Bank of America prices $1 billion; thin volume forecast; Occidental firms; Southwest eases

By Cristal Cody

Eureka Springs, Ark., Nov. 4 – Bank of America Corp. tapped the high-grade primary market on Friday as the lone corporate issuer while trading desks reported preparing for expected volatility on Election Day.

Bank of America sold $1 billion of 2.151% four-year senior medium-term notes (Baa1/BBB+/A) at par to yield a spread of 120 basis points plus Treasuries on Friday, according to a market source and an FWP filing with the Securities and Exchange Commission.

BofA Merrill Lynch was the bookrunner.

Proceeds will be used to fund renewable energy projects.

Little deal action is expected in the week ahead, which includes the U.S. presidential election, a financial industry conference and a federal holiday on Nov. 11.

About $5 billion to $10 billion of volume is expected on average, a source said.

New investment-grade bonds priced over the week headed out on Friday mixed in the secondary market.

Occidental Petroleum Corp.’s $1.5 billion of senior notes (A3/A/A) priced in two tranches on Wednesday traded about 3 basis points better.

Southwest Airlines Co.’s $300 million offering of 3% notes due 2026 traded about 1 bp softer than issuance on Friday.

Procter & Gamble Co.’s $1.75 billion of notes (Aa3/AA-/) sold in two parts at the start of the week headed out about 1 bp tighter.

The Markit CDX North American Investment Grade index eased less than 1 bp to close at a spread of 81 bps.

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