JPMorgan prices subordinated notes; AT&T, Oracle, Apple widen

By Aleesia Forni and Cristal Cody

Virginia Beach, May 21 – JPMorgan Chase & Co. was the only issuer to brave a fatigued investment-grade market on Thursday.

The New York-based financial services company sold a $1.75 billion offering of 4.95% 30-year subordinated bonds in line with initial price thoughts.

J.P. Morgan & Co. LLC was the bookrunner.

The notes (Baa1/A-/A) sold at 99.288 to yield 4.996%, and proceeds will be used for general corporate purposes.

The single offering priced on Thursday brings the week’s total supply to $51.12 billion, more than double sources’ expectations of around $25 billion of new issuance.

Investment-grade bonds were mixed over the session with bonds quoted mostly unchanged to softer.

AT&T Inc.’s bonds (/BBB+/A-) traded flat to 2 basis points weaker in the secondary market.

Oracle Corp.’s senior notes (A1/AA-/A+) widened over the day.

Apple Inc.’s bonds (Aa1/AA+/) were quoted 2 bps to 6 bps wider.

The Markit CDX North American Investment Grade series 23 index firmed 1 bp to a spread of 63 bps.

Investment-grade bank and brokerage CDS prices were mostly lower on Thursday, according to a market source.

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