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.

AT&T mixed

In secondary trading, AT&T’s 2.45% notes due 2020 were unchanged at 104 bps bid, a market source said.

The company sold $3 billion of the notes on April 23 at Treasuries plus 110 bps.

AT&T’s 3.4% notes due 2025 eased 2 bps to 152 bps bid in trading.

The company sold $5 billion of the notes in the April sale at a spread of Treasuries plus 150 bps.

The telecommunications company is based in Dallas.

Oracle eases

Oracle’s 2.95% notes due 2025 eased 3 bps to 102 bps bid on Thursday, a source said.

Oracle sold $2.5 billion of the notes on April 28 at Treasuries plus 100 bps.

The company’s 4.125% bonds due 2045 widened to 145 bps bid from 136 bps in trading.

Oracle sold $2 billion of the bonds at 145 bps over Treasuries in the April deal.

The computer software and technology company is based in Redwood City, Calif.

Apple soft

Apple’s 3.2% notes due 2025 widened 6 bps to 101 bps bid in the secondary market, a source said.

The company sold $2 billion of the 10-year notes on May 6 at Treasuries plus 100 bps.

Apple’s 4.375% notes due 2045 eased 2 bps to 137 bps bid in trading.

The company sold $2 billion of the bonds on May 6 at Treasuries plus 140 bps,

The computer and mobile communications device company is based in Cupertino, Calif.

Bank/brokerage CDSs mostly lower

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

Bank of America Corp.’s CDS costs were 1 bp lower at 64 bps bid, 68 bps offered. Citigroup Inc.’s CDS costs were down 1 bp to 74 bps bid, 77 bps offered. JPMorgan Chase’s CDS costs declined 1 bp to 62 bps bid, 66 bps offered. Wells Fargo & Co.’s CDS costs were flat at 43 bps bid, 47 bps offered.

Merrill Lynch’s CDS costs were 1 bp lower at 67 bps bid, 71 bps offered. Morgan Stanley’s CDS costs were down 3 bps to 76 bps bid, 78 bps offered. Goldman Sachs Group, Inc.’s CDS costs were 1 bp lower at 84 bps bid, 88 bps offered.

Stephanie N. Rotondo contributed to this review.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.