American Campus upsizes; UDR, AEP Texas price notes; Disney tightens; credit spreads firm

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 15 – American Campus Communities Operating Partnership LP, UDR Inc. and AEP Texas Central Co. priced smaller-sized bond deals during the quiet Tuesday session ahead of the Federal Reserve’s two-day policy meeting.

American Campus upsized its new deal to $400 million, pricing the deal around 15 basis points tighter than initial price thoughts.

UDR sold a $300 million issue of 10-year notes at the tight end of guidance, and AEP Texas Central sold $250 million of 10-year notes.

In forward calendar news, Bridge Bancorp Inc. announced a two-part fixed-to-floating-rate subordinated offering of notes slated for this week’s business.

Primary action is expected to remain subdued in light of the Federal Open Market Committee meeting on both Wednesday and Thursday, though one source noted the possibility of a rare Friday deal following the rate decision.

Secondary market activity was “slow but not as slow as I thought it would be,” a trader said on Tuesday.

New investment-grade bonds continue to trade mostly tighter in the secondary market.

Walt Disney Co.’s senior notes (A2/ A/A) that priced on Monday traded about 1 bp to 4 bps tighter on the bid side.

Earlier in the day, bonds from St. Jude Medical, Inc. and Biogen Inc. were quoted stronger in secondary trading.

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