Oneok sells $1.25 billion; primary thin; Finnvera to offer notes; market eyes Walmart

By Cristal Cody

Tupelo, Miss., June 19 – Market volatility over trade war fears kept high-grade deal action thin over Tuesday’s session and credit spreads widened.

Oneok Inc. sold $1.25 billion of guaranteed fixed-rate senior notes in two tranches as the sole reported issuer.

While Oneok priced, several issuers stood down during the session and postponed bond deals, a source said.

The Markit CDX North American Investment Grade 30 index softened about 2 basis points to close at a spread of 63 bps.

Coming up on Wednesday, Finnvera plc plans to bring a benchmark-sized offering of five-year notes to the primary market.

In the meantime, a Walmart Inc. deal is expected in the immediate horizon, a source said. The company could price as much as $10 billion of bonds to finance its approximate $16 billion acquisition of India e-commerce company Flipkart Online Services pvt, according to the market source.

Walmart held fixed-income investor calls on Monday. Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the arrangers.

Monday’s session included Bayer AG’s $15 billion eight-part issuance of senior notes and Duke Energy Florida, LLC’s $1 billion two-tranche sale of first mortgage bonds.

About $35 billion to as much as $50 billion of volume is forecast for the mid-June week, which typically has light volume, according to market sources.

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