Morning Commentary: eBay in investment-grade deal pipeline; existing eBay notes mixed

By Cristal Cody

Tupelo, Miss., May 30 – High-grade bond market activity picked up early Tuesday following the long Memorial Day weekend with a five-part offering of notes in the deal pipeline from eBay Inc.

eBay (Baa1/BBB+/BBB) plans to price three tranches of fixed-rate notes and two tranches of floating-rate notes.

The company previously was in the primary market on March 2, 2016 when it priced $1.5 billion of two- and six-year notes.

About $20 billion to $25 billion of new supply is expected by syndicate sources for the short week.

eBay’s notes were mixed in the secondary market early Tuesday.

The company’s 2.5% notes due March 9, 2018 improved to 100.8 from 100.73 on Friday, according to a market source.

The company sold $750 million of the notes in the March 2, 2016 offering at 99.897 to yield 2.553%, or a spread of Treasuries plus 170 basis points.

eBay’s 3.8% notes due March 9, 2022 slipped to 104.76 in early secondary trading from 104.85 on Friday.

The San Jose, Calif.-based online commerce company sold $750 million of the notes in the March 2, 2016 offering at 99.772 to yield 3.843%, or a spread of Treasuries plus 250 bps.

On Friday, $6.27 billion of high-grade issues were traded, Trace reported.

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