Issuers stand down on E.U. summit, weak market tone; Wednesday's issues tighten in secondary

By Aleesia Forni and Andrea Heisinger

New York, June 28 - Investment-grade issuers stood down as they awaited a Supreme Court ruling on President Obama's health-care reform plan Thursday morning.

Leaders from the European Union were meeting as well, which sent the Dow Jones industrial average down at the open.

"It was a pretty weak market today," a source said of the bond market.

The E.U. summit contributed to that, the source said, as did an auction of Italian bonds and the release of German unemployment numbers that were unfavorable.

Companies and syndicate desks are already starting to empty ahead of the Fourth of July holiday in the coming week.

"A lot of companies are holding off until after the holiday, or they have [earnings] blackout," a syndicate source said.

The coming week is also expected to be light on deals as people take Thursday and Friday off after the holiday and leave early Tuesday.

"Monday is really the only viable day next week," the syndicate source said.

General Electric Capital Corp.'s recent issuance was among the day's most actively traded deals, tightening 3 basis points in the secondary market, a source said.

Meanwhile, all three tranches of Tuesday's $2.5 billion issuance from ADT Corp. firmed in secondary trading.

General Electric firms

General Electric Capital's $1.2 billion tranche of 1.625% three-year notes traded 3 bps tighter in the secondary market on Thursday at 122 bps bid, 123 bps offered.

The notes priced at a spread of Treasuries plus 125 bps on Wednesday.

The financial products and services provider is based in Norwalk, Conn.

ADT tightens

In other trading, ADT's $2.5 billion of senior notes in three maturities tightened on Thursday.

The $750 million of 2.25% five-year notes traded at 143 bps bid after selling at a spread of Treasuries plus 155 bps on Wednesday.

A $1 billion tranche of 3.5% 10-year notes traded at 186 bps bid, 184 bps offered, 9 bps tighter than the original spread.

The $750 million tranche of 4.875% 30-year bonds was last seen 4 bps tighter at 226 bps bid, 224 bps offered.

The tranche priced at a spread of Treasuries plus 230 bps. The bonds were sold at the tight end of talk in the 230 bps area.

ADT is a security and alarm system company and a unit of Tyco International Ltd., based in Schaffhausen, Switzerland.

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