Strong high-grade deal action forecast; new issues mixed; Apple widens; Oracle tightens

By Cristal Cody

Tupelo, Miss., Nov. 10 – The investment-grade primary market stayed quiet on Friday following a hefty week of supply.

Deal action is expected to be strong in the week ahead with about $25 billion to $30 billion of volume forecast, a source said.

Some issuers are eying the market.

Citadel LP plans to hold a two-day round of investor calls starting on Monday, a source said.

J.P. Morgan Securities LLC and UBS Securities LLC are the arrangers.

S&P Global Ratings announced on Friday that it assigned a BBB issuer credit rating on Citadel, a Chicago-based hedge fund management firm.

Bonds were mixed in secondary trading on Friday.

Apple Inc.’s $7 billion of notes (Aa1/AA+) priced in six tranches on Monday widened about 1 basis point to 12 bps in the secondary market.

Oracle Corp.’s $10 billion of senior notes (A1/AA-/A+) priced in five tranches on Tuesday tightened about 7 bps to 11 bps in secondary trading.

The Markit CDX North American Investment Grade 29 index ended slightly wider at a spread of 56 bps.

Apple eases

Apple’s 2% notes due Nov. 13, 2020 traded on Friday at 35 bps bid, 33 bps offered, according to a market source.

The $1 billion priced on Monday at a 30 bps spread over Treasuries.

Apple’s 3% notes due Nov. 13, 2027 eased to 77 bps bid, 74 bps offered in the secondary market.

The company sold $1.5 billion of the 10-year bonds in Monday’s offering at a 72 bps spread over Treasuries.

The computer, mobile communication and media devices company is based in Cupertino, Calif.

Oracle firms

Oracle’s 2.625% notes due Feb. 15, 2023 tightened to 58 bps bid, 56 bps offered in secondary trading, a market source said.

The company sold $1.25 billion of the notes on Tuesday at a spread of Treasuries plus 65 bps.

Oracle’s 3.25% notes due Nov. 15, 2027 traded in to 84 bps bid, 82 bps offered.

The $2.75 billion 10-year tranche priced with a spread of Treasuries plus 95 bps.

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

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