High-grade primary expected to pick up pace after holiday; H.J. Heinz bonds mostly tighter

By Aleesia Forni

Virginia Beach, July 1 – High-grade bond spreads were flat to wider on Wednesday, while continued concerns over Greece’s debt crisis helped keep activity in the investment-grade market to a minimum.

Issuers remained on the sidelines on Wednesday and will likely continue to do so until after the July 4 holiday-extended weekend.

Meanwhile, the Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 68 bps.

Tranches of H.J. Heinz Co.’s recently priced $10 billion seven-part bond offering traded mostly better during the session, according to a market source.

H.J. Heinz’s $1 billion of 1.6% two-year notes were around 3 bps tighter at 87 bps offered on Wednesday.

The notes sold with a spread of Treasuries plus 95 bps on June 23.

The company’s $1.5 billion of 2% three-year notes were quoted 1 bp tighter at 94 bps offered after pricing with a spread of 100 bps over Treasuries.

The company’s $1.5 billion of 2.8% five-year notes, which sold with a spread of Treasuries plus 115 bps, were 2 bps wider at 111 bps offered.

A $2 billion 3.95% 10-year note traded 2 bps better at 150 bps offered.

The notes sold with a spread of Treasuries plus 155 bps.

The Pittsburgh-based food processing company’s $1 billion 5% 20-year note was quoted 3 bps better at 173 bps offered after pricing with a spread of Treasuries plus 185 bps.

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