AT&T, Protective Life, Con Ed, Alabama Power price bonds; Walmart mixed; Bayer softens

By Cristal Cody

Tupelo, Miss., June 21 – A few high-grade issuers priced bonds on Thursday, while little market activity is expected on Friday following the strong deal week, sources said.

AT&T Inc. priced $1.5 billion of three-year floating-rate notes at par to yield Libor plus 75 basis points.

Protective Life Global Funding sold $700 million of senior secured notes in two parts.

Consolidated Edison Co. of New York, Inc. sold $640 million of three-year floating-rate debentures.

Alabama Power Co. placed $500 million of 30-year senior notes.

Also, DNB Bank ASA subsidiary DNB Boligkreditt AS sold $1 billion of five-year covered bonds.

The Markit CDX North American Investment Grade 30 index eased about 2 bps to close at a spread of 65 bps.

More than $43 billion of bonds have priced week to date, with $31 billion of volume just from Walmart Inc.’s $16 billion transaction on Wednesday and Bayer AG’s $15 billion deal on Monday.

Walmart’s new senior notes (Aa2/AA/AA) were mixed on Thursday in the secondary market.

The notes that Bayer affiliate Bayer US Finance II LLC (Baa1/BBB/A-) priced on Monday were quoted wider in secondary trading.

New issue supply is expected to subside for the rest of June due to the upcoming Independence Day holiday and earnings blackout periods, Hans Mikkelsen, an analyst with BofA Merrill Lynch, said in a note.

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