International Flavors prices in quiet post-holiday primary; notes firm in secondary market

By Aleesia Forni and Andrea Heisinger

New York, April 1 - A new bond sale from International Flavors & Fragrances Inc. on Monday led off what is expected to be a week of modest issuance in the investment-grade bond market.

International Flavors sold $300 million of 10-year senior notes.

The week is expected to see between $10 billion and $15 billion of supply. Issuance is not expected to get going until Tuesday or Wednesday, sources said, due to a holiday in Europe and people continuing to be on vacation.

There was also the escalating situation between North Korea and South Korea, which left Monday's tone a little off.

"Asia was pretty soft this morning," a market source said. "We'll see how the tone the rest of the week goes."

There are more bond sales expected on Tuesday as some people are back in their seats following a long holiday weekend, and the European markets reopen following an Easter Monday closing.

Sources reported a handful of trades possible for Tuesday and beyond.

The Markit CDX Series 20 North American Investment Grade index was unchanged at a spread of 90 bps.

The secondary market saw International Flavors notes firm 2.5 bps in trading.

Investment-grade bank and brokerage credit default swaps costs were wider on Monday.

Bank of America's CDS costs were 6 bps wider at 134 bps bid, 139 bid. Citigroup's CDS costs were 9 bps wider at 116 bps bid, 121 bps offered. J.P. Morgan's CDS costs rose 2 bps to 86 bps bid, 91 bps offered. Wells Fargo's CDS costs widened 2 bps to 71 bps bid, 76 bps offered.

Merrill Lynch's CDS costs were 3 bps wider at 103 bps bid, 113 bps offered. Morgan Stanley's CDS costs rose 3 bps to 147 bps bid, 152 bps offered. Goldman Sachs' CDS costs widened 7 bps to 137 bps bid, 142 bps offered.

International's 10-years

International Flavors & Fragrances was in the day's session with a $300 million sale of 3.2% 10-year senior notes (Baa1/BBB/) priced at 137.5 bps over Treasuries, according to an FWP with the Securities and Exchange Commission.

A trader quoted the notes 2.5 bps better at 135 bps bid.

Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC were bookrunners.

Proceeds are being used for general corporate purposes, including working capital.

The maker of flavor and fragrances for food and consumer products is based in New York City.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.