TIAA debut offering meets demand; P&G, PNC also price notes; Tri-State long bonds firm

By Aleesia Forni and Cristal Cody

Virginia Beach, Oct. 27 – The investment-grade bond market kicked off what is expected to be an active week with more than $6 billion of new issuance on Monday.

In its debut offering, TIAA Asset Management Finance Co. LLC priced $2 billion of notes in two parts on Monday, attracting a solid order book that was more than four times oversubscribed.

Also on Monday, both Procter & Gamble Co. and PNC Bank NA came to market with upsized issues during the session.

Procter & Gamble sold its new deal at the tight end of price talk, which firmed around 10 basis points compared to initial guidance.

PNC Bank’s two-part offering also priced around 10 bps tighter than original price thoughts.

In other primary happenings on Monday, Tri-State Generation & Transmission Association Inc. sold a $500 million new issue, while AT&T Inc. offered $1.3 billion of global notes.

Looking forward, another busy primary session is expected for Tuesday ahead of the two-day Federal Open Market Committee meeting mid-week.

Sources are calling for around $20 billion to $25 billion of new issuance for the last full week of October.

Investment-grade credit spreads were unchanged on Monday, and the Markit CDX North American Investment Grade series 23 index closed at a spread of 65 bps.

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