Primary activity resumes with GM, Scotiabank, BMO; Monsanto firms; energy bonds tighten

By Aleesia Forni and Cristal Cody

Virginia Beach, April 7 – The investment-grade bond market sprung back to life on Tuesday, with $7.25 billion of new paper pricing from companies including General Motors Financial Co. Inc., Bank of Nova Scotia, Bank of Montreal and Monsanto Co.

General Motors Financial was in the market with a $2.4 billion three-part split-rated new issue.

Bank of Montreal garnered around $2.4 billion of orders for its $1.25 billion two-part offering of senior notes on Tuesday.

Scotiabank priced a $1.1 billion five-year covered bond in line with price talk.

Meanwhile, Monsanto’s upsized $800 million offering attracted an order book that was around four times oversubscribed.

Investment-grade bonds were mostly better on the day with energy bonds tightening 3 basis points to 5 bps in secondary trading, sources said on Tuesday.

Exxon Mobil Corp.’s 2.709% notes due 2025 firmed 5 bps over the day.

Southwestern Energy Co.’s 4.95% senior notes due 2025 tightened 3 bps.

New issues were mixed in aftermarket trading as the session closed.

Monsanto’s 2.85% notes due 2025 traded 2 bps better.

General Motors Financial’s tranche of 3.45% notes due 2022 were seen 1 bp softer on the bid side.

In other trading, Apple Inc.’s 2.5% notes due 2025 were flat.

Microsoft Corp.’s 2.7% notes due 2025 eased 3 bps.

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