Dominion Resources, Huntington, Caterpillar, Paccar, World Bank price; credit spreads firm

By Cristal Cody

Eureka Springs, Ark., Aug. 4 – New high-grade bond deals came to the primary market on Thursday from issuers including Dominion Resources, Inc., Huntington Bancshares Inc., Caterpillar Financial Services Corp. and Paccar Financial Corp.

International Bank for Reconstruction and Development (World Bank) (Aaa/AAA) also priced the bank’s second U.S. dollar global bond deal of the year, a $1.5 billion offering of 1.125% four-year global bonds placed at a spread of 35.3 basis points over Treasuries.

The order book closed in excess of $1.9 billion with more than 45 accounts participating.

“The high-quality order book is a clear signal to the faith placed by investors in IBRD’s credit quality and status despite coming in a less-traditional maturity and at the height of the summer,” Adrien de Naurois, managing director of SSA syndicate at bookrunner BofA Merrill Lynch, said in the release.

The Markit CDX North American Investment Grade index ended the session 2 bps tighter at a spread of 73 bps.

Google holding company Alphabet Inc.’s 1.998% notes due 2026 that priced on Tuesday traded 2 bps tighter earlier in the secondary market.

Microsoft Corp.’s senior notes (Aaa/AAA) that priced on Monday traded about 1 bp to 5 bps better early Thursday.

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