Yankees dominate session; Societe Generale sells perpetuals; Oracle mixed; Apple widens

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 22 – The investment-grade primary market saw a dramatic slowdown on Tuesday, with many issuers staying on the sidelines in the face of a steep drop in stocks and weaker market conditions.

A trio of Yankee financials brought $2.65 billion to market during the session following the blockbuster $17.35 billion day on Monday.

Societe Generale SA was the highlight of the quiet trading day, pricing $1.25 billion of perpetual tier 1 notes tight of initial price thoughts.

Meanwhile, Nordic Investment Bank sold $1 billion of five-year notes at the tight end of talk, and International Finance Corp. priced an upsized tap of its existing floating-rate bonds.

BHP Billiton plc and International Bank for Reconstruction and Development (World Bank) were also in the primary announcing new deal plans.

The Markit CDX North American Investment Grade 25 index ended the day 2 basis points wider at a spread of 83 bps.

AT&T Inc.’s bonds (/BBB+/A-) headed out mostly unchanged on Tuesday.

Oracle Corp.’s senior notes (A1/AA-/A+) were mixed in the secondary market.

Apple Inc.’s bonds (Aa1/AA+) traded 3 bps wider.

Societe Generale entered Tuesday’s primary with a $1.25 billion issue of perpetual tier 1 notes at par to yield 8%, a market source said.

The notes (Ba2/BB+) sold at the tight end of guidance set in the 8.125% area, having firmed from initial price thoughts in the range of 8.125% to 8.25%.

The notes will be non-callable for 10 years.

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