FedEx, National Rural Utilities issue bonds; Kraft Heinz, Burlington Northern firm

By Aleesia Forni and Cristal Cody

Virginia Beach, Oct. 20 – FedEx Corp. and National Rural Utilities Cooperative Finance Corp. joined a trio of lenders bringing new deals to the investment-grade primary, as more weak data out of China weighed on the market.

China reported on Tuesday that its economy grew by 6.9% during the third quarter compared to the previous year, falling below the targeted 7% and making for a “sluggish” day in the high-grade space, one market source said.

In the primary, FedEx garnered around $3.5 billion of orders for its new $1.25 billion issue, pricing the deal around 25 basis points tight of initial talk.

National Rural Utilities was the session’s only other corporate deal, pricing $750 million of collateral trust bonds in two parts.

Elsewhere on Tuesday, KfW sold a $4 billion three-year global note at the tight end of talk, while Inter-American Development Bank priced $500 million of floaters and Bank Nederlandse Gemeenten NV priced a $1.75 billion three-year note.

Investment-grade bonds were mixed in secondary trading over the session.

Kraft Heinz Co.’s 3.95% notes due 2025 (Baa3/BBB-/) traded 4 bps tighter on Tuesday.

Burlington Northern Santa Fe LLC’s debentures (A3/BBB+) tightened 2 bps to 3 bps in the secondary market.

Duke Energy Progress Inc.’s first mortgage bonds (Aa2/A/A+) were mixed, with the short end firmer on the day.

The Markit CDX North American Investment Grade 25 index ended 1 bp weaker at a spread of 81 bps.

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