Anadarko Petroleum, Royal Bank of Canada, Total System Services, Hyundai Finance tap market

By Cristal Cody

Eureka Springs, Ark., March 14 – Investment-grade bond issuers priced more than $7 billion of notes on Monday, with a $3 billion deal from oil company Anadarko Petroleum Corp. attracting strong demand.

Anadarko Petroleum priced $3 billion of split-rated senior notes due 2021, 2026 and 2046 on Monday.

“The book was exceptionally strong,” a source said. “They did a day of investor marketing on Friday and the final order books were in excess of $19 billion. There’s clearly a bid for some of this paper where a month or so ago the primary market was essentially shut.”

The company’s bonds came in another 15 basis points to 20 bps in the secondary market going out the door.

Also in the primary market on Monday, Royal Bank of Canada sold $1.75 billion of 2.3% five-year covered bonds.

Total System Services, Inc. priced $1.5 billion of senior notes in two tranches during the session.

ICICI Bank Ltd. was in the market with $700 million of 10-year senior notes in a Rule 144A/Regulation S-eligible offering.

Also during the session, Hyundai Capital America priced $1 billion of medium-term notes in two tranches.

Market participants expect high-grade bond issuance of about $25 billion to $30 billion for the week.

In other secondary trading, Fifth Third Bank’s $1.5 billion two-part offering of notes priced on Thursday remained tight earlier Monday.

The Markit CDX North American Investment Grade index ended the day 2 bps softer at a spread of 85 bps.

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