Maturity: 15 March 2017
Issue/re-offer price: 99.907
Spread: 80bp over US Treasuries
Launch date: Thursday 8 March
Payment date: 13 March
Sole manager: BAS.
"...the deal came at 80bp over which is 27bp over Libor compared to the 20bp over Libor that you would expect BoA to pay. The transaction is wider now at 82/80bp.
I would say they paid about a 6bp premium, whereas CIT and GE paid no new issue concession at all by sticking to the short floating rate end of the curve.
GECC did $4bn at 3bp over Libor which is exactly where they priced themselves last time they were in the market.
HSBC did a floater at 8bp over Libor., which was great. Basically all the other frequent issuers except for BoA avoided the fixed rate market because they don't want to pay wider spreads on a Libor basis than they have in the recent past.
When volatility dies down and corporate spreads trade close to swap spreads, then you will see frequent issuers coming in to the market to do term deals.