KLA-Tencor, BP Capital notes meet overwhelming demand; bond spreads flat; trading subdued

By Aleesia Forni and Cristal Cody

Virginia Beach, Oct. 30 – KLA-Tencor Corp., BP Capital Markets plc, Whirlpool Corp. and Toronto-Dominion Bank made their way to Thursday’s primary market, pricing more than $6 billion of new investment-grade paper.

The session’s largest new issue came from KLA-Tencor, which priced $2.5 billion of senior notes in five tranches.

Investors flocked to the company’s new deal, which amassed an overwhelming $12 billion order book.

The five tranches of notes sold around 10 basis points to 15 bps tighter than initial guidance.

BP Capital’s new $2 billion two-part issue also received solid demand with an order book that was more than six times oversubscribed.

In other primary happenings, Whirlpool priced a $650 million two-part offering of notes at the tight end of talk.

Toronto-Dominion Bank was also in the market with a two-part sale of senior notes on Thursday.

So far, this week has seen roughly $21 billion of new issuance, falling in line with what sources had predicted to be a $20 billion to $25 billion week.

Looking ahead, sources are not ruling out the chance of primary activity on Friday to close out October.

The typically quiet end of the week for the high-grade market has seen unusual amounts of activity in recent weeks following a volatile start to the month.

“I really would not be surprised,” a source said of the possibility of new issuance on Friday.

© 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.