BP, Philip Morris bring deals; Apple edges tighter; JPMorgan firms; credit spreads soften

By Cristal Cody

Eureka Springs, Ark., April 28 – Two high-grade corporate bond issuers tapped the market on Thursday.

BP Capital Markets plc priced a $2 billion two-part offering of notes.

Philip Morris International Inc. sold $1 billion of senior notes in two tranches.

Investment-grade bonds were mixed in the secondary market, while credit spreads softened.

Apple Inc.’s 3.25% notes due 2026 gained 1 basis point over Thursday’s session after widening 7 bps in the previous day.

JPMorgan Chase & Co.’s 3.3% notes due 2026 firmed 2 bps.

Crown Castle International Corp.’s 3.7% senior notes due 2026 priced on Tuesday traded about 3 bps tighter than issuance earlier in the day.

Citigroup Inc.’s new 3.4% notes due 2026 were seen 1 bp softer than where the paper priced.

The Markit CDX North American Investment Grade series 23 index closed more than 2 bps weaker on Thursday at a spread of 76 bps.

BP Capital Markets priced $2 billion of notes (A2/A-) in two tranches on Thursday, according to a market source.

The company sold $750 million of 1.676% three-year notes at Treasuries plus 75 bps, on the tight side of guidance of 80 bps, plus or minus 5 bps, over Treasuries.

The $1.25 billion tranche of 3.119% 10-year notes priced at a spread of 130 bps over Treasuries. The notes were talked to price at Treasuries plus 135 bps, plus or minus 5 bps.

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