Zimmer sells $7.35 billion; ING, FMS also price; Bank of America, JPMorgan weaker

By Aleesia Forni and Cristal Cody

Virginia Beach, March 10 – The onslaught of new issuance in the investment-grade primary market continued on Tuesday.

Even with a decidedly weaker tone to the market, the primary digested $16.6 billion of new issuance during the session, pushing the week’s total supply to more than $32 billion in just two trading days.

Zimmer Holdings Inc. entered the primary market with a $7.35 billion seven-part offering in order to refinance the bridge loan for its acquisition of Biomet, Inc.

The primary also saw ING Bank NV sell $2.35 billion of senior notes in three parts, while FMS Wertmanagement sold a $1.5 billion five-year issue of global notes.

Also on Tuesday, Valero Energy Corp. sold a $1.25 billion two-tranche offering of senior notes, and American Honda Finance Corp. priced $1.25 billion of notes in three- and five-year tranches.

Essex Portfolio, LP, Kommunalbanken AS and Boardwalk Pipelines LP each sold upsized offerings on Tuesday.

The session also saw TC PipeLines LP, Priceline Group Inc. and Sempra Energy price new issues.

Bank and financial paper softened along with high-grade credit spreads over the day, sources said.

Bank of America Corp.’s paper (Baa2/A-/A) traded 2 basis points to 8 bps wider in the secondary market.

JPMorgan Chase & Co.’s 3.125% notes due 2025 eased 2 bps.

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