For a moment, Peter thought that he had made the wrong choice in drawing his sword, but when Neal reacts to the gesture instead of the actual drawing of it, he knew that he made the right choice. He's almost amused by the response, knowing that Neal is unaware as to just how prepared he is when it comes to protecting himself from other immortals.

"Neal, you can take this sword. I keep a spare in the car." There's more than what Peter's saying, but he's not planning on bringing it up with Neal right now. "You won't be committing assisted suicide by taking it."