Morning Commentary: High-grade bond deals on way; Oracle tightens; Molson Coors mostly flat

By Cristal Cody

Eureka Springs, Ark., June 30 – Primary activity in the investment-grade bond market is set to stay busy on Thursday in the last full session of the week ahead of the July 4 holiday weekend.

Lloyds Banking Group plc, Omega Healthcare Investors Inc. and Western Gas Partners LP plan note offerings.

New investment-grade bonds were mixed in secondary trading early Thursday.

Oracle Corp.’s $14 billion of senior notes (A1/AA-) that priced in five parts on Wednesday traded about 6 basis points to 20 bps tighter in the secondary market.

Molson Coors Brewing Co.’s senior notes (Baa3/BBB-) were mostly unchanged.

The Markit CDX North American Investment Grade index was unchanged to modestly softer early Thursday at a spread of 81 bps.

Secondary trading volume rose to $17,661,000,000 in the investment-grade bond market on Wednesday from $16,663,000,000 on Tuesday and $12,695,000,000 on Monday, according to Trace.

Oracle stronger

Oracle’s 1.9% notes due 2021 traded 10 bps better at 80 bps offered in secondary trading, a source said.

The company sold $4.25 billion of the notes on Wednesday at 90 bps over Treasuries.

Oracle’s $3 billion tranche of 2.65% notes due 2026, which priced at 120 bps over Treasuries, firmed to 114 bps offered in the secondary market.

The computer software and technology company is based in Redwood City, Calif.

Molson Coors unchanged

Molson Coors’ 3% notes due 2026 were unchanged at 150 bps bid in the secondary market, a source said.

The company sold $2 billion of the 10-year notes at a spread of 155 bps over Treasuries on Tuesday.

The brewing company is based in Denver.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.