Primary sees Anadarko Petroleum price upsized deal; Fannie Mae passes; spreads tighten

By Cristal Cody and Aleesia Forni

Virginia Beach, July 1 – Anadarko Petroleum Corp. was the sole issuer in Tuesday’s subdued primary market.

The company came to market with an upsized two-part $1.25 billion offering of senior notes, with both tranches of the sale pricing in line with talk.

The lone new issue saw strong demand on Tuesday, according to a market source, with the orderbook around six times oversubscribed.

In other market action, Fannie Mae announced that it would not issue Benchmark Notes on its announcement date on Tuesday.

This week’s new issuance has already topped sources’ predictions of around $15 billion of issuance, due largely to Monday’s $10 billion megadeal from Oracle Corp.

Anadarko’s trade brings the Independence Day holiday-shortened week’s total supply to $16 billion.

This week has wrapped up a solid month of issuance for June, with $108.29 billion of new paper priced during the month, according to Prospect News data.

This figure is up from May’s $101.04 billion and blew away last June’s total of $38.25 billion.

The market is gearing up for another busy month following the holiday, with around $70 billion to $80 billion expected for July.

Investment-grade bond spreads tightened on Tuesday, according to market sources.

The Markit CDX North American Investment Grade series 22 index firmed 2 basis points to a spread of 57 bps.

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