High-grade trading thins; BB&T sells $1.5 billion notes; Freeport LNG plans roadshow

By Cristal Cody

Tupelo, Miss., May 31 – High-grade primary action stayed thin on Thursday with a $1.5 billion two-tranche offering of notes priced during the session from BB&T Corp.

The company priced $500 million of 3.2% long three-year notes at 99.881 and a spread of Treasuries plus 70 bps.

BB&T sold $1 billion of 3.7% seven-year notes at 99.798 and a Treasuries plus 95 bps spread.

BB&T Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the bookrunners.

The deal follows BB&T’s $250 million sale of three-year senior medium-term floating-rate notes on Friday before the Memorial Day holiday.

The Markit CDX North American Investment Grade 30 index eased about 1 basis point to close at a spread of 66 bps.

Supply has been thin over the short week amid volatility in the financial markets on concerns with Italy’s government and the U.S. tariffs on steel and aluminum imports announced Thursday. In addition, the U.S. non-farm payroll report for May will be released on Friday.

In the previous session, $3.4 billion of high-grade bonds priced, while supply was quiet on Tuesday.

Syndicate sources had expected about $20 billion of volume over the week.

Coming up in the week ahead, Freeport LNG plans to hold a deal roadshow.

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