Morning Commentary: Under Armour firms; Dell tightens; credit spreads soften

By Cristal Cody

Eureka Springs, Ark., June 9 – Under Armour, Inc.’s $600 million offering of 3.25% senior notes due 2026 that priced on Wednesday traded 6 basis points tighter in the secondary market early Thursday.

Dell, Inc.’s 6.02% senior secured notes due 2026 traded more than 10 bps better than where the bonds were seen on Wednesday.

The Markit CDX North American Investment Grade index opened about 2 bps weaker at a spread of 75 bps.

The three-month Libor yield was unchanged at 66 bps on Thursday.

High-grade secondary trading volume rose to $18.34 billion on Wednesday, compared to $16.9 billion on Tuesday and about $13.17 billion on Monday, according to Trace.

Under Armour firms

Under Armour’s 3.25% notes due 2026 tightened to 154 bps offered in the secondary market, according to a market source.

The company sold $600 million of the 10-year notes on Wednesday at a spread of 160 bps over Treasuries.

Under Armour is a Baltimore-based developer, marketer and distributor of brand performance apparel, footwear and accessories.

Dell tightens

Dell’s 6.02% notes due 2026 were quoted tighter at 386 bps offered early Thursday, according to a market source.

The notes were seen early Wednesday at 397 bps offered in the secondary market.

Dell sold $3.75 billion of the notes (Baa3/BBB-/BBB-) on May 17 at Treasuries plus 425 bps.

The technology and services company is based in Round Rock, Texas.

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