Morning Commentary: Abbott Labs preps six-part deal; HollyFrontier tightens; Westpac Banking flat

By Cristal Cody

Eureka Springs, Ark., Nov. 17 – The high-grade bond market geared up on Thursday with a six-tranche notes offering from Abbott Laboratories in the works.

Investment-grade bonds were mixed in secondary trading.

HollyFrontier Corp.’s 5.875% senior notes due April 1, 2026 that reopened on Wednesday tightened about 10 basis points in the secondary market.

Westpac Banking Corp.’s 4.322% fixed-to-floating rate subordinated notes due Nov. 23, 2031 that priced on Tuesday were flat.

On Wednesday, $19.18 billion of high-grade issues traded, compared to $20.28 billion on Tuesday and $18.23 billion on Monday, according to Trace.

The three-month Libor yield was stable at 91 bps over the morning.

HollyFrontier firms

HollyFrontier’s 5.875% senior notes due 2026 firmed to 352 bps offered in the secondary market, a source said.

The company priced a $750 million add-on to the issue on Wednesday at a spread of 362.5 bps over Treasuries.

HollyFrontier originally sold the notes on March 15, 2016 in a $250 million offering at Treasuries plus 400 bps.

The petroleum refiner is based in Dallas.

Westpac Banking flat

Westpac Banking’s 4.322% fixed-to-floating rate subordinated notes due 2031 were unchanged at 204 bps offered, according to a market source.

The company sold $1.5 billion of the notes on Tuesday at a spread of 210 bps over Treasuries.

The Australian bank and financial services provider is based in Sydney.

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