Export Development Canada, Morgan Stanley print deals; Walgreens firms; Apple, AT&T mixed

By Cristal Cody

Tupelo, Miss., Jan. 26 – Primary action stayed fairly mild on Tuesday as the Federal Reserve kicked off its two-day policy meeting.

Export Development Canada sold $1 billion of 1.25% bonds due Feb. 4, 2019 at a spread of 23.9 basis points over Treasuries on Tuesday.

Morgan Stanley brought $400 million of 4.55% 20-year global medium-term notes at par.

Several financial deals are expected to price in the near term, according to a market source on Tuesday.

The Markit CDX North American Investment Grade 25 index improved 2 bps to close the day at a spread of 104 bps.

In the secondary market, Walgreens Boots Alliance Inc.’s 3.8% senior notes due 2024 traded 5 bps tighter.

Apple Inc.’s bonds (Aa1/AA+/) were mixed after the company beat analyst expectations for first-quarter profit but missed revenue forecasts.

AT&T Inc.’s notes (/BBB+/A-) were flat to modestly softer after the company reported on Tuesday fourth-quarter revenue gains.

Export Development Canada

Export Development Canada sold $1 billion of 1.25% dollar-denominated bonds due Feb. 4, 2019 at 99.80 to yield 1.318%, according to an FWP filing with the Securities and Exchange Commission.

The bonds priced with a spread of 23.9 bps over Treasuries.

Barclays, HSBC Bank plc, RBC Capital Markets, LLC and TD Securities (USA) LLC were the lead managers.

Export Development Canada is an Ottawa-based government-backed agency for exporters.

Morgan Stanley’s $400 million

Morgan Stanley sold $400 million of 4.55% 20-year global medium-term notes at par on Tuesday, according to a FWP filing with the SEC.

The series H fixed-rate senior registered notes are due Feb. 19, 2036.

MasterLink Securities Corp., E. Sun Commercial Bank, Ltd. and Yuanta Securities Co., Ltd. were the bookrunners.

Morgan Stanley is a financial services company based in New York City.

Walgreens tightens

Walgreens Boots Alliance’s 3.8% notes due 2024 firmed 5 bps over the day to 211 bps bid, according to a market source.

The company sold $2 billion of the notes (Baa2/BBB/) on Nov. 6, 2014 at Treasuries plus 145 bps.

Walgreens Boots Alliance is a subsidiary of Deerfield, Ill.-based drugstore operator Walgreens Co., which plans to acquire Rite Aid Corp.

Apple mixed

Apple’s 3.2% notes due 2025 widened to 107 bps bid from the 99 bps bid area, a market source said.

Apple sold $2 billion of the notes on May 6, 2015 at a spread of Treasuries plus 100 bps.

The company’s 4.375% notes due 2045 came in 17 bps to 145 bps bid during the session.

Apple sold $2 billion of the bonds in the May 6, 2015 offering at 140 bps over Treasuries.

The computer and mobile communications device company is based in Cupertino, Calif.

AT&T eases

AT&T’s 3.4% notes due 2025 eased 1 bp to 194 bps bid on Tuesday, a market source said.

The company sold $5 billion of the notes on April 23, 2015 at 150 bps plus Treasuries.

The telecommunications company is based in Dallas.

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