Morning Commentary: PepsiCo tightens; CVS firms; Charter recovers from earlier softness

By Cristal Cody

Tupelo, Miss., July 16 – High-grade bonds traded flat to modestly tighter over the morning on Thursday, according to market sources.

PepsiCo Inc.’s senior notes (A1/A/A) were more than 5 basis points better in the secondary market.

CVS Health Corp.’s senior notes (Baa1/BBB+) traded 1 bp to 4 bps better.

Charter Communications Inc.’s senior secured notes (Ba1/BBB-) improved from softening earlier in the week and traded flat to modestly better.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 67 bps.

PepsiCo tightens

PepsiCo’s 3.5% notes due 2025 traded better at 107 bps early Thursday, a source said.

The 10-year notes priced on Tuesday in a $700 million tranche at a spread of Treasuries plus 115 bps.

The company’s 4.6% bonds due 2045 were seen at 134 bps offered in the secondary market.

PepsiCo sold $500 million of the bonds at Treasuries plus 140 bps on Tuesday.

The global food and beverage company is based in Purchase, N.Y.

CVS firms

CVS Health’s 3.875% notes due 2025 tightened 4 bps from the previous day to 152 bps offered, according to a market source.

The company sold $3 billion of the notes on Monday at a spread of Treasuries plus 155 bps.

CVS Health’s 5.125% bonds due 2045 traded about 1 bp better at 183 bps offered.

The company sold $3.5 billion of the bonds in Monday’s sale at Treasuries plus 190 bps.

The pharmacy retailer is based in Scarsdale, N.Y.

Charter improves

Charter Communications’ 4.908% notes due 2025 firmed 4 bps to 258 bps offered, according to a market source.

The company sold $4.5 billion of the notes on July 9 at Treasuries plus 260 bps.

Charter Communications’ 6.484% notes due 2045 were flat at 329 bps offered.

The company sold $3.5 billion of the 30-year bonds a week ago at Treasuries plus 335 bps.

The provider of cable, internet and phone services is based in Stamford, Conn.

© 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.