Morning Commentary: Actavis notes tighten in secondary; Exxon Mobil slightly better

By Cristal Cody

Tupelo, Miss., March 5 – High-grade corporate bonds priced over the week by Actavis Funding SCS and Exxon Mobil Corp. tightened in secondary trading, according to market sources early Thursday.

Actavis Funding’s senior notes (Baa3/BBB-/BBB-) that priced in a mammoth $21 billion 10-part deal on Tuesday tightened more than 10 basis points in secondary trading.

Exxon Mobil’s senior notes (Aaa/AAA/) brought on Tuesday traded modestly better.

The Markit CDX North American Investment Grade index was flat at a spread of 62 bps.

Actavis tight

Actavis Funding’s 4.55% notes due 2035 firmed to 173 bps offered in secondary trading, according to a market source.

The company sold $2.5 billion of the notes on Tuesday at Treasuries plus 190 bps.

Actavis Funding’s tranche of 4.75% bonds due 2045 traded better at 193 bps offered, the source said.

Actavis sold $2.5 billion of the bonds at a spread of Treasuries plus 210 bps.

The company is a subsidiary of Dublin-based pharmaceutical company Actavis plc.

Exxon Mobil improves

Exxon Mobil’s 2.709% notes due 2025 traded modestly tighter at 57 bps offered, a market source said.

The company sold $1.75 billion of the 10-year notes Treasuries plus 58 bps on Tuesday.

Exxon Mobil’s tranche of 3.567% bonds due 2045 firmed to 81 bps offered, according to the market source.

The bonds priced in a $1 billion offering on Tuesday at 85 bps over Treasuries.

The oil and gas company is based in Irving, Texas.

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