Deal action up; BB&T, Procter & Gamble, Honeywell among issuers; credit spreads mostly flat

By Cristal Cody

Tupelo, Miss., Oct. 23 – Deal volume was strong over Monday’s session with several investment-grade issuers in the primary market.

BB&T Corp. priced $2.3 billion of dollar-denominated notes in three tranches.

Procter & Gamble Co. sold $1.8 billion of notes in three parts.

Honeywell International Inc. priced $1.2 billion of senior notes in two tranches.

American Express Co. and United Airlines Inc. also planned to tap the primary market on Monday.

About $20 billion of high-grade bond deal volume is expected over the week, according to a market source.

The Markit CDX North American Investment Grade 29 index closed modestly tighter at a spread of 53 basis points.

BB&T brings $2.3 billion

BB&T priced a $2.3 billion three-part dollar-denominated offering of series G senior medium-term notes (A2/A-/A+) on Monday, according to FWP filings with the Securities and Exchange Commission.

BB&T sold $300 million of floating-rate notes due Feb. 1, 2021 at par to yield Libor plus 22 bps.

The company priced $1 billion of 2.15% fixed-rate notes due Feb. 1, 2021 at 99.954 and a spread of Treasuries plus 47 bps.

In the final tranche, BB&T sold $1 billion of 2.85% notes due Oct. 26, 2024 at 99.918 and a spread of 65 bps over Treasuries.

BB&T Capital Markets, Goldman Sachs & Co., Morgan Stanley & Co. LLC and UBS Securities LLC were the bookrunners.

The bank and financial services company is based in Winston-Salem, N.C.

Procter & Gamble prices

Procter & Gamble sold $1.8 billion of fixed-rate notes (Aa3/AA-/) in three parts on Monday, according to an FWP filing with the SEC.

The company priced $600 million of 1.75% notes due Oct. 15, 2019 at 99.965 to yield 1.768%, or a spread of Treasuries plus 20 bps.

Procter & Gamble sold $600 million of 1.9% notes due Oct. 23, 2020 at 99.847 to yield 1.953% and a Treasuries plus 25 bps spread.

The $600 million tranche of 3.5% notes due Oct. 25, 2047 priced at 98.699 to yield 3.571%. The bonds priced at a spread of 68 bps over Treasuries.

Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Morgan Stanley were the bookrunners.

Procter & Gamble also priced a concurrent euro-denominated offering that included €500 million of 0.5% notes due 2024 and €500 million of 1.25% notes due 2029.

The consumer products company is based in Cincinnati.

Honeywell sells $1.2 billion

Honeywell International priced $1.2 billion of senior notes (A2/A/A) in two tranches on Monday, according to an FWP filing with the SEC.

The company priced $450 million of floating-rate notes due Oct. 30, 2019 at par to yield Libor plus 40 bps.

Honeywell sold $750 million of 1.8% notes due Oct. 30, 2019 at 99.922 to yield 1.84%, or a spread of Treasuries plus 28 bps.

Barclays, Citigroup Global Markets Inc., Goldman Sachs and BofA Merrill Lynch were the bookrunners.

Honeywell is a technology and manufacturing company based in Morristown, N.J.

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