Wells Fargo, Imperial Tobacco price; AT&T weaker; Verizon firms; CVS long bonds tight

By Aleesia Forni and Cristal Cody

Virginia Beach, July 15 – Wells Fargo & Co. and Imperial Tobacco Group plc priced large deals amid volatile market conditions on Wednesday.

Wells Fargo sold three tranches of holding company notes in senior and subordinated tranches during the session.

Imperial Tobacco offered a four-part new issue to help finance its planned acquisition of cigarette brands from Reynolds American Inc. and Lorillard Inc.

A source noted that demand for the offering was solid, and the deal nabbed an order book that was more than two times oversubscribed.

The day’s activity pushes the week’s total supply to $42.9 billion, already blowing away sources’ expectations of around $25 billion of issuance.

Bonds in the telecommunications sector were mixed over the day.

AT&T Inc.’s 3.4% notes due 2025 widened 7 basis points in secondary trading.

Verizon Communications Inc.’s 3.5% notes due 2024 traded 2 bps better during the session.

Time Warner Inc.’s bonds (Baa2/BBB) were unchanged to 1 bp softer.

Earlier in the day, Charter Communications Inc.’s senior secured notes (Ba1/BBB-) were about 1 bp to 3 bps weaker.

Also in early trading, CVS Health Corp.’s $15 billion six-part offering of senior notes (Baa1/BBB+) brought on Monday traded mostly better.

The Markit CDX North American Investment Grade series 23 index was unchanged to modestly softer at a spread of 67 bps on Wednesday.

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