Sysco prices to overwhelming demand; ING Bank, Nordic Investment Bank price; spreads ease

By Aleesia Forni

Virginia Beach, Sept. 23 – Sysco Corp. came to Tuesday’s high-grade bond primary market with a $5 billion offering of senior notes, meeting overwhelming demand from investors.

The new deal was swamped with orders, a source noted, attracting a book that was more than four times oversubscribed.

All six tranches of the deal sold at the tight end of price talk, which had firmed around 10 basis points to 15 bps from initial price talk.

“Very strong demand,” a source said of Sysco’s new issue.

Sysco’s new issue comes on the heels of another six-part offering priced by Roche Holding AG on Monday. The Swiss drugmaker sold the $5.75 billion of bonds to fund the acquisition of InterMune Inc.

Sysco also accessed the market to secure acquisition financing for its planned merger with USF Holding Corp., the parent company of US Foods, Inc.

In other primary happenings on Tuesday, ING Bank NV priced $1.5 billion of notes due 2019 in fixed- and floating-rate tranches, a market source said.

The session also saw Kommuninvest i Sverige AB issue $1 billion of five-year notes and Nordic Investment Bank price a $500 million offering of global notes due 2021.

Meanwhile, Landwirtschaftliche Rentenbank came out with price talk on Tuesday for a planned seven-year notes offering.

So far, this week has seen $18.51 billion of new issuance, already closing in on what was expected to be a $20 billion to $25 billion week.

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