CAT Financial, Expedia, Timken price; market tone strong; Government Properties firms

By Cristal Cody

Tupelo, Miss., Aug. 13 – Investment-grade corporate issuers brought more than $2 billion of paper to market on Wednesday.

Caterpillar Financial Services Corp. led the pricing action with a $1 billion two-part offering of medium-term notes.

Expedia, Inc. tapped the market for $500 million of 10-year senior notes.

The day also saw a deal from Timken Co., which priced an upsized $350 million of 10-year senior notes.

In other new issuance, Government Properties Income Trust brought an upsized $350 million offering of five-year senior notes.

The high-grade bond market overall “was pretty strong” on Wednesday, one source said. “It felt good.”

Investment-grade bond spreads tightened over the session, according to market sources.

The Markit CDX North American Investment Grade series 22 index firmed 2 basis points to a spread of 61 bps.

Government Properties Income Trust’s 3.75% senior notes due 2019 came in more than 50 bps in secondary trading.

Timken’s 3.875% senior notes due 2024 firmed 4 bps in aftermarket trading, while Caterpillar Financial’s tranche of 2.75% notes due 2021 tightened 2 bps.

Expedia’s notes were not active in late afternoon secondary trading.

Investment-grade bank and brokerage CDS prices declined, according to a market source.

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