Bank of New York Mellon prices; Bank of America, JPMorgan flat; Citigroup, Goldman soft

By Cristal Cody

Tupelo, Miss., May 22 – Bank of New York Mellon Corp. tapped the investment-grade bond market on Friday, while the short session otherwise was mostly quiet, sources said.

The bond markets closed at 2 p.m. ET on Friday and will be closed on Monday for the Memorial Day holiday.

Bank of New York Mellon brought an $800 million two-part offering of three-year senior medium-term notes in fixed- and floating-rate tranches.

The deal brings the week’s high-grade corporate bond issuance to nearly $52 billion.

Bond issuance is forecast to drop to about $25 billion in the upcoming short market week.

In the secondary market on Friday, bank and financial paper was flat to modestly weaker.

Bank of America Corp.’s 4% notes due 2025 traded unchanged.

Citigroup Inc.’s 3.3% senior notes due 2025 eased 2 basis points.

Goldman Sachs Group Inc.’s 3.5% notes due 2025 headed out 1 bp weaker.

JPMorgan Chase & Co.’s 3.125% notes due 2025 were flat.

The Markit CDX North American Investment Grade series 23 index eased 1 bp to a spread of 64 bps.

BNY Mellon prices

Bank of New York Mellon sold $800 million of series G senior medium-term notes (A1/A+/AA-) in two tranches on Friday, according to FWP filings with the Securities and Exchange Commission.

In the first tranche, $300 million of three-year floating-rate senior notes priced at Libor plus 38 bps.

Bank of New York Mellon sold $500 million of 1.6% three-year fixed-rate senior notes 99.991 to yield 1.603%. The notes priced at a spread of 60 bps over Treasuries.

Goldman Sachs & Co. was the bookrunner.

Bank of New York Mellon is a financial products and services company based in New York.

Bank of America unchanged

In secondary trading on Friday, Bank of America’s 4% notes due 2025 were unchanged at 193 bps bid, according to a market source.

Bank of America sold $2.5 billion of the notes (Baa2/A-/A) on Jan. 16 at a spread of Treasuries plus 225 bps.

The financial services company is based in Charlotte, N.C.

Citigroup eases

Citigroup’s 3.3% senior notes due 2025 traded 2 bps softer at 141 bps bid, according to a market source.

Citigroup sold $1.5 billion of the notes (Baa2/A-/A) on April 22 at Treasuries plus 135 bps.

The investment bank is based in New York.

Goldman Sachs softens

Goldman Sachs’ 3.5% notes due 2025 eased 1 bp to 151 bps bid during the session, a market source said.

Goldman priced an $800 million add-on to the issue (Baa1/A-/A) on March 25 at Treasuries plus 145 bps.

The notes originally priced in a $1.7 billion offering on Jan. 20 at Treasuries plus 170 bps.

The financial services company is based in New York City.

JPMorgan unchanged

JPMorgan Chase’s 3.125% notes due 2025 traded flat on Friday at 126 bps bid, according to a market source.

JPMorgan sold $2.5 billion of the notes (A3/A/A+) on Jan. 16 at 145 bps over Treasuries.

The financial services company is based in New York City.

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