Amazon.com, Lear in bond deal pipeline; McCormick notes tighten; Duke Energy softens

By Cristal Cody

Tupelo, Miss., Aug. 11 – Investment-grade primary market activity stayed light on Friday following a heavy week of bond issuance.

Amazon.com, Inc. signaled plans to market a benchmark multi-tranche offering of senior notes in the week ahead.

Also, Lear Corp. is expected to price new senior notes after the company finished a two-day round of investor calls on Friday.

The company filed a prospectus with the Securities and Exchange Commission on Thursday for common stock, preferred stock, debt securities, warrants, subscription rights, stock purchase contracts or stock purchase units.

Issuance is expected to be steady over the coming week with about $25 billion of supply forecast, depending on market tone, a source said.

In the secondary market, new issues priced earlier in the week were mixed on Friday.

McCormick & Co., Inc.’s $2.5 billion of senior notes (Baa2/BBB/) sold in four tranches on Wednesday to help fund its acquisition of the condiments division of Reckitt Benckiser LLC traded about 1 basis point to 8 bps better than issuance.

Duke Energy Corp.’s $1.75 billion of senior notes (Baa1/BBB+/BBB+) priced in three tranches at the start of the week softened about 5 bps to 7 bps.

The Markit CDX North American Investment Grade index ended modestly tighter at a spread of 62 bps.

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