Starbucks, ConEd, Kansas City Southern tap market; AbbVie firms; credit spreads soften

By Cristal Cody

Eureka Springs, Ark., May 11 – The high-grade primary market saw new deals on Wednesday from issuers including Starbucks Corp., Consolidated Edison, Inc., Kansas City Southern and Boardwalk Pipelines, LP.

Starbucks priced a $250 million tap of its 2.1% notes due Feb. 4, 2021 at 102.391 to yield 1.563% and a spread of 37 basis points plus Treasuries.

The company originally sold the notes on Feb. 1 in a $500 million tranche at 99.943 to yield 2.112% and a spread of 75 bps over Treasuries. The total outstanding is $750 million.

Starbucks also priced $500 million of 2.45% 10-year senior notes at 99.768 to yield 2.476% and a spread of 75 bps over Treasuries.

BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC were the bookrunners.

Proceeds from the add-on will be used for general corporate purposes. Proceeds from the new notes will be used for eligible sustainability projects.

Consolidated Edison brought $500 million of five-year debentures.

Boardwalk Pipelines sold $550 million of 10-year notes.

Kansas City Southern tapped the market with a $250 million sale of 10-year notes.

Credit spreads softened on Wednesday. The Markit CDX North American Investment Grade index eased 2 basis points to a spread of 82 bps.

AbbVie Inc.’s notes priced on Monday were tighter in secondary trading.

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