Bank of America brings senior bank notes; Time Warner Cable bonds tighten; Citigroup firms

By Aleesia Forni and Cristal Cody

Virginia Beach, May 29 – Bank of America NA capped off the month of May by pricing a $2.75 billion two-part offering of senior bank notes on Friday.

The day’s lone deal pushed the week’s total supply to $20.85 billion.

The company sold $1 billion of floating-rate notes due 2017 at par to yield Libor plus 45 basis points and $1.75 billion of 1.75% notes due 2018 at 99.913 to yield 1.78%, or Treasuries plus 85 bps.

Both tranches sold at the tight end of price talk.

BofA Merrill Lynch is the bookrunner.

The Charlotte, N.C.-based financial services company plans to use proceeds for general corporate purposes.

Meantime, Lipper reported $127 million of outflows from corporate high-grade funds for the week ended May 27.

This follows last week’s $932 million of inflows and puts the year-to-date total at roughly $29 billion of inflows.

Investment-grade bonds traded mostly softer over the session on Friday, while Time Warner Cable Inc.’s bonds continued to tighten going out, according to market sources.

Time Warner Cable’s bonds (Baa2/BBB/BBB) have tightened more than 60 bps since Tuesday after Charter Communications, Inc. announced it will acquire the company for $78.7 billion in cash and stock.

Time Warner Cable’s 4.125% notes due 2021 traded nearly 20 bps better on Friday.

AT&T Inc.’s bonds (/BBB+/A-) were mostly weaker in the secondary market.

Bank and financial paper was mixed over the day.

Citigroup Inc.’s 3.3% senior notes due 2025 traded 6 bps better.

Bank of America’s existing 4% notes due 2025 were unchanged.

Goldman Sachs Group Inc.’s 3.5% notes due 2025 headed out 1 bp weaker.

JPMorgan Chase & Co.’s 3.125% notes due 2025 widened 6 bps.

The three-month Libor yield eased 1 bp to 29 bps on Friday.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 64 bps.

Time Warner Cable improves

Time Warner Cable’s 4.125% notes due 2021 traded 17 bps tighter at 195 bps bid late afternoon on Friday, according to a market source.

The bonds were quoted a week ago before the merger announcement at 280 bps bid.

Time Warner Cable sold $700 million of the notes in 2010 at 155 bps plus Treasuries.

The broadband communications company is based in New York City.

AT&T soft

AT&T’s 3.4% notes due 2025 headed out 6 bps weaker at 171 bps bid on Friday, a market source said.

The company sold $5 billion of the notes on April 23 at a spread of Treasuries plus 150 bps.

AT&T’s 4.75% bonds due 2046 eased 4 bps to 225 bps bid in secondary trading.

AT&T sold $3.5 billion of the bonds in the April 23 sale at Treasuries plus 215 bps.

The telecommunications company is based in Dallas.

Citigroup firms

Citigroup’s 3.3% senior notes due 2025 tightened 6 bps to 132 bps bid in the secondary market, according to a source.

Citigroup sold $1.5 billion of the notes (Baa2/A-/A) on April 22 at Treasuries plus 135 bps.

The investment bank is based in New York.

Bank of America stable

Bank of America’s 4% notes due 2025 traded flat on the day at 197 bps bid, according to a market source.

Bank of America sold $2.5 billion of the notes (Baa2/A-/A) on Jan. 16 at Treasuries plus 225 bps.

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

Goldman eases

Goldman Sachs’ 3.5% notes due 2025 eased 4 bps to 155 bps bid on Friday, a market source said.

Goldman brought an $800 million add-on to the notes (Baa1/A-/A) on March 25 at Treasuries plus 145 bps.

The issue originally priced on Jan. 20 in a $1.7 billion offering at Treasuries plus 170 bps.

The financial services company is based in New York City.

JPMorgan weaker

JPMorgan Chase’s 3.125% notes due 2025 traded 6 bps wider at 134 bps bid during the session, according to a market source.

JPMorgan sold $2.5 billion of the notes (A3/A/A+) on Jan. 16 at a spread of 145 bps plus Treasuries.

The financial services company is based in New York City.

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