Primary slows; Patterson-UTI Energy, IADB price notes; KfW, Municipality Finance on deck

By Cristal Cody

Tupelo, Miss., Jan. 10 – Investment-grade primary action slowed on Wednesday as investors took in the news that China may halt or slow its purchases of U.S. Treasuries.

Patterson-UTI Energy, Inc. was the lone reported corporate issuer with an upsized $525 million offering of 10-year senior notes.

Also, Inter-American Development Bank sold $3.75 billion of five-year global notes on Wednesday.

In the Canadian high-grade primary market, Choice Properties Real Estate Investment Trust priced C$650 million of senior debentures in two tranches.

Also on Wednesday, the European Investment Bank priced a Canadian dollar-denominated offering of five-year global notes, a source said. Final pricing details were not immediately available.

Coming up on Thursday, U.S. deal action is expected to include offerings from KfW and Municipality Finance plc.

KfW (Aaa/AAA/AAA) plans to price a benchmark sized offering of global notes due Dec. 29, 2022, according to a market source.

Municipality Finance (Aa1/AA+/) plans to price $500 million of three-year floating-rate notes in a Rule 144A and Regulation S offering, according to a market source.

About $25 billion to $30 billion of supply is expected by market sources for the week.

The Markit CDX North American Investment Grade 29 index closed the day modestly tighter at a spread of 46 basis points.

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