FedEx, Avnet, El Paso Electric price; light deal volume forecast; AT&T firms; Cisco eases

By Cristal Cody

Eureka Springs, Ark., March 21 – FedEx Corp., Avnet, Inc. and El Paso Electric Co. priced $2.7 billion of investment-grade bonds on Monday.

FedEx sold $2 billion of notes in two tranches in a deal that was about five times oversubscribed, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $750 million of 3.25% notes due April 1, 2026 with a spread of 135 bps over Treasuries. The 10-year notes priced at 99.796 to yield 3.274%.

FedEx also priced $1.25 billion of 4.55% notes due April 1, 2046 at 99.561 to yield 4.577% and a spread of 185 bps over Treasuries.

Avnet tapped the primary market with a $550 million offering of 10-year notes.

El Paso Electric priced a $150 million add-on to its 5% senior notes due Dec. 1, 2044.

Primary action over the shortened holiday week is expected to be front-loaded with about $10 billion of volume, a source said.

“We could see more trades come forward tomorrow and maybe Wednesday,” the source said.

In the secondary market, AT&T Inc.’s 4.125% notes due 2026 firmed 2 basis points.

Cisco Systems, Inc.’s 2.95% senior notes due 2026 traded 2 bps weaker.

Time Warner Inc.’s 3.875% notes due 2026 were flat over the day.

The new 26 series Markit CDX North American Investment Grade index closed 7 bps tighter at a spread of 78 bps.

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