High-grade primary market quiet; deal supply thins; 3M notes mixed; Goodman tightens

By Cristal Cody

Tupelo, Miss., Sept. 22 – High-grade issuers took the day off on Friday with no reported issuance in the primary market.

Deal volume is expected to stay light in the week ahead with about $20 billion of supply forecast, a source said.

A widely-expected multi-tranche benchmark-sized offering of senior notes from Syngenta AG (Ba2/BBB-/BBB) remains in the deal pipeline.

In the secondary market, 3M Co.’s $2 billion of series F senior medium-term notes (A1/AA-/) priced in three tranches on Thursday were mixed.

Goodman US Finance Three, LLC’s $850 million of dollar-denominated notes (Baa1/BBB+/) sold in two parts on Tuesday traded about 10 basis points better than issuance.

The Markit CDX North American Investment Grade 29 index ended the day modestly softer at a spread of 60 bps.

3M mixed

3M’s 2.25% notes due March 15, 2023 tightened to 36 bps bid, 33 bps offered in secondary trading, a source said on Friday.

The company priced $650 million of the notes on Thursday at a spread of 37 bps over Treasuries.

3M’s $850 million of 2.875% notes due Oct. 15, 2027 softened to 68 bps bid, 66 bps offered.

3M sold $850 million of the 10-year notes at a spread of 67 bps over Treasuries.

The $500 million tranche of 3.625% bonds due Oct. 15, 2047, priced at a spread of 87 bps plus Treasuries, eased to 89 bps bid, 86 bps offered in the secondary market.

3M is a Maplewood, Minn.-based global company that produces products including Post-it notes and Scotch tape.

Goodman US Finance Three’s 3.7% notes due March 15, 2028 traded on Friday at 140 bps bid, 138 bps offered, according to a market source.

The company sold $525 million of the notes on Tuesday at a spread of Treasuries plus 150 bps.

Goodman US Finance Three is an affiliate of the Goodman Group, a Sydney, Australia-based property owner, developer and management company.

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