LabCorp meets huge demand; Kommuninvest, Adobe also price; Adobe tightens in aftermarket

By Aleesia Forni and Cristal Cody

Virginia Beach, Jan. 21 – Laboratory Corp. of America Holdings, Kommuninvest i Sverige AB, Adobe Systems Inc., Progressive Corp. and W.P. Carey Inc. sold new issues during a busy session for the investment-grade primary.

LabCorp’s new $2.9 billion deal was the highlight of the session; the deal was swamped with orders, attracting a book that was more than five times oversubscribed.

The session also saw Kommuninvest bring to market $1.25 billion of three-year notes.

Adobe Systems was in the primary with an upsized $1 billion offering of 10-year senior notes, while Progressive priced $400 million of 30-year bonds.

And W.P. Carey was in the market with a $450 million offering of 10-year notes, after dropping a planned 20-year tranche of notes.

Development Bank of Japan Inc. and Dexia Credit Local were also in the market with new bond deals on Wednesday.

In total, the primary saw nearly $8 billion of new issuance during another volatile session for the market, bringing the week’s total supply to $13.15 billion.

Investment-grade bonds headed out mostly unchanged to modestly tighter over the session, sources said.

The Markit CDX North American Investment Grade index improved 2 basis points to a spread of 71 bps.

Adobe Systems’ 3.25% notes due 2025 tightened 7 bps in aftermarket trading, a trader said, while Progressive’s 3.7% notes due 2045 traded wrapped around issuance.

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