JPMorgan sells $1.75 billion; heavy supply forecast; GATX mixed; AT&T, Time Warner firm

By Cristal Cody

Tupelo, Miss., Nov. 3 – JPMorgan Chase & Co. came to the primary market on Friday and sold $1.75 billion of senior fixed-to-floating rate notes.

Deal action is expected to be heavy in the two weeks ahead of the Thanksgiving Day holiday, and market sources forecast about $30 billion of supply in the upcoming week.

In the secondary market, JPMorgan’s new notes traded late afternoon wrapped around issuance.

GATX Corp.’s notes (Baa2/BBB) that priced on Tuesday and Thursday were mixed in secondary trading.

In other trading, AT&T Inc.’s bonds (Baa1/BBB+/A-) tightened about 1 bp to 3 bps on Friday.

The company’s $85.4 billion cash and stock acquisition of Time Warner Inc. (Baa2/BBB/BBB+) is expected to close before the end of the year.

Time Warner’s 2.95% notes due July 15, 2026 firmed 3 bps.

The Markit CDX North American Investment Grade 29 index ended mostly flat at a spread of 53 bps.

JPMorgan sells fixed/floaters

JPMorgan Chase priced $1.75 billion of senior fixed-to-floating rate notes due Jan. 15, 2048 (A3/A-/A+) at a spread of Treasuries plus 115 bps on Friday, according to a market source.

The notes convert to a floating rate of Libor plus 138 bps after the initial fixed-rate period.

The issue tightened from initial price talk in the Treasuries plus 120 bps area.

J.P. Morgan Securities LLC was the bookrunner.

The notes were quoted in aftermarket trading at 115 bps bid.

The New York-based financial services firm plans to use the proceeds for general corporate purposes.

GATX mixed

The $200 million of senior floating-rate notes due Nov. 5, 2021 that GATX priced on Thursday at par to yield Libor plus 72 bps traded on Friday at Libor plus 75 bps bid, 72 bps offered, a market source said.

The company’s 3.5% senior notes due March 15, 2028 firmed to 117 bps bid, 115 bps offered in secondary trading.

GATX sold $300 million of the fixed-rate notes on Tuesday at a spread of 118 bps over Treasuries.

The transportation leasing company is based in Chicago.

AT&T firms

AT&T’s 3.9% notes due Aug. 14, 2027 tightened about 3 bps in the secondary market to 158 bps bid, a source said.

The company sold $5 billion of the notes on July 27 at a spread of 160 bps over Treasuries.

AT&T is a Dallas-based telecommunications company.

Time Warner better

Time Warner’s 2.95% notes due July 15, 2026 firmed 3 bps during the session to 133 bps bid, according to a market source.

Time Warner sold $800 million of the notes on May 5, 2016 at a spread of Treasuries plus 135 bps.

The media and entertainment company is based in New York.

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