Cox Communications, Colgate-Palmolive tap primary; FMS Wertmanagement to offer notes Tuesday

By Cristal Cody

Tupelo, Miss., July 24 – High-grade bond issuance stayed light on Monday with two reported corporate issuers in the primary market.

Cox Communications Inc. priced a $2.6 billion three-tranche offering of senior notes.

Colgate-Palmolive Co. sold $500 million of 30-year senior medium-term notes.

Strong issuance is expected during just a couple of the sessions this week with the Federal Reserve’s monetary policy meeting announcement on Wednesday, limiting deal action to mainly Tuesday and Thursday, a source said.

Several issuers are in the near-term deal pipeline, including Crown Castle International Corp., which held global fixed-income investor calls on Monday in advance of an expected dollar-denominated benchmark issue, according to a market source.

FMS Wertmanagement (Aaa/AAA) is expected to tap the primary market on Tuesday with a dollar-denominated offering of five-year global benchmark notes. The notes were initially talked to price in the mid-swaps plus 15 basis points area, according to market source.

The Markit CDX North American Investment Grade index closed nearly 1 bp tighter at a spread of 56 bps.

Cox sells $2.6 billion

Cox Communications priced $2.6 billion of senior notes (Baa2/BBB/BBB+) in three parts on Monday, a market source said.

The company sold $1 billion of 3.15% seven-year notes with a spread of Treasuries plus 110 bps. The notes were talked to price in the Treasuries plus 115 bps area, plus or minus 5 bps.

Cox sold $1 billion of 3.5% 10-year notes at a Treasuries plus 130 bps spread, on the tight side of talk in the Treasuries plus 135 bps area, plus or minus 5 bps.

Cox priced $600 million of 4.6% 30-year bonds with a spread of 180 bps over Treasuries. Price guidance on the bonds was in the Treasuries plus 185 bps area, plus or minus 5 bps.

J.P. Morgan Securities LLC, RBC Capital Markets, LLC and Wells Fargo Securities LLC were the lead managers.

Cox Communications is an Atlanta-based media and cable company and subsidiary of Cox Enterprises Inc.

Colgate-Palmolive prices

Colgate-Palmolive sold $500 million of 3.7% 30-year senior medium-term notes (Aa3/AA-/) on Monday at 99.318 and a spread of Treasuries plus 90 bps, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced on the tight side of guidance in the Treasuries plus 92 bps area.

Goldman Sachs & Co., JPMorgan and Wells Fargo were the active bookrunners.

The consumer products company is based in New York City.

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