Lockheed Martin flooded with orders; Apple firms; bank, financial paper steady

By Aleesia Forni and Cristal Cody

Virginia Beach, Feb. 12 – Lockheed Martin Corp. and European Bank for Reconstruction and Development (EBRD) came to the primary market on Thursday during another strong session for the investment-grade market.

Lockheed Martin was swamped with orders for its first bond offering since 2011, with the new deal’s book reaching more than $10 billion.

All three tranches of the new $2.25 billion deal sold around 15 basis points to 20 bps tight of initial guidance.

Also on Thursday, EBRD priced $1 billion of seven-year notes in line with price talk, and Citigroup Inc. sold a $500 million add-on to its senior notes due 2018.

More than $28.9 billion of new issuance has hit the investment-grade primary bond market this week, topping what was predicted to be around a $25 billion week.

Looking forward, another quiet primary is expected to close out the week on Friday ahead of the extended holiday weekend.

Bonds came in modestly over the day, sources reported.

The Markit CDX North American Investment Grade index firmed 1 bp to a spread of 66 bps.

Apple Inc.’s 2.5% senior notes due 2025 tightened 3 bps in secondary trading.

Bank and financial paper was mostly unchanged.

Bank of America Corp.’s 4% subordinated medium-term notes due 2025 and JPMorgan Chase & Co.’s 3.125% notes due 2025 were flat over the session but stronger than issuance.

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