United Technologies prices subordinated notes wide of talk; Oracle, Amgen bonds widen

By Aleesia Forni

Virginia Beach, April 29 – The high-grade market was showing signs of weakness on Wednesday, as the Federal Reserve wrapped up its two-day policy meeting.

The day’s lone issuer, United Technologies Corp., was forced to price its new $1,099,000,000 three-year subordinated note wide of price talk.

The company also did not tighten price guidance compared to the initial talk levels for its new $850 million 30-year senior note offering.

Meanwhile, spreads in the secondary market were mostly weaker overall.

The Markit CDX North American Investment Grade series 23 index was 2 basis points wider at a spread of 62 bps.

Recent deals from Oracle Corp. and Amgen Inc., both of which priced during Tuesday’s session, weakened on the day in the secondary.

Tranches of Oracle’s $10 billion six-part offering eased 3 bps to 12 bps, while Amgen’s $3.5 billion issue was 2 bps to 5 bps weaker.

Bank and financial paper was mixed on the day, with bonds from Bank of America Corp. and Morgan Stanley trading wider, while JPMorgan Chase & Co.’s 10-year bonds were 1 bp tighter.

In forward calendar news, Nederlandse Waterschapsbank NV announced plans to price a $500 million add-on to its existing 1.25% notes due Sept. 18, 2017, an informed source said.

Banks and brokers CDS costs were mostly higher on Wednesday, according to a market source.

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