Honeywell, Wells Fargo, Bank of New York Mellon price issues; AT&T, Time Warner bonds widen

By Cristal Cody

Eureka Springs, Ark., Oct. 24 – Investment-grade primary action held strong over Monday’s session with new deals from Honeywell International Inc., Bank of New York Mellon Corp. and Wells Fargo & Co.

Honeywell International sold $4.5 billion of senior notes in four tranches, dropping a planned five-year floating-rate tranche.

Wells Fargo sold $2 billion of seven-year floating-rate senior notes.

Bank of New York Mellon raised $1.25 billion in a two-part notes sale.

About $20 billion to $25 billion of supply is forecast for the week, according to market sources.

Meanwhile, AT&T Inc.’s bonds widened about 10 basis points to 20 bps over the company’s weekend announcement that it will acquire Time Warner Inc. in an $85.4 billion cash-and-stock deal.

Time Warner’s bonds traded about 20 bps weaker.

The Markit CDX North American Investment Grade index ended mostly unchanged at a spread of 74 bps.

Honeywell prices $4.5 billion

Honeywell International sold $4.5 billion of senior notes in four tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.

The company priced $250 million of three-year floating-rate notes at par to yield Libor plus 28 bps.

Honeywell sold $1.25 billion of 1.4% notes due Oct. 30, 2019 at 99.921 to yield 1.427% and a spread of 43 bps plus Treasuries.

The $1.5 billion tranche of 1.85% five-year notes priced at 99.995 to yield 1.851%, or Treasuries plus 58 bps.

A planned offering of five-year floating-rate notes was dropped from the final sale.

Honeywell also sold $1.5 billion of 2.5% 10-year notes at 99.64 to yield 2.541%. The notes priced with a spread of Treasuries plus 78 bps.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to repay commercial paper; to purchase the company’s 5.3% notes due 2017, 5.3% notes due 2018 and 5% notes due 2019 under a tender offer; to redeem any of the 5.3% notes due 2017, 5.3% notes due 2018 and 5% notes due 2019 that remain outstanding following the tender offer and for general corporate purposes.

Honeywell is a technology and manufacturing company based in Morristown, N.J.

Wells Fargo sells $2 billion

Wells Fargo (A2/A/AA-) sold $2 billion of seven-year floating-rate senior notes at par to yield Libor plus 123 bps on Monday, according to an FWP filing with the SEC.

Wells Fargo Securities was the bookrunner.

Proceeds will be used for general corporate purposes.

The financial services company is based in San Francisco.

Bank of New York Mellon sells

Bank of New York Mellon priced $1.25 billion of floating-rate senior medium-term notes, series I, and fixed-rate senior subordinated medium-term notes, series J, on Monday, according to a market source and a 424B5 filing with the SEC.

The bank sold $750 million of floating-rate notes due Oct. 30, 2023 at Libor plus 105 bps.

Bank of New York Mellon priced $500 million of 3% notes due Oct. 30, 2028 at a spread of Treasuries plus 125 bps.

Both series of notes will have par calls.

Barclays, BNY Mellon Capital Markets LLC, Deutsche Bank, Morgan Stanley and UBS Securities LLC were the bookrunners.

Bank of New York Mellon is a financial products and services company based in New York.

AT&T moves out

AT&T’s 4.125% notes due 2026 headed out on Monday at 161 bps bid, according to a market source.

The notes traded on Friday at 146 bps bid.

The company priced a $900 million reopening of the bonds on May 3 at Treasuries plus 150 bps.

The notes originally were sold on Jan. 29 in a $1.5 billion offering at 195 bps over Treasuries.

AT&T is a Dallas-based telecommunications company.

Time Warner weakens

Time Warner’s 2.95% notes due 2026 widened to 138 bps bid on Monday from 112 bps bid on Friday, a market source said.

The company sold $800 million of the notes on May 5 at a spread of 135 bps over Treasuries.

Time Warner is a New York-based media and entertainment company.

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