Canadian Pacific, Hexcel, EDC do deals; telecom bonds mixed; Cytec little changed

By Aleesia Forni and Cristal Cody

Virginia Beach, July 29 – Canadian Pacific Railway Co., Hexcel Corp. and Export Development Canada priced deals on an unsurprisingly quiet Wednesday as the Federal Reserve wrapped up its two-day Federal Open Market Committee meeting.

In its statement, the Fed said that it would need to see “some further improvement” in the job market before raising interest rates.

The slower pace follows Tuesday’s blockbuster session that saw investment-grade issuers raise nearly $13 billion, and brings the week’s total supply to roughly $16.4 billion.

In primary happenings on Wednesday, Canadian Pacific sold an $800 million two-part new issue, with the tranches selling between 15 basis points to 17.5 bps tight of initial price thoughts.

Hexcel sold $300 million of 10-year notes at the tight end of guidance.

Meantime, Export Development Canada sold $500 million of long two-year notes during the session.

AT&T Inc.’s notes (/BBB+/A-) improved about 3 bps to 4 bps in secondary trading over the session.

Verizon Communications Inc.’s 3.5% notes due 2024 traded 2 bps wider.

Cytec Industries Inc.’s senior notes saw little trading after the company announced it will be acquired by Solvay SA for $75.25 per share in cash in a deal valued at $5.5 billion.

The Markit CDX North American Investment Grade index closed 1 bp tighter at a spread of 70 bps.

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