Export Development Canada prices notes; JPMorgan sells floaters; AT&T, Time Warner mixed

By Cristal Cody

Tupelo, Miss., Nov. 21 – Export Development Canada tapped the U.S. primary market on Tuesday with a $1 billion dollar-denominated offering of three-year notes.

In corporate issuance, JPMorgan Chase & Co. was the lone reported high-grade issuer with a $500 million offering of long seven-year floating-rate notes.

Deal action is expected to be light over the remainder of the holiday week, according to market sources. The bond markets will close on Thursday and shut early on Friday for the Thanksgiving Day holiday.

About $5 billion to $10 billion of total bond issuance was expected by market sources for the week.

In the secondary market, AT&T Inc.’s bonds (Baa1/BBB+/A-) were mixed on Tuesday.

The Justice Department announced on Monday that it had filed a federal lawsuit to stop the company’s acquisition of Time Warner Inc.

The $85.4 billion cash and stock takeover was scheduled to close before the end of the year.

AT&T’s 3.9% notes due Aug. 14, 2027 firmed 3 basis points to 159 bps bid, a source said.

AT&T sold $5 billion of the notes on July 27 at a spread of 160 bps over Treasuries.

Time Warner’s notes (Baa2/BBB/BBB+) traded mostly flat to slightly weaker during the session, a source said.

Time Warner’s 2.95% notes due July 15, 2026 (Baa2/BBB/BBB+) headed out flat at 135 bps bid.

The New York-based media and entertainment company sold $800 million of the notes on May 5, 2016 at a spread of Treasuries plus 135 bps.

The Markit CDX North American Investment Grade 29 index tightened nearly 2 bps to close the day at a spread of 53 bps.

EDC sells notes

Export Development Canada (Aaa/AAA) priced $1 billion of 2% three-year U.S. dollar global notes in Tuesday’s offering at 99.878 to yield 2.042%, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced at mid-swaps plus 1 bp, or a spread of Treasuries plus 16.15 bps.

The issue was initially talked to price in the mid-swaps flat area.

Barclays, CIBC World Markets Corp., HSBC Bank plc and TD Securities (USA) LLC were the bookrunners.

Ottawa-based Export Development Canada is a Canadian government-owned export credit agency.

JPMorgan prices floaters

JPMorgan Chase priced $500 million of floating-rate notes due Jan. 10, 2025 (A3/A-/A+) at Libor plus 85 bps, according to a market source on Tuesday.

J.P. Morgan Securities LLC was the bookrunner.

The financial services firm is based in New York.

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