BP sells four tranches; CMS, Freddie Mac price; Canada primary quiet; Duke Energy softens

By Cristal Cody

Tupelo, Miss., Feb. 8 – U.S. high-grade bond deal action remained steady on Wednesday with four new reported offerings.

BP Capital Markets plc tapped the primary market with a $2.85 billion four-part sale of notes.

CMS Energy Corp. placed $350 million of long 10-year senior notes.

Bank Nederlandse Gemeenten NV came with $2.25 billion of two-year dollar notes.

Freddie Mac reopened its 1.5% three-year reference notes in a $500 million add-on.

In other activity, Citigroup, Inc. released additional details of its previously reported $750 million reopening of 30-year subordinated notes.

Also, Parker-Hannifin Corp. announced plans to price up to $2.5 billion of senior notes in private transactions to partially finance its acquisition of Clarcor Inc.

The Canadian investment-grade corporate bond market has been quiet since a Jan. 31 C$1 billion sale of seven-year notes from Morgan Stanley.

“January was a good month with probably C$8.5 billion in supply, but it has not continued into February,” a syndicate source said.

The Markit CDX North American Investment Grade index closed about 1 basis point weaker at a spread of 67 bps on Wednesday.

Duke Energy Corp.’s 2.65% senior notes due 2026 softened about 3 bps.

MPLX LP’s $2.25 billion of senior notes (Baa3/BBB-/BBB-), priced in two tranches on Tuesday, traded about 3 bps to 8 bps tighter than issuance.

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