Sweden, F.N.B. price notes during quiet session; Glencore, Alcoa down; bank paper softens

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 29 – Sweden and F.N.B Corp. priced the high-grade session’s only reported new issues on Tuesday as softer market conditions again kept the majority of potential issuers on the sidelines.

The sovereign sold a $1 billion issue of three-year notes in line with price talk at mid-swaps plus 4 basis points.

Meanwhile, F.N.B. came to market with a $100 million offering of 10-year subordinated notes.

In other primary happenings, International Bank for Reconstruction and Development (World Bank) announced plans to offer a benchmark issue of notes in three- and seven-year tranches.

Roughly $3.3 billion of new investment-grade issuance has priced amid the sour tone the market has seen so far this week.

Sources expect primary activity to resume on Wednesday, though the week’s supply is unlikely to reach earlier predictions of around $30 billion.

In the secondary market, Glencore Funding LLC’s bonds (Baa2/BBB/) remained down after parent company Glencore plc’s stock hit a new low on Monday on commodity market concerns. Glencore’s stock gained on Tuesday and was up 16.95%.

Alcoa Inc.’s split-rated bonds (Ba1/BBB-/BB+) were off following the company’s announcement on Monday that it will form into two independent publicly traded companies.

In other secondary trading, bank paper was seen about “3-4 [bps] wider” on Tuesday, a source said.

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