eBay sees demand, prices day’s lone new issue; spreads firm; Oracle improves

By Aleesia Forni and Cristal Cody

Virginia Beach, July 23 – eBay Inc. came to Wednesday’s investment-grade primary market, pricing the day’s only new bond offering.

The global commerce and payments platform sold $3.5 billion of senior notes in five tranches due 2017, 2019, 2021 and 2024.

The lone deal was met with solid demand from investors, seeing an orderbook that was nearly three times oversubscribed.

The fixed-rate tranches of the offering sold around 15 basis points tighter compared to initial price talk.

In other primary news, Fannie Mae announced plans to price a five-year offering of Benchmark Notes.

eBay’s new deal brings the week’s total supply to $12 billion, just shy of what sources had predicted to be around a $15 billion week.

Activity in the high-grade primary market is expected to remain measured going forward.

“Not expecting much for the rest of the week,” a source said.

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

The Markit CDX North American Investment Grade series 22 index firmed 1 bp to a spread of 58 bps.

In the secondary market, Oracle Corp.’s 4.3% senior notes due 2034 traded better over the day, a source said.

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