Bank of America, Nike, Jackson price; Wells Fargo delays deal; bank, financial paper mixed

By Cristal Cody

Eureka Springs, Ark., Oct. 18 – Pricing action remained strong over Tuesday’s session in the investment-grade market.

Bank of America Corp. priced $5 billion of senior notes in three tranches.

Nike, Inc. sold $1.5 billion of fixed-rate notes in two tranches during the session.

Jackson National Life Insurance Co. priced $350 million of five-year notes.

In addition, Freddie Mac auctioned a $750 million add-on to its 0.875% Reference Notes due Oct. 12, 2018.

Wells Fargo & Co. postponed a planned offering of 10-year senior notes (A2/A/AA-) until Wednesday’s session following S&P’s outlook change on the company, according to a market source.

S&P announced on Tuesday that it revised its outlook on Wells Fargo to negative from stable based on increased business risks, including reputational issues from the Sept. 8 news accounts of the company’s retail accounts sales misconduct.

Wells Fargo’s existing paper was mostly unchanged on the day in the secondary market, a source said.

Bank of America’s existing notes were flat to tighter on average in secondary trading. The bank’s 4.45% subordinated notes due March 3, 2026 firmed about 3 basis points.

Kroger Co.’s new 3.875% senior notes due 2046 traded flat to 1 bp tighter.

The Markit CDX North American Investment Grade index closed about 1 bp tighter at a spread of 75 bps on Tuesday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.