Hewlett Packard prices $1.75 billion; UDR sells notes; JBIC prints; Alberta in pipeline

By Cristal Cody

Tupelo, Miss., July 14 – High-grade corporate and sovereign, supranational and agency supply included three deals in the primary market on Tuesday.

Hewlett Packard Enterprise Co. priced $1.75 billion of senior notes (Baa2/BBB/BBB+) in two tranches.

UDR, Inc. brought $400 million of 12-year guaranteed medium-term notes (Baa1/BBB+) on Tuesday.

In the SSA space, Japan International Cooperation Agency priced $500 million of 10-year guaranteed bonds (A+) tighter than guidance.

Coming up on Wednesday, SSA issuance is expected to continue with a dollar-denominated offering of 10-year global notes from the Province of Alberta (Aa2/AA).

Initial price talk is in the mid-swaps plus 74 basis points area.

Week to date, $7.25 billion of investment-grade corporate bonds and $500 million of SSA notes have priced.

Volume so far has been led by Mars Inc.’s $2.5 billion of guaranteed senior notes (A1/A) priced in four tranches on Monday.

About $15 billion to $20 billion of issuance is expected by market participants this week. Market focus is on bank and financial earnings reports due over the week, with Citigroup Inc., JPMorgan Chase & Co., and Wells Fargo & Co. releasing second quarter results on Tuesday.

Goldman Sachs releases its profit results on Wednesday, followed by Bank of America and Morgan Stanley on Thursday.

Mars notes firm

High-grade market tone was mixed over the session.

The Markit CDX North American Investment Grade 33 index eased about 1 bp to end at a spread of 74 bps.

The iShares iBoxx Investment Grade Corporate Bond ETF closed up 0.58% to 136.3 following a 0.26% decline in the prior session.

The Pimco Investment Grade Corporate Bond Index rose 0.61% to 115.75 after ending Monday down 0.24%.

In the secondary market, Mars’ new senior notes improved about 2 bps to 3 bps, a source said.

The company’s 0.875% notes due July 16, 2026 firmed about 3 bps.

Mars sold $500 million of the notes at a spread of 60 bps over Treasuries.

Initial price talk was in the Treasuries plus 95 bps area.

The company’s 2.45% notes due July 16, 2050 traded about 2 bps tighter.

Mars priced $400 million of the 30-year notes at a Treasuries plus 115 bps spread.

Initial price guidance was at the 140 bps over Treasuries area.

The notes are guaranteed by Wm. Wrigley Jr. Co. and New Uno Holdings Corp.

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