High-grade primary quiet; steady issuance forecast; Activision, Tyson firm; Coca-Cola mixed

By Cristal Cody

Tupelo, Miss., May 26 – High-grade bond issuers took Friday off following nearly $40 billion of supply priced over the week.

The financial markets closed at 2 p.m. ET and will remain closed on Monday for the Memorial Day holiday.

Syndicate sources expect about $20 billion to $25 billion of volume in the shortened week ahead with about $90 billion to $100 billion of total supply for June.

The Markit CDX North American Investment Grade index closed mostly unchanged at a spread of 62 basis points.

Activision Blizzard, Inc.’s $1.25 billion of senior notes due 2022, 2027 and 2047 (Baa2/BBB/) sold on Tuesday firmed about 1 bp to 4 bps in the secondary market.

Tyson Foods Inc.’s $2.75 billion four-tranche offering of senior notes (Baa2/BBB/BBB) priced on Tuesday tightened about 4 bps to 8 bps.

Coca-Cola Co.’s $1 billion of senior notes (Aa3/AA-/A+) brought to the market in two tranches on Monday traded flat to about 2 bps tighter than issuance on Friday.

Activision Blizzard firms

Activision Blizzard’s 3.4% notes due June 15, 2027 were seen in secondary trading at 117 bps bid, 114 bps offered, a market source said.

Activision priced $400 million of the 10-year notes on Tuesday at a Treasuries plus 120 bps spread.

Activision Blizzard is a Santa Monica, Calif.-based developer and distributor of video game content and services.

Tyson Foods tightens

Tyson Foods’ 3.55% notes due June 1, 2027 firmed to 124 bps bid, 121 bps offered, according to a market source on Friday.

The $1.35 billion tranche of 3.55% 10-year notes priced on Tuesday at a spread of Treasuries plus 128 bps.

Tyson’s 4.55% notes due June 1, 2047 traded at 158 bps bid, 155 bps offered.

Tyson sold $750 million of the 30-year notes at a Treasuries plus 163 bps spread.

Tyson is a Springdale, Ark.-based food company.

Coca-Cola mixed

Coca-Cola’s 2.2% notes due May 25, 2022 were quoted on Friday in the secondary market at 43 bps bid, 40 bps offered, according to a market source.

The company priced $500 million of the five-year notes on Monday a spread of 45 bps over Treasuries.

The 2.9% notes due May 25, 2027 were wrapped around issuance at 70 bps bid, 68 bps offered.

Coca-Cola sold $500 million of the 10-year notes in Monday’s offering at Treasuries plus 70 bps.

The beverage company is based in Atlanta.

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