High-grade primary market quiet; deal supply thins; 3M notes mixed; Goodman tightens

By Cristal Cody

Tupelo, Miss., Sept. 22 – High-grade issuers took the day off on Friday with no reported issuance in the primary market.

Deal volume is expected to stay light in the week ahead with about $20 billion of supply forecast, a source said.

A widely-expected multi-tranche benchmark-sized offering of senior notes from Syngenta AG (Ba2/BBB-/BBB) remains in the deal pipeline.

In the secondary market, 3M Co.’s $2 billion of series F senior medium-term notes (A1/AA-/) priced in three tranches on Thursday were mixed.

3M’s 2.25% notes due March 15, 2023 tightened to 36 bps bid, 33 bps, a source said. The $850 million of 2.875% notes due Oct. 15, 2027 softened to 68 bps bid, 66 bps offered, and the $500 million tranche of 3.625% bonds due Oct. 15, 2047 eased to 89 bps bid, 86 bps offered.

Goodman Group affiliate Goodman US Finance Three, LLC’s $850 million of dollar-denominated notes (Baa1/BBB+/) sold in two parts on Tuesday traded about 10 basis points better than issuance.

The Markit CDX North American Investment Grade 29 index ended the day modestly softer at a spread of 60 bps.

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