Issuance rush continues despite signs of fatigue; SoCal Gas firms; Kinder Morgan widens

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 8 – Kinder Morgan Energy Partners LP, Brandywine Operating Partnership, LP, Paccar Financial Corp. and Starwood Hotels & Resorts Worldwide Inc. were among the issuers bringing new deals to the primary during another busy session for the high-grade market.

Kinder Morgan came to market with an upsized $1.2 billion of senior notes in two tranches, while Starwood Hotels sold an upsized $650 million two-part issue of senior notes.

In other primary happenings, Paccar Financial sold a $300 million offering of notes.

Following last week’s more than $56 billion of new issuance, the market was “certainly showing some signs of fatigue” to begin the week, a market source said.

The session also saw new deals price from Southern California Gas Co., Credit Suisse AG, PECO Energy Co. and Valmont Industries Inc.

France’s BPCE SA was also in the market with a subordinated note offering, though details of the sale were unavailable at press time.

The primary also saw National Penn Bancshares Inc. join the forward calendar, announcing plans to bring to market a $100 million offering of 10-year notes.

Southern California Gas’ 3.15% mortgage bonds due 2024 headed out 5 bps better in the secondary market as the session closed, a trader said.

Kinder Morgan’s two tranches of bonds widened 3 bps in aftermarket trading, according to a trader.

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