Investment-grade primary market quiet; Hershey bonds tighten; Amazon.com notes firm

By Cristal Cody

Tupelo, Miss., Dec. 18 – Activity was light on Monday with no high-grade bond issuance reported in the primary market.

Little issuance is expected ahead of the Christmas Day holiday with market participants forecasting up to about $2 billion of volume at most for the week.

In other activity, Hershey Co. announced plans to acquire health food snacks maker Amplify Snack Brands for $12 per share in cash.

Hershey’s bonds tightened about 1 basis point to 4 bps in the secondary market during the session, a source said.

The company’s 2.3% notes due Aug. 15, 2026 traded 4 bps better at 69 bps bid on Monday.

In other trading on Monday, AT&T Inc.’s 3.9% notes due Aug. 14, 2027 firmed about 1 bp.

The company was expected to close this year on its $85.4 billion cash and stock acquisition of Time Warner Inc.

Time Warner’s 2.95% notes due July 15, 2026 (Baa2/BBB/BBB+) firmed 2 bps in secondary trading on Monday.

Elsewhere, Amazon.com, Inc.’s 3.15% notes due Aug. 22, 2027 remain better than issuance in the secondary market and came in 5 bps during the session.

Food retailer Kroger Co.’s 3.7% senior notes due 2027 improved about 3 bps over the day.

The Markit CDX North American Investment Grade 29 index tightened nearly 1 bp to end at a spread of 49.5 bps.

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