Amazon.com, American Tower, Ralph Lauren, MetLife Funding, John Deere price; EIB on tap

By Cristal Cody

Tupelo, Miss., June 1 – Amazon.com, Inc. (A2/AA-/A+) came by the high-grade primary market on Monday with $10 billion of registered senior notes priced in six tranches.

The deal led volume over the session that saw more than 10 issuers in the market.

American Tower Corp. priced $2 billion of senior notes (Baa3/BBB-/BBB+) in three tranches.

Ralph Lauren Corp. tapped the primary market with $1.25 billion of senior notes (A3/A-/) in two tranches.

Metropolitan Life Global Funding I sold $1 billion of three-year notes (Aa3/AA-/) during the session.

John Deere Capital Corp. priced $900 million of senior medium-term notes (A2/A/A) in two parts.

Ally Financial Inc. brought $800 million of three-year senior notes (/BBB-/BBB-) to the market.

WestRock Co. subsidiary WRKCo Inc. priced an upsized $600 million of guaranteed senior notes due Jun 15, 2033 (Baa2/BBB/).

Agilent Technologies, Inc. sold $500 million of 10-year senior notes (Baa2/BBB+/BBB+).

Southwest Gas Corp. placed $450 million of 10-year senior notes (A3/A-/A) on Monday.

PECO Energy Co. priced an upsized $350 million of 30-year first and refunding mortgage bonds (Aa3/A/A+).

Also, Paccar Financial Corp. (A1/A+/) priced $300 million of three-year medium-term notes during the session.

About $30 billion to as much as $50 billion of volume is expected in the high-grade primary market this week, while market participants forecast June to post about $100 billion to $125 billion of total issuance for the month.

June marks the beginning of the summer slowdown in the primary market with a five-year average run rate of $97 billion, according to a BofA Securities, Inc. research note released on Monday.

“Since companies have built a large enough cash war chest to weather the current recession, we expect the revolver term-out trade to continue for another month or so, and then volumes should decline precipitously in the second half of the year,” BofA said.

Coming up on Tuesday, the European Investment Bank (Aaa/AAA/AAA) is expected to price a dollar-denominated offering of global notes due Sept. 15, 2023, a source said.

Initial price talk is in the mid-swaps plus 12 basis points area.

The Markit CDX North American Investment Grade 33 index closed the day about 1 bp softer from Friday at a spread of 78.5 bps.

© 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.