EQT prices lone high-grade deal; market quiets for FOMC; spreads weaker; EQT, Tyco firm

By Cristal Cody and Aleesia Forni

Virginia Beach, July 29 – Primary activity was subdued on Tuesday as the Federal Reserve’s Federal Open Market Committee kicked off the first day of its two-day meeting.

The quieter session did see a new bond offering from EQT Midstream Partners LP during the session, with the company pricing a $500 million issue of 10-year senior notes.

Around $4 billion of investment-grade paper has priced so far this week. Sources expect around $15 billion of supply.

In the preferred market, Northern Trust Corp. priced a $400 million offering of series C noncumulative perpetual preferred stock.

Meanwhile, Eagle Bancorp Inc. said it was selling at least $55 million of subordinated notes due 2024.

New York City-based Morgan Stanley tapped the Canadian market on Tuesday with a C$750 million offering of 3.125% seven-year senior notes, an informed source said.

The series F global medium-term notes due Aug. 5, 2021 (Baa2/A-/DBRS: A) priced with a spread of 143 basis points versus the interpolated Government of Canada bond curve.

Investment-grade bond spreads ended mostly softer on the day, according to market sources.

In the secondary market, EQT Midstream’s 4% notes due 2024 traded 1 bp tighter on the bid side, a trader said.

Tyco Electronics Group SA’s senior notes (Baa1/A-/A-) brought in Monday’s session remained firm, according to a trader.

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