tuesday traded about 1 basis point to 5 bps better.

Nike, Inc.’s $1.5 billion of notes (A1/AA-) priced in two tranches on Tuesday traded about 2 bps tighter.

The three-month Libor yield was stable at 88 bps.

High-grade secondary trading volume totaled $17.25 billion on Tuesday, up from $13.87 billion of issues traded on Monday, according to Trace.

Bank of America firms

Bank of America’s 3.248% notes due 2027 were quoted at 145 bps offered in the secondary market, a source said.

The bank priced $2.5 billion of the notes on Tuesday at a spread of 150 bps over Treasuries.

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

Nike better

Nike’s 2.375% notes due 2026, which priced in a $1 billion tranche at Treasuries plus 65 bps on Tuesday, traded early Wednesday at 63 bps offered, according to a market source.

Nike’s 3.375% notes due 2046 firmed to 91 bps offered in the secondary market.

Nike sold $500 million of the bonds on Tuesday at 93 bps over Treasuries.

The sports footwear and apparel company is based in Beaverton, Ore.

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