Broadridge upsizes; primary activity thins; Duke bonds tighten; credit spreads improve

By Cristal Cody

Eureka Springs, Ark., June 21 – Investment-grade primary action remained thin over Tuesday’s session with one corporate deal priced from Broadridge Financial Solutions, Inc.

The company sold an upsized $500 million offering of 3.4% 10-year notes with a spread of 175 basis points over Treasuries.

The notes (Baa1/BBB+/BBB+) were talked at 180 bps, plus or minus 5 bps, over Treasuries.

The deal was upsized from $400 million.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG, Wells Fargo Securities LLC, BNP Paribas Securities Corp., TD Securities (USA) Inc. and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to repay outstanding debt under the company’s senior credit facility, to finance acquisitions and for general corporate purposes.

Less than $10 billion of high-grade volume is forecasted for the week with market participants expected to stay mostly on the sidelines until after the Brexit vote on Thursday.

U.S. traders also were expected to be focused on Federal Reserve chair Janet Yellen’s semiannual congressional monetary policy reports on Tuesday and Wednesday.

The Markit CDX North American Investment Grade index closed the day 2 basis points tighter at a spread of 78 bps.

In the secondary market, Duke Energy Ohio, Inc.’s new 3.7% first mortgage bonds due 2046 that priced on Monday traded 2 bps better than issuance earlier in the day.

Duke Energy Progress Inc.’s existing bonds traded about 3 bps to 4 bps tighter over the session.

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