Public Service Enterprise, Principal Financial price; AT&T, Time Warner flat; Danone eases

By Cristal Cody

Eureka Springs, Ark., Nov. 3 – High-grade primary action is beginning to slow ahead of the U.S. presidential election with about $1.35 billion of corporate bond trading volume seen on Thursday.

Public Service Enterprise Group Inc. priced a $700 million two-part offering of senior notes.

Principal Financial Group, Inc. sold $650 million of senior notes in two tranches.

Investment-grade bonds were mostly unchanged in the secondary market over the session.

Bonds from AT&T Inc. and Time Warner Inc. were flat on the day. The companies’ bonds remain wider from mid-October levels before AT&T announced an $85.4 billion cash and stock offer to buy Time Warner.

Danone SA’s 2.947% notes due 2026 that priced in the previous week were quoted about 2 basis points weaker earlier in the day.

The Markit CDX North American Investment Grade index closed on Thursday unchanged at a spread of 80 bps.

In its deal, Public Service Enterprise Group sold $700 million of senior notes (Baa2/BBB) in two tranches on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company placed $400 million of 1.6% three-year notes at 99.883 to yield 1.64%, or 68 bps over Treasuries.

The $300 million tranche of 2% five-year notes priced at 99.81 to yield 2.04%, or Treasuries plus 78 bps.

The three- and five-year notes priced on the tight side of talk.

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