Enterprise Products, Pennsylvania Electric price 10-year issues on slim investment-grade day

By Andrea Heisinger

Omaha, Aug. 27 - Monday was a slim day for new issues, with Enterprise Products Operating LLC and Pennsylvania Electric Co. both pricing notes.

Enterprise Products had $800 million in 10-year 6.3% notes that priced at a spread of Treasuries plus 170 basis points. The price was 99.953 with a yield of 6.306%.

Pennsylvania Electric priced $300 million in 10-year 6.05% senior unsecured notes at a spread of Treasuries plus 150 bps with a price of 99.703 and yield of 6.09%.

Price talk was in the 150 bps area, sources said.

The quiet start to the week followed the more than $18 billion in new issues last week.

"It's just a touch wider, with very little change," a market source said of spreads compared to Friday.

Volume was a little wider Monday, the source said.

General Mills, Inc.'s $700 million in notes were trading in the secondary market at about the same spread as when they priced Friday.

"Nothing's really changed," a secondary source said.

The notes priced at a spread of Treasuries plus 127 bps.

The next couple of days will bring more new issues, but then things will quiet down in advance of the holiday weekend, a market source said.

The source said they did not know of any deals for the rest of the week that had been officially announced.

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