Amazon.com, Lear in bond deal pipeline; McCormick notes tighten; Duke Energy softens

By Cristal Cody

Tupelo, Miss., Aug. 11 – Investment-grade primary market activity stayed light on Friday following a heavy week of bond issuance.

Amazon.com, Inc. signaled plans to market a benchmark multi-tranche offering of senior notes in the week ahead.

Also, Lear Corp. is expected to price new senior notes after the company finished a two-day round of investor calls on Friday.

The company filed a prospectus with the Securities and Exchange Commission on Thursday for common stock, preferred stock, debt securities, warrants, subscription rights, stock purchase contracts or stock purchase units.

Issuance is expected to be steady over the coming week with about $25 billion of supply forecast, depending on market tone, a source said.

In the secondary market, new issues priced earlier in the week were mixed on Friday.

McCormick & Co., Inc.’s $2.5 billion of senior notes (Baa2/BBB/) sold in four tranches on Wednesday to help fund its acquisition of the condiments division of Reckitt Benckiser LLC traded about 1 basis point to 8 bps better than issuance.

Duke Energy Corp.’s $1.75 billion of senior notes (Baa1/BBB+/BBB+) priced in three tranches at the start of the week softened about 5 bps to 7 bps.

The Markit CDX North American Investment Grade index ended modestly tighter at a spread of 62 bps.

Amazon.com to offer notes

Amazon.com (Baa1/AA-/) intends to hold fixed-income investor calls on Monday for a benchmark multi-tranche senior note offering, according to a market source.

Deal size for the Rule 144A and Regulation S offering is estimated in the $10 billion to $15 billion area.

BofA Merrill Lynch, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the arrangers.

Amazon.com announced in June it plans to purchase Whole Foods Market Inc. for $13.7 billion in cash.

The online commerce company is based in Seattle.

Lear eyes deal

Lear (Baa3/BBB-/) is holding a two-day round of fixed-income investor calls that ended on Friday ahead of a new senior note offering, according to a market source.

BofA Merrill Lynch, Barclays and Citigroup Global Markets Inc. are the arrangers.

Lear is a Southfield, Mich.-based manufacturer and distributor of automotive seating and electrical systems.

McCormick tightens

McCormick’s 3.4% notes due Aug. 15, 2027 tightened to 114 bps bid, 111 bps offered in the secondary market, a source said.

The $750 million offering of 10-year notes were sold on Wednesday at a Treasuries plus 120 bps spread.

McCormick’s $300 million tranche of 4.2% notes due Aug. 15, 2047, priced at a spread of Treasuries plus 140 bps, were quoted on Friday at 132 bps bid, 129 bps offered.

McCormick is a spice company based in Sparks, Md.

Duke Energy eases

Duke Energy’s 3.15% notes due Aug. 15, 2027 softened to 100 bps bid, 97 bps offered in secondary trading, a market source said.

The company sold $750 million of 10-year notes on Monday at a Treasuries plus 93 bps spread.

Duke Energy’s 3.95% notes due Aug. 15, 2047 eased to 119 bps bid, 116 bps offered.

The 30-year notes priced in a $500 million tranche on Monday with a Treasuries plus 113 bps spread.

The energy company is based in Charlotte, N.C.

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