Exxon Mobil, Bank of America, SunTrust pack deal session; Kellogg strong

By Cristal Cody

Tupelo, Miss., Feb. 29 – Investment-grade primary action stayed strong over the last session of February, led by Exxon Mobil Corp.’s $12 billion eight-tranche offering of notes on Monday.

The company priced $750 million of floating-rate notes due March 1, 2018 at three-month Libor plus 60 bps.

Exxon Mobil sold a $1 billion three-year fixed-rate tranche of 1.439% notes with a 65 bps over Treasuries spread.

The company printed a $250 million tranche of floating-rate notes due March 1, 2019 at Libor plus 78 bps.

Exxon Mobil sold a five-year fixed-rate tranche of 1.708% notes with a spread of 80 bps over Treasuries.

The company priced $2.5 billion of 2.222% notes due March 1, 2021 with a spread of 100 bps over Treasuries.

A seven-year tranche of 2.726% notes priced with a spread of 120 bps plus Treasuries.

The company sold $2.5 billion of 3.043% 10-year notes with a spread of 130 bps over Treasuries.

Exxon Mobil priced $2.5 billion of 4.114% 30-year bonds at 150 bps plus Treasuries.

During the session, Bank of America Corp., Hyatt Hotels Corp., SunTrust Banks, Inc., Public Service Electric & Gas Co. and Indiana Michigan Power Co. also priced new bonds.

Credit spreads continued to improve over the day after tightening 2 basis points on Friday. The Markit CDX North American Investment Grade index firmed 3 bps to a spread of 107 bps.

In the secondary market, Kellogg Co.’s senior notes (Baa2/BBB/BBB) improved from Friday.

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