American Honda Finance, Commonwealth Edison price; KfW, NWB offer notes; AT&T improves

By Cristal Cody

Tupelo, Miss., Feb. 12 – Deal action stayed light on Monday with two reported issuers in the high-grade primary market.

American Honda Finance Corp. sold $1.6 billion of medium-term notes in three tranches.

Commonwealth Edison Co. priced $800 million of 30-year first mortgage bonds.

Supply was expected to be light over the session as investors gauge market stability following last week’s stock correction, a source said. Stocks remained modestly better over the day.

About $15 billion to $20 billion of bond supply is expected for the week, according to market sources.

Coming up on Tuesday, KfW is offering $1 billion of notes due Nov. 5, 2019.

Also, Nederlandse Waterschapsbank NV (Aaa/AAA/) plans to price $500 million of senior floating-rate notes due Feb. 24, 2020 on Tuesday, a source said. The notes were initially talked to price in the Libor plus 4 basis points area.

In addition, the Bank of New Zealand (A1/AA-/AA-) plans to hold a week-long deal roadshow that started on Monday, according to a market source.

Investment-grade credit spreads and bonds were mostly improved on Monday, according to market sources.

The Markit CDX North American Investment Grade 29 index tightened about 3 bps to a spread of 57 bps.

AT&T Inc.’s 3.9% notes due Aug. 14, 2027 (Baa1/BBB+/A-) tightened 5 bps to 112 bps bid during the session, a source said.

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