UBS brings $4.5 billion deal; CBS, Burlington price; Consumers Energy mixed; Burlington firms

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 11 – UBS AG, Stamford Branch, CBS Corp., Burlington Northern Santa Fe LLC and American Water Capital Corp. were among the issuers kicking off the investment-grade bond market’s week.

UBS priced $4.5 billion of notes in four parts, and CBS sold $1.75 billion of senior notes in five-, 10- and 30-year tranches.

Meanwhile, Burlington Northern priced a $1.5 billion two-part issue of senior debentures.

American Water sold a $500 million two-part issue of senior notes.

And Consumers Energy Co. priced a two-part $500 million offering of first mortgage bonds in 10- and 50-year tranches.

Sources are expecting around $15 billion to $20 billion of new issuance this week.

Investment-grade bond spreads opened tighter on Monday and continued to firm over the day, informed sources said.

The Markit CDX North American Investment Grade series 22 index narrowed 2 basis points to a spread of 63 bps.

Burlington Northern’s two-part offering tightened in aftermarket trading, a trader said.

Consumers Energy’s 3.125% bonds due 2024 traded about 1 bp tighter, while the company’s tranche of 4.35% bonds due 2064 eased 2 bps in the secondary market, according to a trader.

American Water Capital’s 3.4% notes due 2025 tightened 4 bps on the offered side going out, a trader said.

The new offering from CBS priced late in the day and was not seen in aftermarket trading.

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