Lowe’s, RBC, Fannie Mae open week; Occidental Petroleum, ConocoPhillips tightens

By Aleesia Forni and Cristal Cody

New York, April 11 – Lowe’s Cos. Inc., Royal Bank of Canada and Fannie Mae took advantage of supportive market conditions to bring new deals to market on Monday.

Lowe’s offered $3.3 billion of notes in four parts to help fund its planned acquisition of RONA Inc., a Canadian distributor and retailer of hardware, home improvement and gardening products.

The acquisition is valued at $2.3 billion.

Other proceeds from the sale will be used to repay debt and for general corporate purposes.

Elsewhere in the primary, Royal Bank of Canada offered $1.75 billion of three-year notes in fixed- and floating-rate tranches.

And Fannie Mae announced it auctioned a $1 billion reopening of its existing three-year notes on Monday.

Looking ahead, sources are anticipating around $15 billion of supply this week as earnings season gets underway.

Investment-grade energy bonds traded mostly better on Monday.

Occidental Petroleum Corp.’s 3.4% senior notes due 2026 firmed 6 bps over the day.

ConocoPhillips Co.’s 4.95% notes due 2026 headed out 8 bps better in the secondary market.

Exxon Mobil Corp.’s 3.043% notes due 2026 tightened 2 bps during the session.

Duke Energy Carolinas LLC’s 2.5% first and refunding mortgage bonds due 2023 were unchanged on Monday.

The Markit CDX North American Investment Grade index ended 1 bp tighter at a spread of 81 bps.

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