Active deal week forecast; Gilead Sciences, Cisco firm; 3M improves; credit spreads soften

By Cristal Cody

Eureka Springs, Ark., Sept. 16 – Investment-grade issuers stood back on Friday following more than $30 billion of supply brought over the previous four sessions.

About $30 billion of volume is expected in the week ahead with primary action to thin mid-week with monetary policy meetings from the Federal Reserve and Bank of Japan on Tuesday and Wednesday, according to market sources.

In the secondary market, Gilead Sciences Inc.’s $5 billion senior notes (A3/A/) priced in five tranches on Thursday traded about 1 basis point to 7 bps better.

Cisco Systems, Inc.’s $6.25 billion offering of senior notes (A1/AA-) sold in five tranches on Tuesday headed out on Friday trading about 2 bps to 6 bps tighter.

3M Co.’s senior medium-term notes (A1/AA-/) priced on Wednesday traded about 1 bp better on Friday.

The Markit CDX North American Investment Grade index closed the day about 2 bps wider at a spread of 76 bps.

Gilead Sciences firms

Gilead Sciences’ 1.95% notes due 2022 tightened to 74 bps bid, 73 bps offered in secondary trading, a source said on Friday.

The company sold $500 million of the notes on Thursday at a spread of 80 bps plus Treasuries.

Gilead Sciences’ 2.95% notes due 2027 were quoted at 124 bps bid, 121 bps offered on Friday.

The company sold $1.25 billion of the 10-year notes in Thursday’s offering at 125 bps over Treasuries.

The biopharmaceutical company is based in Foster City, Calif.

Cisco tightens

Cisco Systems’ 1.85% notes due 2021 tightened to 56 bps bid, 53 bps offered in the secondary market, a source said.

The company sold $2 billion of the five-year notes on Tuesday at 62.5 bps over Treasuries.

Cisco’s tranche of 2.5% notes due 2026 were quoted in the secondary market at 78 bps bid, 76 bps offered.

Cisco sold $1.5 billion of the 10-year notes on Tuesday at Treasuries plus 80 bps.

Based in San Jose, Calif., Cisco produces internet protocol-based networking and other communications and information technology products.

3M better

3M’s 2.25% notes due 2026 traded better early afternoon at 67 bps bid, 58 bps offered, according to a market source.

The notes were quoted 2 bps softer early in the day.

3M sold $650 million of the 10-year notes on Wednesday at a spread of 68 bps over Treasuries.

3M is a Maplewood, Minn.-based company that produces products including Post-it notes and Scotch tape.

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