BP Capital Markets, Bank of Nova Scotia price notes; supply light; credit spreads ease

By Cristal Cody

Tupelo, Miss., Feb. 6 – BP Capital Markets America Inc. and Bank of Nova Scotia priced more than $3 billion of notes in the high-grade primary market on Wednesday.

BP Capital Markets America sold $2 billion of senior notes in two tranches, including a tap of its 10-year notes that were first brought to the market in November.

Bank of Nova Scotia priced $1.25 billion of five-year senior notes.

In other supply, Hydro-Quebec priced a C$500 million reopening of its 4% debentures due Feb. 15, 2055 (Aa2/AA-/DBRS: A) in the Canadian primary market on Wednesday.

Deal volume has thinned this week with more than $10 billion of investment-grade bonds priced over the first three sessions.

Market sources on average expected about $15 billion to $20 billion of high-grade supply for the week.

In the secondary market, new issues priced this week have traded mostly flat to tighter than issuance, a source said.

Verizon Communications Inc.’s 3.875% notes due Feb. 8, 2029 firmed about 4 bps to the 116 bps area.

Verizon sold $1 billion of the notes (Baa1/BBB+/A-) on Tuesday at a spread of Treasuries plus 120 bps.

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