Verizon brings megadeal; Omnicom, Macquarie also price; Verizon paper mixed in aftermarket

By Aleesia Forni and Cristal Cody

Virginia Beach, Oct. 22 – The high-grade primary bond market saw a flurry of new deals on Wednesday.

Verizon Communications Inc., Macquarie Bank Ltd. and Omnicom Group Inc. were among the issuers bringing more than $10 billion of supply to market.

Verizon’s new $6.5 billion megadeal saw solid demand from investors, pricing around 10 basis points to 15 bps tighter compared to initial talk.

A source noted that the deal’s order book was more than three times oversubscribed.

Omnicom Group’s $750 million offering was also well received on Wednesday, with its new issue pricing 15 bps tighter compared to guidance.

In other primary happenings, Macquarie Bank priced $1.75 billion of notes due 2017 in fixed- and floating-rate tranches during the session.

The fixed-rate portion of the bank’s new deal sold at the tight end of price talk.

FMS Wertmanagement also hit the day’s primary market, pricing $1.5 billion of three-year notes.

In the secondary market, Verizon’s 3% notes due 2021 eased to 117 bps bid, 113 bps offered, a trader said.

The company’s 3.5% notes due 2024 firmed slightly to 134 bps bid, 129 bps offered.

The tranche of 4.4% notes due 2034 traded wrapped around issuance at 145 bps offered.

Verizon is a New York City-based telecommunications company.

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