Vulcan, Daimler, Snap-on tap primary market; Bank Nederlandse eyes benchmark issuance

By Cristal Cody

Tupelo, Miss., Feb. 20 – Three high-grade companies tapped the primary market on Tuesday following the long holiday weekend with some issuers choosing to stand down during the session, according to market sources.

Vulcan Materials Co. priced $850 million of notes in a deal that featured one Securities and Exchange Commission-registered offering and one Rule 144A and Regulation S issue.

Daimler Finance North America LLC came with a $750 million add-on to its three-year senior floating-rate notes that were first priced in the previous week.

Also, Snap-on Inc. priced $400 million of 30-year notes during the session.

U.S. high-grade supply is expected to stay light over the week with some market sources predicting as little as $10 billion of volume.

Deal action has been quiet for more than a week in the Canadian dollar-denominated high-grade bond market, a syndicate source said.

“We haven’t had a deal in some time,” the source said. “There’s a reasonable amount of issuers in the pipeline. They’re just looking for a little more stability in Canada.”

Coming up on Wednesday, Bank Nederlandse Gemeenten NV is looking to price a benchmark-sized dollar-denominated deal.

The Markit CDX North American Investment Grade 29 index ended the day about 2 basis points wider at a spread of 53 bps.

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