American Honda, Penske, Trans-Allegheny price; telecom mixed; spreads weaken

By Aleesia Forni

Virginia Beach, Dec. 8 – American Honda Finance Corp., Penske Truck Leasing Co. LP, Trans-Allegheny Interstate Line Co. and AIG Global Funding issued bonds during a mostly positive session for investment-grade bonds.

American Honda sold $1.5 billion of three-year senior notes, while Trans-Allegheny Interstate Line and AIG Global Funding each brought upsized offerings of senior notes.

Oklahoma Gas & Electric Co. was also in the market with a $250 million offering of notes due 2044.

Sources are expecting around $15 billion of new issuance this week compared to last week’s $49 billion.

Investment-grade credit spreads opened softer and ended the day 2 basis points weaker, according to market sources.

The Markit CDX North American Investment Grade series 23 index eased 2 bps to a spread of 65 bps.

New issues from Penske and Oklahoma Gas & Electric priced late afternoon and were not seen in aftermarket trading, according to market sources.

American Honda Finance’s new fixed-rate notes traded wrapped around issuance as the session closed, a trader said.

AT&T Inc.’s 3.9% notes due 2024 tightened 3 bps over the session, according to a market source.

Verizon Communications Inc.’s 3.5% notes due 2024 eased 3 bps, a source said.

In other trading, JPMorgan Chase & Co.’s 3.625% senior notes due 2024 were flat on the day, a market source said.

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