Daimler, Arrow price; Kinder Morgan, Harley, ComEd upsize; bank, financial paper soft

By Aleesia Forni and Cristal Cody

Virginia Beach, Feb. 23 – A hodgepodge of investment-grade issuers made their way to the primary market on Monday, pricing more than $6 billion of new bonds.

Daimler Finance North America LLC sold the day’s largest deal, selling $3 billion of notes in four parts.

The session also saw Arrow Electronics, Inc. price a $700 million offering in two maturities.

Kinder Morgan Inc., Harley-Davidson Financial Services Inc., Commonwealth Edison Co. and Coach Inc. each came to market with upsized new issues.

Kinder Morgan priced its $800 million of 31-year bonds around 17 basis points tight of the mid-point of initial guidance.

Commonwealth Edison was swamped with orders for its new $400 million offering of mortgage bonds, attracting a book that was more than six times oversubscribed.

Harley-Davidson Financial and Coach were each in the market with $600 million offerings, both priced at the tight end of talk.

Investment-grade corporate bonds traded flat to modestly softer on Monday, according to market sources.

The Markit CDX North American Investment Grade index was unchanged at a spread of 63 bps.

Bank and financial paper was mostly weaker in the secondary market.

JPMorgan Chase & Co.’s 3.125% notes due 2025 were quoted 2 bps softer in secondary trading.

Goldman Sachs Group Inc.’s 3.5% notes due 2025 eased 3 bps.

Bank of America Corp.’s 4% notes due 2025 traded 5 bps weaker going out.

Wells Fargo & Co.’s 2.15% notes due 2020 widened more than 5 bps but remain tighter than issuance.

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