World Bank prices $500 million floaters; corporates quiet; Walmart notes firm; Bayer eases

By Cristal Cody

Tupelo, Miss., June 25 – Corporate bond issuers reportedly stayed out of the high-grade primary market on Monday, while the International Bank for Reconstruction and Development sold $500 million of floating-rate notes.

Syndicate sources forecast about $15 billion to $20 billion of bond supply this week with the potential for much less.

“Now supply volumes are set to slow seasonally to a weekly range of just $5-15 [billion], due to the Independence Day holiday and 2Q earnings season related blackouts, before picking up with bank issuance the third week of July,” according to a BofA Merrill Lynch note released Monday.

More than $43 billion of high-grade bonds came to the primary market last week, including two merger and acquisition-related debt deals from Bayer AG and Walmart Inc. Most of the bond offerings for deals set to close this summer are now completed, a source said.

In the secondary market, Bayer’s notes were mixed but quoted softer than issuance.

Walmart’s notes tightened on Monday.

Credit spreads widened over the session. The Markit CDX North American Investment Grade 30 index eased about 2 basis points to a spread of 67 bps.

Growing trade war fears remained in focus. Stocks ended the day lower. The Dow Jones Industrial Average closed off 328 points. Treasury yields also declined on Monday.

World Bank sells notes

World Bank sold $500 million of the global floating-rate notes due March 18, 2020 (Aaa/AAA/AAA) on Monday at one-month Libor plus 3 bps, according to a market source.

BofA Merrill Lynch was the bookrunner.

The global development financing cooperative is based in Washington, D.C.

Bayer notes soft

In the secondary market, Bayer’s 3.875% notes due Dec. 15, 2023 eased about 1 bp from Friday to 118 bps bid, a source said.

The company sold $2.25 billion of the five-year notes on June 18 at a spread of 115 bps over Treasuries.

Bayer’s tranche of 4.375% notes due Dec. 15, 2028 were quoted in the 158 bps bid area.

The 10-year notes traded on Friday at 155 bps bid, 152 bps offered.

Bayer sold $3.5 billion of the notes in the June 18 offering at a spread of 155 bps over Treasuries.

The health care and agriculture products company is based in Leverkusen, Germany.

Walmart improves

Walmart’s 3.4% notes due June 26, 2023 firmed about 1 bp on Monday to 60 bps bid in secondary trading, a market source said.

The company sold $2.75 billion of the notes on Wednesday at a 60 bps spread over Treasuries.

Walmart’s $2.75 billion of 3.7% notes due June 26, 2028 tightened about 3 bps from Friday to 77 bps bid, the source said.

The notes priced with a Treasuries plus 80 bps spread.

The discount retailer is based in Bentonville, Ark.

© 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.