California Edison, Travelers, Regency Centers, EBRD among issuers; credit spreads ease

By Cristal Cody

Tupelo, Miss., Feb. 28 – Several high-grade issuers tapped the primary market on Wednesday for a third consecutive session of strong supply.

Issuers including Southern California Edison Co., Travelers Cos., Inc., Regency Centers, LP, European Bank for Reconstruction and Development and Municipality Finance PLC priced new bonds.

Also, Mizuho Financial Group, Inc., Bank of America Corp., Ford Motor Credit Co. LLC and Occidental Petroleum Corp. were planning new issues on Wednesday.

Goldman Sachs Group Inc. tapped the Canadian high-grade primary market on Wednesday in its first maple bond offering of the year. Goldman sold C$750 million of senior floating-rate notes due July 27, 2022 (A3/BBB+/DBRS: A) at par to yield CDOR plus 54 basis points, a source said.

SNC-Lavalin Group Inc. also came with C$525 million of senior debentures (/BBB/DBRS: BBB) in three tranches in a private placement offering in Canada on Wednesday, according to a market source and a news release.

Investment-grade issuance has been strong over the past three sessions with deal volume expected in the $25 billion to $30 billion range for the week.

“The markets turned a little into red here at the close,” a syndicate source said. “We’ll see what happens overnight but it feels like it might be a rest tomorrow.”

The Markit CDX North American Investment Grade 29 index eased about 1 basis point to close at a spread of 55 bps.

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