Bank of America prices $1 billion; thin volume forecast; Occidental firms; Southwest eases

By Cristal Cody

Eureka Springs, Ark., Nov. 4 – Bank of America Corp. tapped the high-grade primary market on Friday as the lone corporate issuer while trading desks reported preparing for expected volatility on Election Day.

Bank of America sold $1 billion of four-year green bonds.

Little deal action is expected in the week ahead, which includes the U.S. presidential election, a financial industry conference and a federal holiday on Nov. 11.

About $5 billion to $10 billion of volume is expected on average, a source said.

New investment-grade bonds priced over the week headed out on Friday mixed in the secondary market.

Occidental Petroleum Corp.’s $1.5 billion of senior notes (A3/A/A) priced in two tranches on Wednesday traded about 3 basis points better.

Southwest Airlines Co.’s $300 million offering of 3% notes due 2026 traded about 1 bp softer than issuance on Friday.

Procter & Gamble Co.’s $1.75 billion of notes (Aa3/AA-/) sold in two parts at the start of the week headed out about 1 bp tighter.

The Markit CDX North American Investment Grade index eased less than 1 bp to close at a spread of 81 bps.

Bank of America sells notes

Bank of America priced $1 billion of 2.151% four-year senior medium-term notes (Baa1/BBB+/A) at par to yield a spread of 120 bps plus Treasuries on Friday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The series L notes are due Nov. 9, 2020.

BofA Merrill Lynch was the bookrunner.

Proceeds will be used to fund renewable energy projects.

The financial services company is based in Charlotte, N.C.

Occidental Petroleum firms

Occidental Petroleum’s 3% notes due 2027 traded on Friday at 122 bps bid, 120 bps offered, a market source said.

The company priced $750 million of the notes on Wednesday at a spread of 125 bps over Treasuries.

Occidental Petroleum’s $750 million tranche of 4.1% notes due 2047, priced on Wednesday at a spread of 155 bps plus Treasuries, firmed to 152 bps bid, 150 bps offered.

The oil and gas, chemical and midstream company is based in Los Angeles.

Southwest Airlines eases

Southwest Airlines’ 3% notes due 2026 traded softer at 128 bps bid, 126 bps offered on Friday, according to a market source.

The airline priced $300 million of the 10-year notes (Baa1/BBB/BBB+) on Tuesday at a spread of 127 bps plus Treasuries.

Dallas-based Southwest Airlines is a passenger airline company.

Procter & Gamble improves

Procter & Gamble’s 1.7% notes due 2021 were quoted in the secondary market on Friday at 42 bps bid, 40 bps offered, a source said.

The company sold $875 million of the five-year notes on Monday at a spread of 43 bps plus Treasuries.

Procter & Gamble’s 2.45% notes due 2026 firmed to 62 bps bid, 60 bps offered.

The 10-year notes priced on Monday in an $875 million tranche at a spread of 63 bps over Treasuries.

The consumer products company is based in Cincinnati.

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