Ten deals hit high-grade market following holiday; spreads flat; Eastman Chemical mixed

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 12 – The investment-grade bond market came alive on Wednesday following the Veterans Day holiday, with 10 deals bringing around $12.45 billion of supply.

Gilead Sciences Inc. sold $4 billion of senior notes, while Phillips 66 came to market with $2.5 billion of senior notes.

The primary also saw Canadian Natural Resources Ltd. sell $1.2 billion of senior notes, while Sunoco Logistics Partners Operations LP priced $1 billion of notes and Volkswagen Group of America Finance, LLC priced $2 billion of senior notes.

Ally Financial Inc. priced $800 million of junk-rated bonds, though the deal came off of the investment-grade desk.

The primary also hosted Duke Realty LP, Tanger Properties LP, Fulton Financial Corp. and AvalonBay Communities, Inc.

Meanwhile, Methanex Corp. launched a $600 million offering of senior notes that are expected to price on Thursday, and KfW set price talk for a planned offering of 10-year bonds.

So far this week has seen more than $23 billion of new issuance, closing in on sources’ expectations of $25 billion to $30 billion.

Investment-grade bond spreads were mostly unchanged over the day, according to market sources.

The Markit CDX North American Investment Grade series 23 index was flat at a spread of 64 bps.

Eastman Chemical Co.’s senior notes (Baa2/BBB/BBB) priced on Monday were mixed in secondary trading, according to a market source.

© 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.