Investment-grade bond issuance quiets as year wraps up; Hershey notes steady; Mizuho firms

By Cristal Cody

Tupelo, Miss., Dec. 19 – Deal action appears mostly finished for the year in the high-grade bond market with no reported issuance for a second consecutive session on Tuesday.

Attention was focused on the House and Senate votes Tuesday on the tax reform bill.

The Markit CDX North American Investment Grade 29 index ended mostly softer at a spread of 49.6 basis points.

In the secondary market, Hershey Co.’s bonds (A1/A/) were mostly flat after tightening on Monday following the company’s announcement it will acquire health food snacks maker Amplify Snack Brands in a deal valued at $1.6 billion, including cash and debt. The transaction is expected to close in the first quarter of 2018.

The company’s 2.3% notes due Aug. 15, 2026 were unchanged on Tuesday at 69 bps bid.

The Hershey, Pa.-based maker of chocolate and confectionery products sold $500 million of the notes on Aug. 2, 2016 at a spread of 80 bps over Treasuries.

Elsewhere in the secondary market, bank and financial paper traded flat to mostly better on Tuesday, sources reported.

Mizuho Financial Group, Inc.’s 3.663% senior notes due Feb. 28, 2027 firmed 1 bp to 102 bps bid during the session.

The Tokyo-based bank holding company sold $500 million of the notes on Feb. 22, 2017 (A1/A-/) at par to yield a Treasuries plus 125 bps spread.

© 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.