Primary action slows; Myriad prices; Walgreens firms; General Motors Financial tightens

By Cristal Cody

Tupelo, Miss., June 29 – Primary activity slowed on Thursday with one investment-grade bond deal priced and little volume expected until after the Fourth of July holiday.

Myriad International Holdings BV tapped the primary market with a $1 billion offering of 10-year senior notes.

Syndicate desks are expected to be thinly staffed on Friday with bond markets set to close early on Monday and stay closed on Tuesday for the holiday, a source said.

About $5 billion to $10 billion of supply is expected by market sources in the upcoming week and about $80 billion total of bond issuance forecast for July.

In other market activity on Thursday, the three-month Libor yield set the highest yield since March 2009 at 1.298%, a source said.

The Markit CDX North American Investment Grade index closed the day about 2 basis points softer at a spread of 62 bps.

Walgreens Boots Alliance Inc.’s notes (Baa2/BBB/) traded about 1 bp to 2 bps tighter over the day following the company’s announcement it would abandon its plan to acquire Rite Aid Corp. and instead purchase 2,186 of Rite Aid’s stores.

New issues priced earlier in the week traded mostly better in the secondary market on Thursday.

General Motors Financial Co. Inc.’s $2.25 billion of senior notes priced on Tuesday in three tranches tightened about 6 bps to 13 bps.

Tanger Properties LP’s 3.875% senior notes due July 15, 2027 priced in a $300 million sale on Wednesday firmed about 1 bp.

Myriad prices $1 billion

Myriad International Holdings sold $1 billion of 4.85% 10-year senior notes (Baa3/BBB-/) on Thursday at a spread of Treasuries plus 258.3 bps, a market source said.

The notes were talked to price in the Treasuries plus 270 bps area.

Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the lead managers.

Myriad International is a Hoofddorp, Netherlands-based holding company and subsidiary of Cape Town, South Africa-based mass media company Naspers Ltd.

Walgreens modestly better

Walgreens’ 3.45% notes due June 1, 2026 firmed about 1 bp to 122 bps bid, according to a market source.

The notes headed out flat on Wednesday at 123 bps bid.

The retailer sold $1.9 billion of the notes on May 26, 2016 at a spread of 165 bps over Treasuries.

Walgreens Boots Alliance is a subsidiary of Deerfield, Ill.-based drugstore operator Walgreens Co.

GM Financial tightens

The new floating-rate notes due June 30, 2022 that General Motors Financial (Baa3/BBB/BBB) priced in a $500 million offering on Tuesday at Libor plus 131 bps tightened to Libor plus 120 bps bid, 118 bps offered in the secondary market, a source said.

General Motors Financial’s 3.15% notes due June 30, 2022 traded on Thursday at 124 bps bid, 122 bps offered.

The company sold $1.25 billion of the five-year notes at a spread of 137 bps over Treasuries.

General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.

Tanger firms

Tanger Properties’ 3.875% notes due July 15, 2027 were seen on Thursday in the secondary market at 169 bps bid, 167 bp offered, a source said.

The company sold $300 million of the notes (Baa1/BBB+) on Wednesday at a spread of Treasuries plus 170 bps.

The outlet center real estate investment trust is based in Greensboro, N.C.

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