Morning Commentary: Apple, Eli Lilly, EnLink market notes; Apple weakens in secondary trading

By Cristal Cody

Tupelo, Miss., May 4 – Strong primary action in the investment-grade bond market is expected on Thursday with Apple Inc. in the deal pipeline with a six-tranche offering of notes.

In addition, Eli Lilly and Co. plans a three-part notes offering.

Also, EnLink Midstream Partners LP intends to price 30-year notes and Southern Gas Co. Capital Corp. is offering a tranche of senior notes.

Apple’s senior notes (Aa1/AA+) that priced in February softened in early secondary trading.

Secondary trading volume totaled $16.3 billion on Wednesday, compared to $18.23 billion on Tuesday and $11.95 billion on Monday, according to Trace.

Apple softens

Apple’s 3.5% notes due Feb. 9, 2027 traded early Thursday at 101.53, down from where the notes last traded on Wednesday at 102.24, according to a market source.

The notes went out on Wednesday 5 basis points tighter at 77 bps bid, a market source said.

The company sold $2.25 billion of the notes on Feb. 2 at par to yield a spread of Treasuries plus 88 bps.

Apple’s 4.25% notes due Feb. 9, 2047 softened to 102.40 over the morning from 102.99 on Wednesday afternoon.

The notes firmed 5 bps on Wednesday to 110 bps bid.

The $1 billion tranche of bonds were priced in the Feb. 2 offering at 99.798 to yield 4.262%, or Treasuries plus 115 bps.

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

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