High-grade issuers pour in; Altria, Nvidia, United Airlines price; credit spreads widen

By Cristal Cody

Eureka Springs, Ark., Sept. 13 – The high-grade primary market roared to life on Tuesday with more than $20 billion of bonds priced during the session, according to market sources.

Nvidia Corp. brought a $2 billion two-part offering of senior notes.

Altria Group Inc. sold $2 billion of guaranteed senior notes in two tranches.

United Airlines, Inc. sold $919,593,000 of pass-through certificates in two parts.

Duke Energy Progress Inc. priced $450 million of 30-year first mortgage bonds.

Liberty Property LP sold $400 million of 10-year senior notes.

Cisco Systems, Inc. sold about $6 billion of senior notes in five tranches on Tuesday. Final pricing details were not available by press time.

Washington Gas Light Co., World Bank and Kommunalbanken also planned to price.

In the Canadian investment-grade primary market, Sun Life Financial, Inc. sold C$1 billion of 3.05% 12-year debentures, Brookfield Asset Management Inc. priced C$500 million of 3.8% medium-term notes due March 16, 2027 and Industrial Alliance Insurance and Financial Services Inc. priced C$400 million of 3.3% 12-year debentures.

The Markit CDX North American Investment Grade index widened 4 basis points over the day to a spread of 77 bps.

In the secondary market earlier on Tuesday, Cox Communications Inc.’s 3.35% senior notes due 2026 traded about 1 bp tighter and about 5 bps better than where the bonds priced on Thursday.

Shell International Finance BV’s 2.5% guaranteed senior notes due 2026 priced in the previous week improved 2 bps in secondary trading.

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