Honeywell, Wells Fargo, Bank of New York Mellon price new issues; AT&T, Time Warner widen

By Cristal Cody

Eureka Springs, Ark., Oct. 24 – Investment-grade primary action held strong over Monday’s session with new deals from Honeywell International Inc., Bank of New York Mellon Corp. and Wells Fargo & Co.

Honeywell sold $4.5 billion of senior notes in four tranches, dropping a planned five-year floating-rate tranche.

The company priced $250 million of three-year floating-rate notes at par to yield Libor plus 28 basis points; $1.25 billion of 1.4% notes due Oct. 30, 2019 at 99.921 to yield 1.427%, or Treasuries plus 43 bps; $1.5 billion of 1.85% five-year notes at 99.995 to yield 1.851%, or Treasuries plus 58 bps; and $1.5 billion of 2.5% 10-year notes at 99.64 to yield 2.541%, or Treasuries plus 78 bps.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.

Wells Fargo sold $2 billion of seven-year floating-rate senior notes.

Bank of New York Mellon raised $1.25 billion in a two-part notes sale.

About $20 billion to $25 billion of supply is forecast for the week, according to market sources.

Meanwhile, AT&T Inc.’s bonds widened about 10 bps to 20 bps over the company’s weekend announcement that it will acquire Time Warner Inc. in an $85.4 billion cash-and-stock deal.

Time Warner’s bonds traded about 20 bps weaker.

The Markit CDX North American Investment Grade index ended mostly unchanged at a spread of 74 bps.

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