Morning Commentary: New high-grade bonds remain tight; Dollar General, S.C. Johnson firm

By Cristal Cody

Tupelo, Miss., Oct. 16 – New investment-grade bonds priced over the week remained tight in secondary trading early Friday.

Dollar General Corp.’s $500 million offering of 4.15% senior notes due 2025 printed on Thursday traded 6 basis points better in the secondary market.

S.C. Johnson & Son Inc.’s 4.75% senior notes due 2046 priced on Tuesday firmed 8 bps.

The amount of high-grade issues traded dropped to $8.7 billion on Thursday, down from nearly $16 billion traded on Wednesday, according to Trace.

The Markit CDX North American Investment Grade 25 index ended the previous session 2 bps tighter at a spread of 83 bps.

Dollar General improves

Dollar General’s 4.15% senior notes due 2025 traded better at 209 bps offered, a market source said.

Dollar General sold $500 million of the notes (Baa3/BBB) on Thursday at a spread of Treasuries plus 215 bps.

The discount retailer is based in Goodlettsville, Tenn.

S.C. Johnson stronger

S.C. Johnson & Son’s 4.75% bonds due 2046 traded early Friday at 168 bps offered, tighter than where the notes were seen on Thursday at 176 bps offered, according to a market source.

The company sold $850 million of the notes (A/A-) on Tuesday at 187.5 bps over Treasuries.

The consumer products company is based in Racine, Wis.

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