KfW prices $4 billion; National Rural Utilities taps primary; Whole Foods notes ease

By Cristal Cody

Tupelo, Miss., Aug. 23 – KfW led pricing action in the high-grade market on Wednesday with a $4 billion offering of two-year global senior notes.

Also on Wednesday, National Rural Utilities Cooperative Finance Corp. tapped the primary market with a $350 million offering of five-year senior medium-term notes.

Development Bank of Japan was expected to price $1.8 billion of five- and 10-year notes with the five-year tranche set to price at mid-swaps plus 42 basis points and the 10-year tranche to print at mid-swaps plus 59 bps.

Deal volume remains thin and is expected to stay light until after the Labor Day holiday.

The Markit CDX North American Investment Grade index eased about 1 bp to a spread of 61 bps during the session.

In the secondary market, Whole Foods Market Inc.’s 5.2% notes due Dec. 3, 2025 (Baa3/BBB-/) headed out about 1 bp softer at 77 bps bid following the company clearing two hurdles with its merger with Amazon.com, Inc., a source said.

Amazon.com announced in June it plans to purchase the organic and natural foods grocer for $13.7 billion in cash. The company priced $16 billion of bonds in seven tranches in the previous week to finance the acquisition. On Wednesday, the Federal Trade Commission said in a statement it looked at whether the deal would “substantially” lessen competition and has elected to let the acquisition continue.

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