Morning Commentary: High-grade primary action quiet; Pacific Gas on deck with floaters

By Devika Patel

Knoxville, Tenn., Nov. 12 – The high-grade bond market stayed quiet over the morning on Thursday with only one new deal announced after the Veterans Day holiday on Wednesday.

San Francisco-based Pacific Gas & Electric Co., an electric and natural gas utility, reported that it intends to sell floating-rate first mortgage bonds due 2021.

Interest will be based on Libor.

The bonds are non-callable.

BofA Securities Inc., Mizuho Securities USA Inc., MUFG and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used for general corporate purposes, including repaying debt under the company's accounts receivable facility and its revolving credit facility.

Also, New York’s Verizon Communications Inc., a telecommunications company, priced $12 billion of fixed-rate notes (BBB+/A-) in five parts late Tuesday evening.

The company issued $2 billion of 0.85% five-year notes priced at 99.99.

There was $2.25 billion of 1.75% notes due Jan. 20, 2031 priced at 99.545.

The company priced $3 billion of 2.65% 20-year notes at 99.907.

Verizon sold $2.75 billion of 2.875% 30-year notes at 99.74.

There were $2 billion of 3% 40-year notes priced at 99.124.

BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo are the joint bookrunners.

Proceeds will be used for general corporate purposes, which may include acquisitions, and, depending on market conditions, the repayment of outstanding debt.

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