Capital One prices $2 billion; JPMorgan details $2.75 billion deal; AT&T, Time Warner firm

By Cristal Cody

Eureka Springs, Ark., Jan. 26 – Capital One, NA priced a $2 billion two-tranche offering of senior bank notes on Thursday as the sole reported issuer in the U.S. high-grade primary market.

The Canadian high-grade primary market saw two deals price during the session.

Ontario priced an C$800 million add-on to its 1.95% green bonds due Jan. 27, 2023 at 99.412 to yield 2.055%.

Power Corp. of Canada sold C$250 million of new 4.81% 30-year debentures at par.

In other activity, JPMorgan Chase & Co. detailed its $2.75 billion offering of 11-year senior fixed- to floating-rate notes.

In the secondary market, AT&T Inc.’s 4.125% notes due 2026 and Time Warner Inc.’s 2.95% notes due 2026 both traded about 1 basis point better on the day.

AT&T announced plans in October to acquire Time Warner in an $85.4 billion cash and stock deal expected to close before the end of 2017.

The Markit CDX North American Investment Grade index ended mostly unchanged at a spread of 64 bps.

Capital One sells notes

Capital One priced $2 billion of senior bank notes (Baa1/BBB+/A-) in two parts on Thursday, according to a market source.

The company sold $1.5 billion of 2.35% three-year notes at 99.94 to yield 2.371% and a spread of Treasuries plus 88 bps.

The $500 million tranche of floating-rate notes due Jan. 30, 2023 priced at par to yield Libor plus 115 bps.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the lead managers.

Proceeds will be used for general corporate purposes.

Capital One is a subsidiary of McLean, Va.-based Capital One Financial Corp.

JPMorgan prices $2.75 billion

JPMorgan Chase priced $2.75 billion of 3.782% senior fixed- to floating-rate notes due Feb. 1, 2028 at par with a spread of 127 bps over Treasuries on Wednesday, according to a market source and an FWP filing with the SEC.

The notes (A3/A-/A+) priced on the tight side of guidance.

The notes will convert to a floating rate Feb. 1, 2027 to but excluding the maturity at a rate equal to Libor plus 133.7 bps.

J.P. Morgan Securities was the bookrunner.

The financial services company is based in New York City.

AT&T improves

AT&T’s 4.125% notes due 2026 traded about 1 bp tighter on Thursday at 156 bps bid, according to a market source.

AT&T (Baa1/BBB+/A-) priced a $900 million add-on to the bonds on May 3 at Treasuries plus 150 bps. The notes originally were sold on Jan. 29, 2016 in a $1.5 billion offering at 195 bps over Treasuries.

The telecommunications company is based in Dallas.

Time Warner firms

Time Warner’s 2.95% notes due 2026 firmed about 1 bp in secondary trading to 142 bps bid, a market source said on Thursday.

Time Warner (Baa2/BBB/BBB+) sold $800 million of the notes on May 5, 2016 at a spread of 135 bps over Treasuries.

The media and entertainment company is based in New York.

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