Atlantic City Electric brings mortgage bonds; Dollar General, Family Dollar come in

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 18 – Atlantic City Electric Co. came to Monday’s primary market with a $150 million offering of first mortgage bonds.

As was expected, primary activity was mostly quiet as the market heads into the late-summer slowdown.

The day’s sole new deal sold at the tight end of talk, which was set in the low-100 basis points area over Treasuries.

Activity is expected to remain slow as the week moves on, as the market focuses on the Federal Open Market Committee minutes and the economic symposium in Jackson Hole, Wyo.

Investment-grade bonds traded mostly better, and spreads tightened over the session, market sources said.

The Markit CDX North American Investment Grade series 22 index firmed 3 bps to a spread of 57 bps.

Dollar General Corp.’s 3.25% senior notes due 2023 were quoted nearly 100 bps tighter from the start of the month after the company offered on Monday to buy rival Family Dollar Stores, Inc. for $78.50 a share in a deal valued at $9.7 billion, according to a trader.

Dollar Tree Inc. had announced in late July that it would acquire Family Dollar for $8.5 billion in cash and stock.

Family Dollar Stores’ 5% senior notes due 2021 saw little activity over the day but have tightened about 60 bps from where the paper traded in early August, a trader said.

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