John Deere, Cullen/Frost price; Southern Gas firms; Burlington Northern, McDonald’s soften

By Cristal Cody

Tupelo, Miss., March 10 – Two high-grade companies tapped the primary market on Friday, capping off a week of more than $45 billion of corporate supply.

John Deere Capital Corp. brought $1 billion of senior medium-term notes in three tranches to the market on Friday.

Cullen/Frost Bankers Inc. placed $100 million of 10-year subordinated notes.

Looking ahead, about $25 billion to $30 billion of deal volume is forecast with issuance expected to be front-loaded in the upcoming week, according to market sources.

The Markit CDX North American Investment Grade index closed the day slightly wider at a spread of 64 basis points.

New bonds priced over the week were mixed as market tone shifted with energy names trading mostly tighter in the secondary market, sources said.

Southern Natural Gas’ 4.8% senior notes due March 15, 2047 tightened about 4 bps.

Burlington Northern Santa Fe, LLC’s $1.25 billion two-tranche offering of senior debentures (A3/A/) priced on Monday traded about 1 bp to 5 bps wider than issuance.

UnitedHealth Group Inc.’s $1.35 billion of senior notes (A3/A+/A) sold in two parts traded flat to about 2 ½ bps wider than where the notes priced on Wednesday.

McDonald’s Corp.’s $2 billion of senior notes (Baa1/BBB+/BBB) priced in three parts on Monday softened about 4 bps to 7 bps in the secondary market.

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