L3 Technologies, SoCal Edison, Dominion Energy price bonds; credit spreads tighten

By Cristal Cody

Tupelo, Miss., May 30 – The high-grade bond market rebounded on Wednesday with deals priced on the tight side of initial talk and improved credit spreads.

L3 Technologies, Inc. brought $1.8 billion of senior notes in two tranches.

Southern California Edison Co. priced $650 million of first and refunding mortgage bonds in new and reopened issues.

Dominion Energy, Inc. sold $300 million of 10-year senior notes.

MetLife Inc. also was selling an upsized $700 million of $25-par preferred shares that launched with a 5.625% dividend, a source said.

The Markit CDX North American Investment Grade 30 index tightened about 2.5 basis points to a spread of 65 bps after widening about 6 bps in the previous session.

The primary market was quiet on Tuesday in a risk-off trade after the markets were closed Monday for the Memorial Day holiday. Syndicate sources forecast about $20 billion of volume for the week.

In the secondary market, Barclays plc’s paper was mixed, but the company’s paper has widened since Friday, a source said.

Barclays’ 4.972% fixed-to-floating rate notes due May 16, 2029 firmed about 3 bps on the day to 225 bps bid.

The notes were quoted on Friday in the 207 bps area.

Barclays (A2/A/A) sold $1.75 billion of the 11-year notes on May 9 at Treasuries plus 197 bps.

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