Morning Commentary: Thermo Fisher, O’Reilly, Priceline market notes; Thermo Fisher softens

By Cristal Cody

Tupelo, Miss., Aug. 10 – Primary action is expected to remain strong in the high-grade bond market on Thursday with several deals in the works.

Thermo Fisher Scientific Inc. is marketing two tranches of senior notes to help fund its $7.2 billion acquisition of Patheon NV.

O’Reilly Automotive, Inc. plans to tap the primary market with an offering of 10-year senior notes.

Intercontinental Exchange, Inc. intends to price a two-part senior notes deal.

Also, Priceline Group, Inc. is offering two tranches of senior notes.

In the secondary market, Thermo Fisher Scientific’s 2.95% senior notes due Sept. 19, 2026 (Baa2/BBB/BBB) were modestly softer over the morning at 98.28 from 98.33 on Wednesday, a source said.

The Waltham, Mass.-based science technology company sold $1.2 billion of the notes on Sept. 14, 2016 at 98.787 to yield 3.092% and a spread of Treasuries plus 140 basis points.

Priceline’s 3.6% notes due June 1, 2026 softened slightly in the secondary market on Thursday, according to a market source. The notes were quoted at 101.49 at the start of the day from where the notes went out at 101.85 in the previous session.

The Norwalk, Conn.-based online travel company sold $1 billion of the notes (Baa1/BBB+) on May 18, 2016 at 99.807 to yield 3.623%, or Treasuries plus 180 bps.

Overall secondary trading volume totaled $15.8 billion on Wednesday, compared to $17.04 billion on Tuesday and $14.32 billion on Monday, according to Trace.

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