Synchrony sees demand; Fairfax, PSE&G do deals; Synchrony firms; Time Warner little changed

By Cristal Cody and Aleesia Forni

Virginia Beach, Aug. 6 – Synchrony Financial, Public Service Electric & Gas Co. and Fairfax (US) Inc. sold new deals on Wednesday during another solid session for high-grade bonds.

Synchrony’s new $3.6 billion four-part offering “saw huge demand,” a source said, garnering an orderbook that was nearly five times oversubscribed. The deal had been upsized from $3 billion.

The session also saw PSE&G bring a $500 million two-part offering and Fairfax sell $300 million of 10-year notes.

In other market action, Federal Home Loan Banks priced $3 billion of two-year global bonds at the tight end of price talk during the session.

Around $14 billion of new issuance has priced this week, closing in on what sources believed would be around a $15 billion week.

Investment-grade credit spreads stayed about a ˝ basis point weaker over the session, a market source said.

Synchrony Financial’s tranches tightened in aftermarket trading, while PSE&G’s bonds also were active, a trader said.

The new notes from Fairfax were not seen in late afternoon trading.

Elsewhere in the secondary market, Time Warner Inc.’s senior notes (Baa2/BBB/BBB+) brought in May traded flat in little reaction to the withdrawal of a takeover offer late on Tuesday from Rupert Murdoch’s 21st Century Fox Inc.

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