Summer lull in full swing; Dollar General improves, while Family Dollar trades lower

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 22 – A quiet week ended Friday with no new deals pricing, as the market focused on Federal Reserve Chair Janet Yellen’s speech at the economic symposium in Jackson Hole, Wyo., as well as on Wednesday’s Federal Open Market Committee minutes.

The week saw roughly $9.1 billion of investment-grade paper price, topping expectations of $5 billion and due largely to Thursday’s $4.5 billion three-part trade from Bank of America Corp.

A similar issuance pace is expected for the week ahead, with activity to resume after the Labor Day holiday weekend.

Canadian primary activity remained quiet with one deal from Enbridge Gas Distribution Inc. brought over the week, though bank and financial paper offerings may pick up in the weeks ahead, according to a market source on Friday.

The Markit CDX North American Investment Grade series 22 index eased 2 basis points to a spread of 58 bps.

Family Dollar Stores, Inc.’s 5% senior notes due 2021 traded lower over the day, a market source said.

The discount retailer rejected Dollar General Corp.’s $9.7 billion cash takeover bid on Thursday and reiterated support for a merger with Dollar Tree Inc., which plans to acquire the discount retailer for $8.5 billion in cash and stock.

Dollar General’s 3.25% senior notes due 2023 improved in secondary trading over the session, according to a market source.

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