BofA shelves planned bond offer; McDonald’s sees demand; Hewlett Packard, Charter tighten

By Aleesia Forni

New York, Dec. 2 – Bank of America did not launch its previously announced benchmark offering of senior bank notes on Wednesday, while McDonald’s Corp. saw blowout demand for its new bond offering.

Bank of America’s two-part three-year deal (A1/A/A+) was slated for Wednesday pricing following its announcement early during the trading day, according to informed sources, though the deal did not launch as planned during the session.

One market source said the bank will revisit the issue on Thursday, though other details were unavailable at press time.

The Charlotte, N.C.-based financial services company talked the fixed-rate tranche in the 85 basis points area over Treasuries, while the floaters were talked at the Libor equivalent.

BofA Merrill Lynch is the bookrunner.

Meantime, McDonald’s Corp. attracted an order book that was more than six times oversubscribed for its new $6 billion offering.

Tranches of the offering sold between 25 bps and 35 bps inside of initial price thoughts.

Elsewhere on Wednesday, Commonwealth Bank of Australia priced $1.25 billion of subordinated notes, while Jackson National Life Global Funding and Principal Life Global Funding II were each in the market with upsized funding agreement-back deals.

Investment-grade bonds were mixed over the session.

McDonald’s existing senior notes (A3/BBB+/BBB+) traded flat to softer over the day.

Hewlett Packard Enterprise Co.’s bonds (Baa2/BBB/A-) firmed 3 bps in secondary trading.

Charter Communications Inc.’s 4.908% notes due 2025 tightened 5 bps.

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