EverBank prices; H.J. Heinz improves in secondary; AT&T, Verizon firm; General Motors active

By Cristal Cody

Tupelo, Miss., June 26 – The primary market saw one deal during Friday’s session from EverBank Financial Corp.

The company priced $175 million of 5.75% 10-year subordinated notes at par.

Investment-grade corporate issuers brought about $20 billion of issuance over the week, about $5 billion less than initially forecasted.

With the short holiday week coming up, only about $10 billion to $15 billion of high-grade corporate issuance is expected in the week ahead.

In the secondary market, H.J. Heinz Co.’s senior notes (Baa3/BBB-/) priced earlier in the week have been “doing pretty good,” a source said.

In other trading, AT&T Inc.’s 3.4% notes due 2025 improved about 1 basis point.

Verizon Communications Inc.’s 3.5% notes due 2024 tightened 3 bps in trading.

General Motors Co.’s bonds (Ba1/BBB-/BBB-) have traded heavily over the past week.

The Markit CDX North American Investment Grade series 23 index closed modestly weaker to unchanged at a spread of 67 bps.

EverBank prices $175 million

EverBank Financial sold $175 million of 5.75% subordinated notes due July 2, 2025 at par on Friday, according to the company and an FWP filing with the Securities and Exchange Commission.

BofA Merrill Lynch, J.P. Morgan Securities LLC and UBS Securities LLC were the bookrunners.

The company intends to use the proceeds for general corporate purposes, which may include advances to subsidiaries to finance activities.

Jacksonville, Fla.-based EverBank Financial, through its wholly owned subsidiary EverBank, provides financial products and services.

H.J. Heinz firms

The 3.95% notes due 2025 that H.J. Heinz priced earlier in the week improved 2 bps to 153 bps offered in the secondary market, a trader said.

The company sold $2 billion of the notes (Baa3/BBB-/) on Tuesday at a spread of Treasuries plus 155 bps.

The company’s 5.2% long bonds due 2045 tightened to 192 bps offered over the afternoon.

H.J. Heinz sold $2 billion of the bonds at 200 bps over Treasuries in the Tuesday sale.

The food processing company is based in Pittsburgh.

AT&T modestly better

AT&T’s 3.4% notes due 2025 firmed about 1 bp to 166 bps bid, according to a market source.

The company sold $5 billion of the notes (/BBB+/A-) on April 23 at a spread of Treasuries plus 150 bps.

The telecommunications company is based in Dallas.

Verizon firms

Verizon’s 3.5% notes due 2024 firmed 3 bps to 145 bps bid on Friday, a market source said.

The company sold $2.5 billion of the notes (Baa1/BBB+/A-) on Oct. 22, 2014 at Treasuries plus 135 bps.

The telecommunications company is based in New York City.

General Motors mixed

General Motors’ 4% notes due 2025 were seen 6 bps weaker at 160 bps offered in the secondary market in early trading on Friday, a source said.

The company sold $500 million of the notes at Treasuries plus 175 bps on Nov. 4, 2014.

General Motors’ 5.2% bonds due 2045 firmed 4 bps to 214 bps offered, the market source said.

The company priced $1.2 billion of the bonds in the Nov. 4 sale at Treasuries plus 220 bps.

The automaker is based in Detroit.

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