Investment-grade primary market active; Schwab, J.M. Smucker, Public Service price notes

By Cristal Cody

Tupelo, Miss., Dec. 4 – Several issuers tapped the high-grade primary market on Monday with new bond offerings.

Charles Schwab Corp. came with $1.5 billion of senior notes in two tranches.

The company priced $800 million of 2.65% five-year notes at 99.84 to yield 2.683%, or a spread of Treasuries plus 53 bps, and $700 million of 3.2% notes due 2028 priced at 99.85 to yield 3.217%, or a Treasuries plus 83 bps spread.

J.M. Smucker Co. brought $800 million of fixed-rate notes in two parts.

The company priced $300 million of 2.2% two-year notes at 99.922 to yield 2.24% and a Treasuries plus 43 bps spread and $500 million of 3.375% 10-year notes at 99.966 to yield 3.379%, or Treasuries plus 100 bps.

Public Service Electric & Gas Co. sold $350 million of 30-year secured medium-term notes.

Also, Vornado Realty Trust priced $300 million of split-rated series M cumulative redeemable perpetual preferred stock.

In other bond offerings, Westpac Banking Corp., Canada’s province of New Brunswick and Baker Hughes, a GE Co., LLC were marketing U.S. dollar-denominated notes.

About $30 billion of deal volume is expected by market participants for the week.

The Markit CDX North American Investment Grade 29 index tightened about 1 basis point on Monday to head out at a spread of 52 bps.

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