Commonwealth Edison, Republic Services, Union Electric, Duke price; credit spreads firm

By Cristal Cody

Eureka Springs, Ark., June 20 – Investment-grade primary action was mostly focused in the energy and utilities sector over Monday’s session.

Commonwealth Edison Co. priced a $1.2 billion offering of mortgage bonds (A2/A-/A) in two tranches.

The company sold $500 million of 2.55% series 120 10-year bonds at par to yield a spread of 87.5 bps over Treasuries and $700 million of 3.65% series 121 30-year bonds at 99.351 to yield 3.686%, or 120 bps over Treasuries.

Citigroup Global Markets Inc., Mizuho Securities USA Inc., U.S. Bancorp Investments Inc., CIBC World Markets Inc., Credit Agricole Securities (USA) Inc. and PNC Capital Markets LLC were the bookrunners.

Republic Services, Inc. brought a $500 million offering of 10-year notes.

Duke Energy Ohio, Inc. priced $250 million of 30-year first mortgage bonds.

Union Electric Co. sold a $150 million add-on to its 3.65% senior secured notes due 2045 during the session.

Issuance over the week is predicted to top out at $10 billion, according to market sources.

The Markit CDX North American Investment Grade index ended the day 3 basis points tighter at a spread of 80 bps.

Investment-grade bonds were mixed in the secondary market.

AT&T Inc.’s 4.125% senior notes due 2026 were unchanged on the day.

HSBC Holdings plc’s 3.9% subordinated notes due 2026 traded about 5 bps tighter at the start of the session.

Dell, Inc.’s senior secured notes (Baa3/BBB-/BBB-) were mixed earlier in secondary trading.

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