Manitoba, Coca-Cola push week’s tally to $31 billion; Time Warner, Coca-Cola active, flat

By Aleesia Forni and Cristal Cody

New York, Nov. 20 – Coca-Cola Bottling Co. Consolidated and Province of Manitoba closed out a solid week for the high-grade market by pricing new deals on Friday.

Continuing the week’s trend, Coca-Cola Bottling’s new $350 million offering was well-received, a market source said, with more than $1.5 billion of orders for the upsized offering.

The day’s two deal’s push the week’s total to more than $31 billion, topping earlier expectations of a $25 billion to $30 billion week.

A dramatic slowdown in primary activity is expected for the week ahead prior to the Thanksgiving holiday.

“Thinking around $5 billion,” one market source said of next week’s supply. “Monday should see some activity.”

Meanwhile, corporate investment-grade bond funds saw $94.5 million of inflows for the week ended Nov. 18, according to Lipper U.S. Funds Flows.

The number is up from last week’s $82.6 million of inflows and brings the year-to-date total to roughly $14.4 billion.

High-grade corporate spreads remain mostly weak on the year, according to a Barclays Bank plc note on Friday.

“Despite significant tightening over the month, U.S. investment grade corporate spreads, at 155 [bps], are nearly 35 [bps] wide of year-to-date tights,” the Barclays note said.

The Markit CDX North American Investment Grade 25 index ended the day mostly unchanged to modestly tighter at a spread of 84 bps.

In the secondary market, Time Warner Inc.’s 4.85% debentures due 2045 reopened on Tuesday were unchanged.

Coca-Cola’s existing 2.875% senior notes due 2025 traded 1 bp tighter.

PepsiCo Inc.’s 4.45% senior notes due 2046 eased 1 bp in secondary trading on Friday afternoon.

Manitoba debentures

The Province of Manitoba priced a $1 billion offering of 2.05% five-year global debentures, series GM, on Friday at mid-swaps plus 53 bps, according to a market source and an FWP filed with the Securities and Exchange Commission.

The notes (Aa2/AA) sold at the tight end of talk set in the mid-swaps plus 55 bps area.

Pricing was at 99.816 to yield 2.089%. The offering sold with a spread of 43.3 bps over Treasuries.

The bookrunners are CIBC Capital Markets, RBC Capital Markets LLC, National Bank of Canada Financial Markets and Scotia Capital (USA) Inc.

Proceeds will be used for general government programs and for advances to the Manitoba Hydro-Electric Board.

Coca-Cola Bottling upsizes

Coca-Cola Bottling Co. Consolidated sold an upsized $350 million issue of 3.8% senior notes (Baa2/BBB) due Nov. 25, 2025 on Friday with a spread of 155 bps over Treasuries, according to a market source and an FWP filed with the SEC.

The notes sold at the tightest side of price guidance and around 20 bps inside initial thoughts.

Pricing was at 99.975 to yield 3.803%.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

Proceeds will be used to repay debt. Remaining proceeds will be directed to general corporate purposes.

Coca-Cola Bottling is a Charlotte, N.C., producer, marketer and distributor of non-alcoholic beverages.

Time Warner unchanged

Time Warner’s 4.85% debentures due 2045 traded flat at 200 bps bid in the secondary market, a source said.

Time Warner sold a $300 million tap of the debentures (Baa2/BBB/BBB+) on Tuesday at a spread of Treasuries plus 200 bps. The original $600 million issue priced on May 28 at Treasuries plus 195 bps.

The media company is based in New York.

Coca-Cola firms

Coca-Cola’s existing 2.875% notes due 2025 traded 1 bp better over the day to head out at 87 bps bid, a market source said.

The company sold $1.75 billion of the 10-year notes (Aa3/AA/A+) on Oct. 22 at a spread of Treasuries plus 87 bps.

The beverage company is based in Atlanta.

PepsiCo eases

PepsiCo’s 4.45% notes due 2046 eased 1 bp to 132 bps bid in secondary trading on Friday afternoon, a source said.

The company sold $750 million of the bonds (A1/A) on Oct. 8 at Treasuries plus 150 bps.

PepsiCo is a Purchase, N.Y.-based global food and beverage company.

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