Midday Commentary: Burlington Northern, RBC tapping market; Mattel, QVC bonds tighten in trading

By Andrea Heisinger

New York, March 5 - The steady stream of new bond offerings in the high-grade market continued on Tuesday with Burlington Northern Santa Fe, LLC and the Royal Bank of Canada among those announcing offerings.

Other corporate names in the primary include Markel Corp., McKesson Corp. and American Tower Corp., whose trade went overnight from Monday.

Avon Products, Inc. announced an offering that is not expected to price until the coming week.

Sources working on the day's sales said that price guidance and size for most would not be out until around noon ET.

Some of the crop of offerings from Monday was seen making gains in the secondary on Tuesday at midday, a trader said.

Trading itself was "reasonably strong from a spread perspective," the trader said.

They quoted the two new bonds from Mattel, Inc. as tightening 6 basis points to 10 bps from pricing.

The toy maker sold $500 million of paper split between 1.7% notes due 2018 priced at 95 bps over Treasuries and 3.15% bonds due 2023 at Treasuries plus 130 bps. Both notes were seen between 2 bps and 5 bps tighter at the close on Monday.

A $1.05 billion split-rated sale in two parts from QVC, Inc. was trading "about 10 [bps] better overall" at midday, the trader said.

The West Chester, Pa.-based retailer sold 4.375% 10-year notes at 250 bps over Treasuries and 5.95% 30-year bonds at a 285 bps spread.

© 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.